The Maryland two income subtraction allows a deduction of up to $1,200 for a dual income married couple. The maximum amount of the deduction is $1,200, but it can be lower if the other couple's inco...
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The Maryland two income subtraction allows a deduction of up to $1,200 for a dual income married couple. The maximum amount of the deduction is $1,200, but it can be lower if the other couple's income (including wages and other allocated income items) are lower than $1,200. This is a link to a worksheet for this deduction in MD: Two income worksheet .
I tried a couple of scenarios with a married couple where one spouse only had $500 wage income and the couple jointly had $1000 of interest income and TurboTax correctly allocated half to interest income plus the one spouse's wage income to get a deduction of $1,000 ($500 wages + $1,000/2 interest). When I bumped up the wage income to $2,000 from $500, leaving the interest income at $1,000, TurboTax gave the correct result of $1,200 for the deduction, which is the maximum allowable.
Go back in and check to make sure that the deduction is figured correctly, keeping in mind that it can't be greater than $1,200.