You can find and claim the Pension Credit under the Maryland Retirement Tax Elimination Act of 2023 (Senate Bill 461) on your Maryland state tax return (Form 502U - Subtractions From Income) under the subtraction modifications section. Eligible individuals aged 65 or older, or those receiving Social Security benefits, can subtract up to $10,000 of taxable income for 2023, with the amount increasing annually.
To find the Pension Credit in TurboTax, follow these steps:
- Sign in to TurboTax
- Complete your Federal Return First
- Be sure to enter correct state information under my information
- When entering your 1099-R information enter exactly as on the form
- After completing your federal return, scroll to the bottom and proceed to the Maryland state return section in TurboTax
- TurboTax will automatically calculate the subtraction and apply it to your state return.
