Feb. 12 New Start Date For Filing Personal Taxes In Maryland

MARYLAND — The state will not begin processing personal income tax returns for the 2020 tax year until Feb. 12, several weeks later than the traditional mid- to late January start date. The delay allows the Internal Revenue Service additional time to implement changes related to federal coronavirus relief packages. Corporate income tax returns will be accepted starting Feb. 1.

“This late-starting tax season is yet another result of the global pandemic that has tragically killed more than 400,000 Americans, destroyed tens of thousands of small businesses, cut millions of jobs and depleted individual savings,” Maryland Comptroller Peter Franchot said. “My pledge to Maryland taxpayers is to process state returns as quickly as possible and get refunds back into taxpayers’ hands where it can help individuals and the broader economy.”

Last year, the Comptroller’s Office processed more than 3.2 million individual state tax returns with refunds totaling $3.03 billion. As of now, the filing deadline for 2020 tax returns is the traditional April 15 date. If the pandemic forces any change to that deadline, the Comptroller’s Office will communicate that information.

Maryland taxpayers can use the agency’s free I-File system to submit their state tax returns. Franchot recognizes that some Marylanders may have difficulty paying their tax liabilities this year due to the pandemic’s impact on individuals, families and businesses. The agency is working with taxpayers experiencing financial difficulty and providing flexible payment plans, his office said.

Several important points taxpayers should know as they prepare tax returns:

• The federal stimulus payments signed in March and December are not considered income and therefore are not taxable.
• Unemployment benefits are taxable.
• Recipients of forgiven PPP (Paycheck Protection Program) loans do not have to pay taxes on the amount forgiven.
• To the extent they are included in federal adjusted gross income, Maryland COVID-19 grants issued by the Maryland Department of Commerce are taxable.
• Purchases of personal protection equipment, or PPE, are deductible for federal tax purposes, and currently these business expenses deductions flow through to the Maryland return.

Taxpayers with COVID-19-related tax questions or regarding tax filing extensions can visit the special COVID-19 page on the Comptroller's website or email the Comptroller’s ombudsman at taxpayerrelief@marylandtaxes.gov. More information can be found in the most recent Tax Alert.

Taxpayers can get assistance through the agency’s 12 branch offices; however, all in-person customer service operations have been temporarily suspended. Virtual appointments can be scheduled online at https://www.marylandtaxes.gov/.... The agency’s branch offices and call centers are both open 8:30 a.m. – 4:30 p.m., Monday through Friday. Beginning Feb. 1 and continuing through the April 15 tax deadline, telephone assistance will be available from 8:30 a.m. - 7:00 p.m. Taxpayers can also call 1-800-MD-TAXES or email questions to taxhelp@marylandtaxes.gov.