4/15/21
Maryland, as of 4/15/21, has implemented the new schema to support Form 502LU and other applicable changes. Taxpayers with Form 502LU on their MD returns should now be able to e-file those returns.
See information regarding the Maryland Relief Act here.
Maryland recently signed into law (February 15th, 2021) their RELIEF Act. With this recently passed legislation, a new subtraction form has been introduced (Form 502LU) to account for subtracting unemployment income from being taxed on the Maryland return. This form has been released by Maryland to software vendors and has been implemented into the TaxSlayer software. However, Maryland has not yet released the new schema to support this form via e-file. For this reason, if Form 502LU is on a return for your client(s), you will see an e-file block preventing you from e-filing the Maryland return at this time (the Federal return can still be e-filed).
Maryland has indicated the new schema will not be made available until early March. Once the schema has been issued and implemented into our software, the e-file block for impacted returns will be removed and those returns can be e-filed at that time. We will update this blog post once the new schema has been implemented. If a taxpayer has unemployment income reported on their Federal return, using Form 502LU, it will be automatically subtracted from the Maryland return without the need for manual adjustment.
Maryland has also stated that for any returns already filed that can now take advantage of this unemployment subtraction, an amended MD return must be prepared and filed.