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The Maryland Revenue Administration Division made a few changes for the 2020 tax year.
Two new credits have been added this year - a refundable child tax credit and a refundable credit for pass-through entity tax paid on distributive or pro rata shares of income. There is also a new addition to income for the amount of this credit. The state Earned Income Credit was also expanded.
Four new subtractions have been added. The first is based on the gain recognized as a result of the sale of property within Laurel Park, Pimlico or Bowie Race Course Training Center and for income recognized by the state investment in these sites. The second new subtraction is for the value of a subsidy for rental expenses received by a resident of Howard County under the "Live Where You Work" program of the Downtown Columbia Plan.
The other two new subtractions were added to Form 502LU based on changes from the Recovery for the Economy, Livelihoods, Industries, Entrepreneurs, and Families (RELIEF) Act of 2021. One is a subtraction for unemployment compensation. The other is a subtraction for Coronavirus relief grant payments or loan forgiveness.
The subtraction for law enforcement officers working and residing in high-crime areas has been modified to include members of the Maryland Transportation Authority Police, Maryland-National Capital Park Police, and the Washington Suburban Sanitary Commission Police Force.
The Honorable Louis L. Goldstein Volunteer Fire, Rescue and Emergency Medical Services Personnel Subtraction has been increased to $6,000.
In addition, Maryland extended the filing deadline until July 15, 2021. No interest or penalties will be assessed if returns are filed and taxes owed are paid by the new deadline.
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