Yes - Your CSRS pension does qualify for Maryland's maximum pension exclusion of $33,100 -- it is considered an employee retirement system.
Instruction 13 of the Maryland resident tax booklet states:
If you're eligible, you may be able to subtract some of your taxable pension and retirement annuity income from your federal adjusted gross income.
This subtraction applies only if:
- You were 65 or older or totally disabled, or your spouse was totally disabled, on the last day of the tax year; and
- You included on your federal return income received as a pension, annuity or endowment from an "employee retirement system." Please note that these include qualified defined benefit and defined contribution pension plans, 401(a) plans, 401(k) plans, 403(b) plans, and 457(b) plans.
- A traditional IRA, a Roth IRA, a simplified employee plan (SEP), a Keogh Plan or an ineligible deferred compensation plan does not qualify.
