The Md tax book lists a credit of $10000.00 from military retirement if tax payer is over 65 and includes surviving spouse. where do I place and receive this credit

[BMcCalpin]

First, it is not a "credit" which is a dollar-for-dollar reduction of your tax, but a "deduction" which reduces your taxable income.

When you enter your 1099-R on the federal return, if you indicated that your residence (in My Info) was Maryland, after a few screens, you will see "Select Your State". Please select Maryland.

On the next screen, you will see "Where Is This Distribution From?". Indicate "Active duty military retirement" and enter the amount of the distribution in the first box. This should subtract the distribution ($10,000 or whatever) from your Maryland state income.