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Maryland RELIEF Act 2021

nrosario17
Level 1

Maryland recently passed the RELIEF Act 2021 where State Income Tax Exemption for Unemployment Insurance (UI) Benefits for qualifying filers. Beginning with Tax Year 2020 and including Tax Year 2021, the Act exempts from the state income tax the UI benefits received by an individual earning less than $75,000, and couples filing jointly or individual heads of households earning less than $100,000. Taxpayers can claim the subtraction on their 2020 and 2021 Maryland State Tax Return. Will Proseries send an update to refund IU taxes to taxpayers?  How would preparer do this?

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8 Replies 8
chasetax
Level 7

no details yet---we(preparers) may have to enter it as a subtraction or -- if intuit can get a program change before april 15th since we only started e-filing six days ago the subtraction might be automatic.  if not get out your maryland amended forms, looks like we will need them!!

IRonMaN
Level 15

That's odd that nobody has asked about this yet 😉

ACME Taxes, Tatoos, Tires and Tomatoes (I had to get rid of the turtles - they kept running away)
sjrcpa
Level 15

It was only signed yesterday. MD needs to update their forms and then Intuit has to update the program.


ex-AllStar
rbynaker
Level 11

@sjrcpa wrote:

It was only signed yesterday. MD needs to update their forms and then Intuit has to update the program.


But it's been hours already.  What else do they have to do?  I mean, aside from sending out 32,000 state relief payments...

imantax
Level 1

On the Maryland website it stated a new form for this and that the change would not be available until March 25.   Can we write in a subtraction or wait for the state and pro series to do their thing?  Seems safer to wait on Form 502__

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Itsblueeyes
Level 1

I saw something about an hour ago I don't remember where I saw it and it said to make sure we pull up the 502 CR for the credit. Of course I went line by line and I see nothing on there plus I looked on the 502 as you and I see nothing on there. I'm wondering if there's some place on there as an other which didn't jump out that we can just do this. According to the list, Maryland was updated April 1st.

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Itsblueeyes
Level 1

https://marylandtaxes.gov/RELIEFAct/Electronic-Press-Kit-RELIEF-Act.php According to the tax act that they printed out a while ago it says it's not the final authority but this form if you click the link above clearly states 502LU, for grants. Unfortunately I don't see it in the forms so get creative and do the 502CR or 502SU or even get creative with the allocation worksheet. We would understand that but whoever is sitting on the other side when it's received may not.

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jebb
Level 2

Gov. Larry Hogan extended the Maryland due date to 15 July 2021.  So I think there will be time to amend eligible clients' Maryland State Tax Returns, if Proseries announced a 25 March 2021 update. Thanks.

What's New for the Tax Year (marylandtaxes.gov)

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