The Maryland military retirement exemption is dealt with in the
federal section of TurboTax.
TurboTax Online:
First, is to double check the Indicator for military retired in
the personal section:
- Sign
in to your return and click on Personal Info tab
- Click
on Edit link (in blue) to the right of your name
- On Your
personal info screen, under question 1, answer Yes to I am
a member or former member of the U.S. Armed Forces (active, reserve
or National Guard).
- Continue
through to What was your military status as of December 31,
2016? screen
- Click
radio button to left of Former member (retired, veteran, etc.)
Second, to receive the Maryland exclusion for a portion of your
military retirement, you need to flag your 1099-R as military retirement.
After you enter the information on your 1099-R, there will be several follow-up
questions. Look for the page titled “Where Is This Distribution
From?” Select “Active duty military retirement.”
Make certain to work through all the screens after the 1099-R
entry screen. Ensure the box for IRA/SEP/Simple is not checked
and you choose non-qualified plan.
A simple way to check for this subtraction once you've worked
through your MD return (and if you have no other subtractions) is to click My
Account on blue dashboard and choose Tools. Under Other helpful links....
click View Tax Summary. Below My Account, click MD Tax Summary (in
gray). Next to Subtractions From Income you will see $5000.
TurboTax Desktop/CD:
First, is to double check the Indicator for military retired in
the personal section. (The retired military indicator in the personal
section does not impact the state retirement subtraction.)
- Once
in your return, click Personal Info Tab
- On Your
"Personal Info Summary" screen, click Edit next to
your name
- On the
bottom of the "Your Info" screen, click YES next
to Served in the U.S. Armed Forces in 2016 (Active,
Reserve, or National Guard). (You will need to answer Yes
to get to next screen to choose Retired.)
- Once
answered Yes, the next screen will be titled "What Was Your Military
Status as of December 31, 2016? You can now indicate retired
military.
Second, to receive the Maryland exclusion for a portion of
your military retirement, you must flag your 1099-R as military
retirement. After you enter the information on your 1099-R, there
will be several follow-up questions. Look for the page titled “Where Is
This Distribution From?” Select “Active duty military retirement.”
Make certain to work through all the screens after the 1099-R
entry screen. Ensure the box for IRA/SEP/Simple is not checked
and you choose non-qualified plan.
To check the for the Maryland military retirement subtraction of
$5000:
- Click
on Forms in top right corner of blue dashboard.
- Under Forms
in my Return on left hand side, scroll down to Maryland
Individual and click on Form 502R.
- Your
retirement amount will be listed on Line 1 and the $5000 subtraction taken
on Line 10.
To return to main input screens, click Step-by-Step in
top right corner of blue dashboard.
(Edited 02/05/2017)
