2018 Maryland Code
Tax - General
Title 10 - Income Tax
Subtitle 2 - Maryland Taxable Income Calculations for Individual
Part II - Maryland Adjusted Gross Income
§ 10-210. Subtractions from federal adjusted gross income -- Nonresidents
(a) In general. -- The amounts under this section are subtracted from the federal adjusted gross income of a nonresident to determine Maryland adjusted gross income.
(b) Income derived in State excluded. -- To the extent included in federal adjusted gross income, the subtraction under subsection (a) of this section includes all income other than:
(1) income derived from real or tangible personal property located in the State, whether the income is derived directly or from a fiduciary;
(2) income derived from:
(i) a business that is wholly carried on in the State and in which the individual is a partner, shareholder of an S corporation, member of a limited liability company as defined under Title 4A of the Corporations and Associations Article, but only to the extent the company is taxable as a partnership under § 761 of the Internal Revenue Code, or proprietor; or
(ii) an occupation, profession, or trade that is wholly carried on in the State;
(3) the part, allocable to the State under § 10-401 of this title, of income derived from:
(i) a business that is carried on both in and out of the State and of which the individual is a partner, shareholder of an S corporation, member of a limited liability company as defined under Title 4A of the Corporations and Associations Article, but only to the extent the company is taxable as a partnership under § 761 of the Internal Revenue Code, or proprietor; or
(ii) an occupation, profession, or trade that is carried on both in and out of the State; and
(4) income from Maryland State Lottery prizes or winnings from any other wagering, as defined in § 10-905(e) of this title, in the State.
(c) Federal adjustments. -- To the extent not otherwise included under subsection (b) of this section, the subtraction under subsection (a) of this section includes the amounts allowed to be subtracted for residents under § 10-207 of this subtitle.
(d) State adjustments. -- Subject to § 10-219 of this subtitle, the subtraction under subsection (a) of this section includes the amounts allowed to be subtracted for residents under § 10-208 of this subtitle.
(e) Reciprocal adjustments regarding certain wages. -- The subtraction under subsection (a) of this section includes income derived from wages, as defined in § 10-905(f) of this title, that are earned in this State if the Comptroller and the state in which the nonresident resides have agreed in writing to allow a reciprocal exemption from tax and withholding for the wages of residents of each state that are earned in the other state.
(f) Reciprocal adjustments regarding certain wages -- Nonresident rendering police, fire, rescue, or emergency service. -- The subtraction under subsection (a) of this section includes income derived from wages that are earned in the State by a nonresident rendering police, fire, rescue, or emergency services in an area covered under a state of emergency declared by the Governor under § 14-107 of the Public Safety Article if the wages are paid by:
(1) a nonprofit organization not registered to do business in the State and not otherwise doing business in the State; or
(2) a state, county, or political subdivision of a state, other than the State of Maryland.
