Maryland taxpayers who have sheltered displaced victims of Hurricane Katrina may be eligible for an additional, one-time $2,400 personal exemption on their 2005 or 2006 Maryland return for each dependent victim, up to a maximum of four dependent victims. The exemption is doubled to $4,800 for any dependent victim 65 or older.
The exemption applies to a displaced victim whose principal residence was located within the Presidential Disaster Areas hit by Hurricane Katrina on Aug. 28, 2005. The victim must have also maintained residence with the taxpayer for at least 60 consecutive days, free of charge, during a period ending in tax year 2005. Household dependents claimed in previous tax years are not eligible for the additional exemption.
The exemption benefit applies to both resident and nonresident taxpayers. Nonresident taxpayers must prorate the exemption amount to reflect the taxable income earned in Maryland.
To claim the additional exemption, taxpayers should enter tax code number "914" in the "Action Code Box" on their Maryland return. For paper filers, the box is located at the bottom of page 2 of Form 502. Paper filers must also attach a completed copy of federal Form 8914 to their Maryland tax return. Taxpayers who file electronically are not required to submit federal Form 8914, but they should keep the form with their records.
The following counties and parishes are located within the Presidential Disaster Areas hit by Hurricane Katrina:
- Louisiana: Acadia, Allen, Ascension, Assumption, Avoyelles, Beauregard, Bienville, Bossier, Caddo, Calcasieu, Caldwell, Cameron, Catahoula, Claiborne, Concordia, Desoto, East Baton Rouge, East Carroll, East Feliciana, Evangeline, Franklin, Grant, Iberia, Iberville, Jackson, Jefferson, Jefferson Davis, Lafayette, Lafourche, LaSalle, Lincoln, Livingston, Madison, Morehouse, Natchitoches, Orleans, Ouachita, Pointe Coupee, Plaquemines, Rapides, Red River, Richland, Sabine, St. Bernard, St. Charles, St. Helena, St. James, St. John, St. Landry, St. Mary, St. Martin, St. Tammany, Tangipahoa, Tensas, Terrebonne, Union, Vermilion, Vernon, Washington, Webster, West Baton Rouge, West Carroll, West Feliciana and Winn.
- Mississippi: Adams, Alcorn, Amite, Attala, Benton, Bolivar, Calhoun, Carroll, Chickasaw, Choctow, Claiborne, Clay, Clarke, Coahoma, Copiah, Covington, DeSoto, Franklin, Forrest, George, Greene, Grenada, Hancock, Harrison, Hinds, Holmes, Humphreys, Issaquena, Itawamba, Jackson, Jasper, Jefferson, Jefferson Davis, Jones, Kemper, Lafayette, Lamar, Lauderdale, Lawrence, Leake, Lee, Leflore, Lincoln, Lowndes, Madison, Marion, Marshall, Monroe, Montgomery, Neshoba, Newton, Noxubee, Oktibbeha, Panola, Pearl River, Perry, Pike, Pontotoc, Prentiss, Quitman, Rankin, Scott, Sharkey, Simpson, Smith, Stone, Sunflower, Tallahatchie, Tate, Tippah, Tishomingo, Tunica, Union, Walthall, Warren, Washington, Wayne, Webster, Wilkinson, Winston, Yalobusha and Yazoo.
- Alabama: Baldwin, Bibb, Choctaw, Clarke, Colbert, Cullman, Greene, Hale, Jefferson, Lamar, Lauderdale, Marengo, Marion, Mobile, Monroe, Perry, Pickens, Sumter, Tuscaloosa, Washington, Wilcox and Winston
- Florida: Bay, Broward, Collier, Escambia, Franklin, Gulf, Miami-Dade, Monroe, Okaloosa, Santa Rosa and Walton