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Am working on my Maine state tax return, trying to determine my pension income deduction. What constitutes eligible pension income?

Is eligible pension income just the total pension income received?

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Employee Tax Expert

Am working on my Maine state tax return, trying to determine my pension income deduction. What constitutes eligible pension income?

Eligible pension income in Maine includes the following:

Deductible pension income, other than military retirement pay, includes state and federal pension benefits and retirement benefits received from plans established and maintained by an employer for the benefit of its employees such as: qualified pension plans, including qualified SIMPLE plans; employee annuities; and eligible deferred compensation plans from state and local governments or tax exempt organizations. Deductible pension income also includes benefits received from individual retirement accounts, including ROTH and SIMPLE IRAs, and simplified employee pension plans.

(Taken from the following Maine link: What is the Pension Benefits Income Deduction?)

However, any retirement income deduction is reduced by taxable and non-taxable Social Security benefits you are receiving.  

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Employee Tax Expert

Am working on my Maine state tax return, trying to determine my pension income deduction. What constitutes eligible pension income?

Eligible pension income in Maine includes the following:

Deductible pension income, other than military retirement pay, includes state and federal pension benefits and retirement benefits received from plans established and maintained by an employer for the benefit of its employees such as: qualified pension plans, including qualified SIMPLE plans; employee annuities; and eligible deferred compensation plans from state and local governments or tax exempt organizations. Deductible pension income also includes benefits received from individual retirement accounts, including ROTH and SIMPLE IRAs, and simplified employee pension plans.

(Taken from the following Maine link: What is the Pension Benefits Income Deduction?)

However, any retirement income deduction is reduced by taxable and non-taxable Social Security benefits you are receiving.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

New Member

Am working on my Maine state tax return, trying to determine my pension income deduction. What constitutes eligible pension income?

I am very disappointed TurboTax doesn’t ask the right questions such that this info would be filled in automatically.  If I need to read the Maine tax code, maybe I don't need TurboTax.