Maryland Schedule K-1 (Form 510/511) reports a member's share of income, modifications, taxes paid, withholding, and credits from a Maryland Pass-Through Entity (PTE), such as a partnership, S corporation, LLC, estate, or trust. Information from Schedule K-1 is used to properly complete your Maryland income tax return.
What Is a Pass-Through Entity (PTE)?
A Pass-Through Entity passes income, deductions, credits, and other tax attributes directly to its owners, shareholders, partners, or beneficiaries. Common examples include:
- Partnerships
- S Corporations
- LLCs taxed as partnerships or S corporations
- Trusts
- Estates
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Maryland Return > Miscellaneous Forms > MD Schedule K-1 (510) Input
Information You'll Need
Have the following available before beginning:
- Maryland Schedule K-1 (Form 510/511)
- Any supplemental schedules or statements provided by the entity
- Credit certification documents when applicable
- Maryland withholding statements, if provided by the entity
PTE Information
Enter the pass-through entity's information exactly as shown on Schedule K-1.
- PTE Name
- PTE EIN
- Foreign Address
- PTE Address
Accurate entity information helps Maryland match the K-1 to the income, credits, and tax payments reported on your return.
Member Information
Enter the member information exactly as shown on the Maryland Schedule K-1.
This includes:
- Member name
- Social Security Number (SSN) or FEIN
- Residency status
- Distributive Share Percentage: Enter the percentage exactly as shown on the K-1, without the percent sign.
Member Income
- Distributive Share of Income from Federal K-1: Enter the federal distributive or pro rata share of income reported on the federal Schedule K-1.
- Distributive Share Allocable to Maryland: Enter the portion of income allocable to Maryland if shown on the Maryland Schedule K-1.
- Distributive Share of Tax Paid: Enter any Maryland tax paid by the entity on your behalf as reported in Section D of Schedule K-1.
- Withholding for Nonresident Sale of Real Property: Enter the member's share of withholding related to a nonresident sale of Maryland real property if reported in Section F of Schedule K-1.
Additions
Enter your share of Maryland addition modifications reported by the PTE.
Addition Types
- Non-Maryland Municipal Interest and Dividends
- Tax Preference Items
- Net Decoupling Modification
- Net Decoupling Modification From Another PTE
- Other Additions
Note: If Other Additions are reported, review Section G (Additional Information) or supporting schedules for explanations provided by the entity.
Subtractions
Enter your share of Maryland subtraction modifications reported by the PTE.
Subtraction Types
- Income From U.S. Obligations
- Work Opportunity Credit Salary Expense
- Net Decoupling Modification
- Net Decoupling Modification From Another PTE
- Other Subtractions
Note: If Other Subtractions are reported, review supporting statements for a description of the adjustment.
Nonresident / Resident Tax
Enter any Maryland taxes paid on your behalf by the entity.
- Nonresident Tax Paid by This PTE- Complete if the entity filed Form 510 and paid Maryland nonresident tax on your behalf. Generally applies only to nonresident members.
- PTE Election Tax Paid by This PTE; Enter your share of Maryland pass-through entity election tax paid by an electing PTE filing Form 511.
- PTE Election Tax Paid by Other PTEs: Enter your share of pass-through entity election tax paid through another PTE.
Important: Maryland instructions indicate that members receiving credits from Form 511 may need to add back those credit amounts on their Maryland return. Refer to your Maryland return instructions if these amounts are present.
Nonrefundable Credits
Enter only the credits reported on your Maryland Schedule K-1.
