Solved: Maryland excludes up to 29000 of pension income from state taxes. How do I identify pension income that may be excluded from MD income tax?
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New Member

Maryland excludes up to 29000 of pension income from state taxes. How do I identify pension income that may be excluded from MD income tax?

Maryland excludes up to 29000 of pension income from state taxes. There was no way to indicate this when I entered the 1099-R. Where do I do this in Turbotax Permier?
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Level 15

Maryland excludes up to 29000 of pension income from state taxes. How do I identify pension income that may be excluded from MD income tax?

In preparing your MD tax return, TurboTax goes by the fact that the Form 1099-R has code 7 and not code D in box 7 and does not have the IRA/SEP/SIMPLE box marked.

Note that your exclusion amount is $30,600 minus whatever amount of Social Security income you received.  If you received $30,600 or more of Social Security income, you receive no pension exclusion.  ($29,900 was the maximum pension exclusion for 2017.)

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5 Replies
Level 15

Maryland excludes up to 29000 of pension income from state taxes. How do I identify pension income that may be excluded from MD income tax?

In preparing your MD tax return, TurboTax goes by the fact that the Form 1099-R has code 7 and not code D in box 7 and does not have the IRA/SEP/SIMPLE box marked.

Note that your exclusion amount is $30,600 minus whatever amount of Social Security income you received.  If you received $30,600 or more of Social Security income, you receive no pension exclusion.  ($29,900 was the maximum pension exclusion for 2017.)

View solution in original post

New Member

Maryland excludes up to 29000 of pension income from state taxes. How do I identify pension income that may be excluded from MD income tax?

 

My USG 1099-R has distribution code 7.  Are Code 7's excluded from the pension exclusion?

Employee Tax Expert

Maryland excludes up to 29000 of pension income from state taxes. How do I identify pension income that may be excluded from MD income tax?

Code 7 means it is a normal distribution. 

Can you explain what you mean by "pension exclusion"? 

Is this for your Maryland state return? 

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New Member

Maryland excludes up to 29000 of pension income from state taxes. How do I identify pension income that may be excluded from MD income tax?

On my 1099-R, if there is a 7 in the box rather than a D, does that meant that the turbo Tax program will automatically do the right pension exclusion or do I need to do something to ensure that it is done properly?

Employee Tax Expert

Maryland excludes up to 29000 of pension income from state taxes. How do I identify pension income that may be excluded from MD income tax?

No.  You got it.  Enter the 1099-R information from your form with code 7.  When you go through your MD interview you will see the pension exclusion.  

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