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Level 2
February 27, 2026
Solved

Maryland State pension exclusion for retired law enforcement

  • February 27, 2026
  • 3 replies
  • 132 views

I am over 65 and have pension income from a law enforcement career. Do I lose this exclusion if I also collect social security?  This is in reference to my Maryland state return.

    Best answer by dmertz

    Expert Reviewed

    With regard to the exclusion limits on 2025 pension income, collecting Social Security does not reduce the $15,000 limit on the exclusion of distributions from an employee retirement system that is attributable to service as a public safety employee.  However, the ordinary $41,200 Maryland pension exclusion limit is reduced by the amount of Social Security benefits.  The amount of pension income that is considered for the ordinary Maryland pension exclusion does not include any amount of pension excluded as a public safety employees.  (You don't get to exclude any portion of the the public safety pension twice.)

    3 replies

    LaShaunA3
    Level 9
    March 1, 2026

    No, collecting Social Security doesn't disqualify you from the Maryland pension exclusion.

     

    Social Security benefits are already excluded from Maryland taxable income, so receiving both doesn't cause you to lose the pension exclusion. 

     

    For more information, see Maryland Form 502 instructions

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    dmertzAnswer
    Level 15
    March 2, 2026

    Expert Reviewed

    With regard to the exclusion limits on 2025 pension income, collecting Social Security does not reduce the $15,000 limit on the exclusion of distributions from an employee retirement system that is attributable to service as a public safety employee.  However, the ordinary $41,200 Maryland pension exclusion limit is reduced by the amount of Social Security benefits.  The amount of pension income that is considered for the ordinary Maryland pension exclusion does not include any amount of pension excluded as a public safety employees.  (You don't get to exclude any portion of the the public safety pension twice.)

    Level 2
    March 3, 2026

    Thanks so much!