Nonrefundable Credits
- Enterprise Zone Tax Credit
- Maryland Disability Employment Tax Credit
- Job Creation Tax Credit
- Community Investment Tax Credit
- Businesses That Create New Jobs Tax Credit
- Credit for Buyers of Cybersecurity Technology and/or Cybersecurity Services
- Employer-Provided Long-Term Care Insurance Tax Credit
- Research and Development Tax Credit
- Security Clearance Costs Tax Credit
- First-Year Leasing Cost Tax Credit for Small Businesses
- Commuter Tax Credit
- Work Opportunity Tax Credit
- Automated External Defibrillator Tax Credit for Restaurants
- Endow Maryland Tax Credit
- Preservation and Conservation Easements Tax Credit
- Apprentice Employee Tax Credit
- Qualified Farms Tax Credit
- Endowments of Maryland Historically Black Colleges and Universities Tax Credit
Documentation Requirements
Many Maryland credits require certification or supporting documentation from the entity. Retain all supporting schedules provided with your K-1.
Refundable Credits
Enter any refundable credits reported on your Maryland Schedule K-1.
Refundable Credits
- Innovation Incentive Tax Credit for Investors in Innovation
- Film Production Activity Tax Credit
- Biotechnology Investment Incentive Tax Credit
- Small Business Research and Development Tax Credit
- Heritage Structure Rehabilitation Tax Credit / Maryland Historic Revitalization Tax Credit
- Theatrical Production Tax Credit
- More Jobs for Marylanders Tax Credit
- Catalytic Revitalization Projects and Historic Revitalization Tax Credit
One Maryland Economic Development Tax Credit
Complete this section only if information is provided by the entity.
- Certified Before July 1, 2018?
- This determines which set of Maryland Economic Development Credit calculations applies.
- Refundable?
- Total Number of Qualified Employees
- If Qualified Employees Are Below the Minimum Requirement.
- Answer whether the PTE maintained at least 25 qualified employees for at least 5 years if that question is shown on the Schedule K-1.
- Portion of PTE's Income Attributable to Project
- Amount of Maryland Income Tax Required to be Withheld From Qualified Employees
- Enter the member's share of withholding associated with qualified employees.
- Total Eligible Cumulative Project Costs
- Enter the member's share of eligible project costs as reported by the PTE.
Additional Information
Review any supplemental information provided by the entity. This section may explain:
- Other additions
- Other subtractions
- Credit calculations
- Maryland-specific modifications
- Special tax treatment items
Net Capital Gain Information
Enter the amounts reported in the Net Capital Gain section of Schedule K-1.
Categories
- Net capital gain reported on member's federal Schedule K-1
- Net capital gain from the sale or exchange of the member's primary residence
- Net capital gain from the sale or exchange of assets held in a tax-advantaged retirement savings plan
- Net capital gain from the sale or exchange of cattle, horses, or breeding livestock
- Net capital gain from the sale or exchange of land subject to a conservation, agricultural, or forest preservation easement
- Net capital gain from the sale or exchange of property used in a trade or business
- Net capital gain from the sale or exchange of affordable housing owned by a nonprofit organization
Maryland instructions direct members to include these amounts on Maryland capital gain schedules when applicable.
Maryland Modifications
Enter any Maryland modifications reported from Form 500DM.
Maryland Addition Modifications
- Depreciation Deductions
- NOL Deductions
- Original Issue Discounts
- Discharge of Business Indebtedness
- Expensing Domestic Research and Experimental Expenditures
- Business ATI Calculation
- IRC §168(n) Depreciation
Maryland Subtraction Modifications
- Depreciation Deductions
- NOL Deductions
- Original Issue Discounts
- Discharge of Business Indebtedness
- Expensing Domestic Research and Experimental Expenditures
- Business ATI Calculation
- IRC §168(n) Depreciation
Important
These fields should be completed only when the PTE reports corresponding Form 500DM modifications. If no amount is shown on the Maryland Schedule K-1 or supporting statements, leave the field blank.
Important Tips
- Enter all information exactly as shown on the Maryland Schedule K-1.
- Do not estimate missing amounts.
- Keep copies of the Schedule K-1 and all supporting statements.
- Some credits require additional Maryland certification documents.
- Maryland modifications should only be entered when specifically reported by the entity.
- Review supplemental statements carefully for explanations of "Other Additions" and "Other Subtractions."