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Screen MDAdj - Maryland Income and Adjustments (1040)
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Overview
Use this screen to enter amounts needed for Forms 502, 502SU, and the Poverty Level Credit Worksheet. You need to enter all interest and dividend amounts in the federal B&D, K1, K1T, and K1-St screens. Enter capital gains from the sales of U.S. obligations in the
Schedule for detail
statement window in the federal B&D screen using state use code 12
. Enter capital gain distributions attributed to U.S. obligations in the Dividend income
statement in the federal B&D screen and the Dividends
statement of the K1-2 and K1T screens. The same percentage applied to the dividend distribution attributed to U.S. obligations is also used for the capital gain distribution. Enter all nonresident adjustments, additions, and subtractions for nonresident income in the MDPYNR screen.Adjustments
Poverty level income (Force)
Use this field to force the amount of poverty level income if different from the calculated amount. UltraTax CS automatically calculates this amount from income information entered in the federal input screens. This amount transfers to the Maryland Poverty Level Credit Worksheet, line 2.
Additions
Other additions
In these statement windows, enter codes and amounts for other additions to income.
Code
B
net additions from pass-through entities may be entered in the federal Screen K1-St screen. This amount transfers to the Other additions
statement window. Entries may be made in the Other additions
statement window on this screen for code B
and is included on Form 502SU and 502SU Worksheet.The following codes don't appear in the field view because amounts for these codes are calculated elsewhere in UltraTax CS based on federal data entry and are included in the statement printed for the Other additions line on Form 502.
Code |
Description |
|---|---|
L, M, CD, DM, DP |
Amounts are calculated on Form 500DM. |
I |
Amounts are calculated on Form 502TP. |
N |
Based on federal data entry in the 8903 screen for domestic production activities deduction used on federal From 1040 for domestic production activities. |
O |
Based on federal data entry in the Educate screen and the deduction taken on federal Form 1040. |
Minimum distribution allowance with multiple recipient distributions
UltraTax CS automatically transfers the minimum distribution allowance calculated on federal Form 4972. Use these fields when any federal 1099R screen contains a percentage in box 9a, indicating that there are multiple recipients for a single distribution. Enter the total minimum distributions for all lump sum distributions. The amounts entered are used on the Lump Sum Distribution Worksheet, line 4, to reduce the taxable ordinary income and capital gain portions of lump sum distributions.
Losses and adjustments realized or paid while a nonresident (part year)
Use this field to print additions to income using code A.
Subtractions
UltraTax CS uses the information in this section to complete portions of Form 502.
For married couples filing Form 502 using Military A and B worksheets where one filer is a resident but the other is nonresident military, you need to select the resident return under File, then Client Properties. Enter the nonresident military wages in box 14 using code
38
in the federal W2 screen. The wages assigned to code 38 are reported on Form 502 as income received during the period of residence. Military Worksheet A prorates deductions and exemptions taken on Form 502, Page 1. Military Worksheet B calculates the Maryland tax used on Form 502, Page 2.Enter any college prepaid investment trust contract payments and / or college investment / broker plan contributions in the federal 1099Q screen in the Educate folder. Use code
18
or 19
as appropriate. You also need to enter an eight-digit account number to identify the beneficiary and their account in case any contributions not used to reduce Maryland adjusted gross income may be carried over to future years. Enter all carryover information in the MDAdj screen in the College savings plans prior years carryover
statement window, regardless of the return type selected under File, then Client Properties.Code
B
Net subtractions from pass-through entities may be entered two ways. If you're using the federal K1-St screen, all entries are combined and if this results in an overall subtraction, the amount transfers to Form 502SU and the 502SU worksheet. If you're using the other subtractions statement window, enter the overall net amount to use on Form 502SU and the 502SU worksheet.The codes in the following table don't appear in the field view because these amounts are calculated elsewhere in UltraTax CS and are included on Form 502SU.
