Retirement tax questions

If you have a Form 1099-INT that reports interest in Box 3, the amount will automatically be included in the MD Form 502 Code ab subtraction.

If you have a Form 1099-DIV that includes U.S. Government Interest, after you enter it, you need to check the box that "a portion of these dividends are U.S. Government interest".  Next, click continue and enter the amount.

Next, when walking through the preparation of your Maryland return, you will come to the screen Capital Gains from U.S. Government obligations are Tax Free. Here you will enter the amount.

Finally, on your MD Form 502 Line 13, you should see the total of your Interest and dividends from U.S. Obligations and capital gains from the sale or exchange of U.S. Government obligations subtracted with Code ab notated to the left.