Does the $15000 military retirement pay deduction for over 55 years of age, in Maryland, need to be pro-rated by the number of months of residency? I was a resident for 9 months (the first three in FL, last 9 in Maryland). The Maryland tax forms have applied the full deduction in Turbo Tax. The language in the instructions is as follows:
If you receive or the spouse of a military retiree receives military retirement income, you will be able to subtract up to $5,000, with an increase to the first $15,000 for individuals who are at least 55 years old on the last day of the taxable year, of your military retirement income from your federal adjusted gross income before determining your Maryland tax. The retirement income must have been received as a result of any of the following military service:
- Induction into the U.S. Armed forces for training and service under the Selective Training and Service Act of 1940 or a subsequent Act of similar nature
- Membership in a reserve component of the U.S. armed forces
- Membership in an active component of the U.S. armed forces
- Membership in the Maryland National Guard
