You may qualify for a pension exclusion of up to $15,000, on the MD state return, if you meet the following requirements:
- You were 55 or over on the last day of the tax year, AND
- You were not 65 or older, or totally disabled, or have a spouse who is totally disabled, AND
- You included on your federal return taxable 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 of the Internal Revenue Code, AND
- The retirement income is attributable to your service as correctional officer, a law enforcement officer or fire, rescue, or emergency services personnel of the United States, the State of Maryland, or a political subdivision of Maryland.
Reference: https://taxes.marylandtaxes.gov/Individual_Taxes/Individual_Tax_Types/Income_Tax/Filing_Information/...
As others have indicated, you will be asked if your qualify in the state interview portion of TurboTax. It is entered as a deduction on state form 502SU. See https://ttlc.intuit.com/community/state-taxes/discussion/how-do-i-claim-the-maryland-hometown-heroes...
