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Make sure that you identify the pension income as Active or reserve military retirement.
Maryland Military Retirement Pay and Pension Tax Benefits may be found here.
If you receive or the spouse of a military retiree receives military retirement income, you will be able to subtract up to $12,500, with an increase to the first $20,000 for individuals who are at least 55 years old on the last day of the taxable year, of your military retirement income from your federal adjusted gross income before determining your Maryland tax. The retirement income must have been received as a result of any of the following military service:
I have done this, but nowhere in my Maryland State tax computation does it seem to be reflected. When I review my taxes it only shows the one, single value for Taxable Income for 2024, and as best as I can tell (thank you, TurboTax, for completely obfuscating basic information for my State Taxes and not showing me the individual forms I need to see) it's using this value for both Federal and State. Thus, it is not subtracting the $12,500 that it should from our Federal taxable income amount.
Is there some way for me, the filer, to see in Turbo Tax whether or not it's removing the $12,500 from our taxable income for the State of Maryland?
You are able to view the subtraction on Maryland state income tax form 502SU here.
You can print or view your full tax returns prior to filing after you have paid for the software.
In TurboTax Deluxe Online, I am able to report the Maryland Income Tax Subtraction for Military Retired Pay.
I am reporting the taxpayer age over 55 who was Active duty military and reported such under My Info.
The retirement distribution was designated as a non-qualified plan and as Active or reserve military retirement.
Within the Maryland state income tax return, I reported as You served on active duty in the military.
This Maryland website states:
Retired Service members under age 55 can subtract up to $12,500 of their military retired pay from their gross income before determining their Maryland tax. At age 55 this subtraction increases to $20,000.
Who is eligible for Maryland Income Tax Subtraction for Military Retired Pay?
This subtraction is available to retired Service members who are receiving military retired pay from an active or reserve component of the U.S. Armed Forces.
So... AGAIN... TT will not show that form until after you've completed filing. I want to see that it's taking that deduction *before* I file.
Unfortunately, you do need to pay for the program before Turbo Tax will allow you to look at forms.
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