Maryland military retirement pay income tax deduction maximum

[francis-wright1]

According to the Maryland 2018 tax code, the maximum amount of military retirement income that can be subtracted from income is $15,000 for taxpayers over age 55 on Form 502SU. However, Turbo Tax limited this subtraction to $8586 with an explanation that it is the Maximum Allowed (after Social Security/Railroad Retirement). This is not correct. How can we fix this Turbo Tax error?

[TerryA]

Are you referring to Form 502SU line 'u'? And not the pension exclusion on Form 501 line 10a or 10b? Those are different things and you are correct that the military retirement on 502SU line 'u' should be the lesser of $15K or your total military retirement $$.

It sounds like you are referring to what happens to a retired Correctional officer/Law enforcement/etc. pension adjustment when there is also SS benefits received and that goes on Form 502 line 10b.

I'm going to put in the Answer box how to tell TurboTax that a 1099-R is military retirement. That will get you the proper deduction you are asking about.

[TerryA]

Be sure you have made the entry outlined below to let TT/Maryland know that the 1099-R is military retirement:

You have to make a certain entry in one of the federal 1099-R pension screens. Go to that 1099-R:

If the Online version has the "Find" feature, just type "1099-R" in there and click "Find", then click "Jump to 1099-r". Or drill down like this:
Federal Taxes tab (this is the Deluxe version path)
Wages & Income
I'll choose what I work on
Under Retirement Plans and SS, update IRA, 401(k), Pension...
Edit that 1099-R (this is where "Find" takes you)
Be sure you have MD in Box 13
Click through 3-4 screens until you get to
Where Is This Distribution From? Select Active duty military retirement. That tells TT/Maryland to compute that deduction for you.

[johnbrown65hokie]

i do not see where I have received credit  on MD Return for the $15000 military retirement  

[BillM223]

@johnbrown65hokie

(Almost immediately) after you entered the 1099-R for your military retirement income, did you indicate that this 1099-R was active duty military retirement? That is how the Maryland return knows to give you the $15,000 subtraction.

NOTE: this is normally on form 502SU on line u. However, if there aren't many subtractions on the 502SU, the state instructions permit us to not include the 502SU but to enter this subtraction directly on form 502 on line 13, with the code(s) in the little boxes.

Does this address your issue?