Hi DMark1,
Thank you for the fast expert response!
I double checked Turbo Tax Forms -- confirmed correct entries, unless missed something: military retired (age 67), 1099R, and checked "nonqualified" type retirement plan.
No data entry errors found.
TT is automatically selecting Form 502 Line 10a Pension Exclusion of $12,375 and Line 13 Code U $15K. Since Turbo Tax is automatically choosing where numbers go, which cannot be overridden, is it therefore correct per Maryland tax instructions?
The link provided shows MD Income Tax Administrative Release No. 23 - Retirement Income. If I read it correctly, it artfully says, "... may [MAY] also be eligible to exclude military and other qualifying retirement income as computed under [section] 10-209."
Is this the language you consider when saying I am entitled to both Subtractions from Income? MD Form 502 Line 10a. and Line 13 Code U? If not, please clarify.
I previously sat down with the MD Comptroller tax staff and asked about taking both subtractions. In response, they said that I may only take one subtraction, either Form 502 Line 10a. or Line 13 Code U, whichever is most advantageous. Line 13 Code U $15K was best option in my case. Consequently, I had to amend MD State 502 for taxyears 19 and 20. Yes, used Turbo Tax Deluxe desktop in both years, which automatically completed TY19 and TY20 subtractions and inserted numbers in forms.
What do you recommend going forward?
Thanks!