Codes |
Description |
|---|---|
A, U |
Amounts transfer from UltraTax/1040 based on data entered in the 1099R screen. |
G |
Amounts transfer from federal Form 5884. |
K |
Amounts transfer from UltraTax/1040 based on data entered in the Eligible children information statement in the 8839 screen. Use state use code 1 to indicate the taxpayer was a Maryland resident at the time of the adoption. |
P |
Amounts are calculated on the Maryland Military Overseas Income Worksheet. |
Q |
Amounts are calculated on Form 502V. |
R |
Amounts transfer from state pickup amounts entered in the federal 1099R screen, box 15. You need to select code SPU in box 16 to open the field for box 17. |
S |
Amounts transfer from federal Form 8814 interest, dividend and capital gain income included in the parent's return. |
X |
Amounts are calculated on the Maryland College Savings Contribution Carryover Worksheet. |
BB, CC, CD, DM |
Amounts are calculated on Form 500DM. |
HH |
Amounts are determined by recalculating the Maryland exemptions without regard to the U.S. obligation income reported on the Maryland return, and then taking the difference between the exemption used on the Maryland return and the calculated exemption. |
II |
Amounts transfer from the Interest income statement windows in the federal B&D, K1-2, and K1T screens. Use state use code 1 to indicate the amount is attributed to Build America Bonds. |
College savings plans prior years carryover
If you used UltraTax CS to prepare the return in the prior year, information proformas to the statement window if any Maryland College Investment Plan or the Maryland Broker-Dealer College Investment Plan used state use code
19
, or if payments were made on a Maryland Prepaid College Trust using state use code 18
. Refer to Maryland Income Tax Administrative Release No. 32 for additional information. You can access this document online through the tax subject help index web form instructions under Administrative Releases.Any amounts paid that were not deducted on the prior year's return proforma to the
Total Prior year carryover
column. Amounts paid to any Maryland College Investment Plan and the Maryland Broker-Dealer College Investment Plan that were not subtracted from income in the year the contributions were made can be carried over for up to 11 years. The total amounts entered in the 1st Year Carryover
through the 11th Year Carryover
columns must total the amounts entered in the Total Prior Year Carryover
column.The information in the following columns transfer from the federal 1099Q screen:
TS
, Beneficiary SSN
, Beneficiary First Name
, Beneficiary Last Name
, State Use
, and Prepaid Trust / Invest Plan Account No
.The
Year of 1st Cont
column is used to indicate the year contributions began for an account. UltraTax CS doesn't use this column in any calculations, but the information is provided for the preparer's use.The
All Prior Year Contributions Subtracted from Income
column tracks the cumulative sum of contributions deducted in previous years when the client's data was proforma'd on the return. UltraTax CS doesn't use the amounts in this column in calculations, but the amounts are available for preparer use if an unqualified distribution from a plan occurs and an addition to income is necessary. Refer to Maryland Income Tax Administrative Release No. 32, paragraph V for additional information.Suppress two-income married couple subtraction
Use this field to suppress calculating the Two-Income Married Couple Subtraction Worksheet. When you select this field, the return won't have the two-income subtraction.
Federal targeted jobs credit (Force)
This amount automatically transfers from federal Form 5884. On a joint return, the amount is split equally between the taxpayer and spouse. Use these fields to force the calculated amounts for the federal targeted jobs credit. These amounts are included in the statement printed for the Other subtractions line on Forms 502 and 505.
Other subtractions
In these statement windows, enter codes and amounts for other subtractions from income.
The codes in the following table don't appear in the field view because UltraTax CS calculates these code amounts elsewhere. They are included on Form 502SU.
Enter code B net subtractions from pass-through entities on the federal K1-St screen. This amount transfers to the other additions statement window. You can make additional entries in the other additions statement window for code B, and this is included on Form 502SU.
Code |
Description |
|---|---|
A, U |
Amounts transfer from UltraTax/1040 based on data entered in the 1099R screen when you use state codes 15 , 24 , or 30 . |
G |
Amounts transfer from federal Form 5884. |
K |
Amounts transfer from UltraTax/1040 based on data entered in the Eligible children information statement in the 8839 screen. Use state use code 1 to indicate the taxpayer was a Maryland resident at the time of the adoption. |
P |
Amounts are calculated on the Maryland Military Overseas Income Worksheet. |
Q |
Amounts are calculated on Form 502V. |
R |
Amounts transfer from state pickup amounts entered in the federal 1099R screen, box 19. You must enter code STP in box 18 to open the box 19 field. |
S |
Amounts transfer from federal Form 8814 interest, dividend and capital gain income included in the parent's return. |
X |
Amounts are calculated on the Maryland College Savings Contribution Carryover Worksheet. |
BB, CC, CD, DM |
Amounts are calculated on Form 500DM. |
HH |
Amounts are determined by recalculating the Maryland exemptions without regard to the U.S. obligation income reported on the Maryland return, and then taking the difference between the exemption used on the Maryland return and the calculated exemption. |
II |
Amounts transfer from the Interest income statement windows in the federal B&D, K1-2, and K1T screens. Use state code 1 to indicate the amount is attributed to Build America Bonds. |
State pickup contribution carryover
Use these fields to enter any unused pickup contributions shown on Form 1099R from the state retirement or pension systems included in federal adjusted gross income that wasn't used to reduce Maryland adjusted gross income in prior years.
State pickup subtraction (Force)
The state pickup subtraction calculates automatically from amounts entered on the federal 1099R screen and in the
State pickup contribution carryover
fields on this screen. Use these fields to force a different subtraction amount on Maryland Form 502 SU. Any state pickup contribution that isn't subtracted on Form 502SU is carried forward.Build America Bond interest from other states' bonds
Enter any interest amounts attributed to Build America Bonds that aren't issued to the State of Maryland.