i can't enter my pension exclusion for the maryland tax return on form 502 although it appears on form 502R how can i fix this?

[mdfiler1]

form 502 will not allow me to enter the pension exclusion, and it doesn't import it from 502R

[BillM223]

So you are saying that you have an amount (presumably from a 1099-R) on line 11a or 11b on form 502R, but this amount does not carry to line 10a on form 502?

[mdfiler1]

Exactly.  I have calculated and entered the pension exclusion amount on line 11 in form 502R, but wit won't carry over into form 502 and won't let me manually enter it into form 502.

[scdjcdverizonnet]

New for 2025  IRA withdrawals are included in the Maryland pension exclusion calculations (https://mgaleg.maryland.gov/2025RS/fnotes/bil_0005/hb0355.pdf).  I can't get Turbo Tax to recognize this, and I suspect you are tripping up over the same issue when you are trying to correct the issue manually.

[BillM223]

Are you entering data directly into Forms mode? We discourage this as much as possible.

If you are unable to do this, I would look at the reasons why the State might not allow this exclusion. 

For example, 

* Do not include any amount subtracted for military retirement income (see code letter u in Instruction 13) or public safety retirement income (see code letter v in Instruction 13). 

* You can't claim both pensions exclusions, the standard on Line 10a and the Retired Forest/ Park/ Wildlife Ranger on Line 10b of Form 502.

* you and your spouse are not 65 (unless disabled).

* you are trying to exclude a distribution from an IRA. (Plans under Sections 401(a), 403 or 457(b) of the Internal Revenue Code only)

* and so on - see Instructions for Line 13 on page 7 in the Maryland 2025 Resident Instruction Booklet

I am not sure, but I can see TurboTax not allowing the entry on the 502, if this is not a valid amount to exclude.

[dmertz]

@scdjcdverizonnet , that bill died in committee, so it never became law.  IRA distributions continue to be ineligible for the Maryland pension exclusion.

[BillM223]

The Maryland HB 355 that you are referring to is not law. This is what LegiScan reports on the bill's history:

Spectrum: Partisan Bill (Republican 7)
Status: Introduced on January 16 2025 - 25% progression, died in committee
Action: 2025-01-16 - Hearing 1/30 at 1:00 p.m.
Pending: House Ways and Means Committee

So, the bill never made it out of the House Ways and Means Committee.

This explains why, in my post above, I did not find in the Maryland instructions that distributions from an IRA were eligible for pension exclusion.

@scdjcdverizonnet 

[scdjcdverizonnet]

Well, that was a completely unexpected bit of information, thanks much you have saved me many hours of confusion.  I guess that open government means that (almost?) all paper ends up on the internet.  In the future I guess that I need to keep checking even after I have found something that looks finalized.  Again, thanks much and I apologize for any aspersions I might have cast on TurboTax.

[user17717779336]

My pension is one that is included in the allowable exclusions, yet does not appear on the form. This causes a shift of $3000 in negative returns. Because Maryland does not withold taxed from my pension it is alarming and potentially devastating. 

[dmertz]

Something to consider: Remember that the Maryland pension exclusion limit is reduced by the amount of your Social Security benefits.  If your Social Security benefits exceed the full pension exclusion limit, none of your pension income is excludible because the exclusion limit is reduced to zero.

[user17717779336]

I am aware of that. Have done it before. Did 13a and entered results on 502 r. I just wanted to know why TT did not catch it. Was it Mr or TT 

[user17717779336]

I had to file manually. TT could use some work to make it really user friendly. I have been doing taxes since 1972, for myself and others. I switched to TT when it first came out and have been using it ever since. I physically can’t write legibly and appreciated the printed entries. I have been using Quicken for the same reasons.