There are several reasons why a taxpayer's Maryland state tax refund amount might be than he expected, such as money owed for back taxes or child support, claiming an ineligible dependant, failure to enclose Form 502, and claiming ineligible deductions or tax credits without submitting the proper forms, notes the Comptroller of Maryland. Submitting an altered W-2 or 1099 form can also reduce a tax refund, as can failure to calculate local tax.
Until a person's debt is repaid for past taxes or child support, to any state or the federal government, Maryland deducts payments from tax refunds, notes the Comptroller of Maryland. The state also has laws regarding which dependants are eligible for tax deduction claims, and that amount is deducted from a refund if a claimed child is not eligible. Maryland uses Form 502B, as of 2015, for taxpayers to include information regarding dependants and Form 502 for people who are claiming a child other than their own for tax purposes. The state does not honor claims if taxpayers fail to include these forms with their returns.
People claiming other tax deductions from their Maryland taxes must submit the proper forms and provide documentation, or those deductions are declared ineligible by the state and deducted from projected tax refund amounts, notes the Comptroller of Maryland. The state of Maryland may also delay processing refunds or tax returns for various reasons, such as when taxpayers have been selected for audit.