Maryland State Retirement and Pension System pickup contribution as a Delaware Resident

I moved to Delaware a year ago and I receive income from the Maryland State Retirement and Pension System. Previously, as a Maryland resident, I paid Maryland income taxes on my contributions to the pension system while employed. If I were filing taxes as a Maryland resident, I would be able to exclude pension income up to the amount of the "pick-up contribution." Can I exclude the pick-up contribution from DE or am I stuck paying state income taxes on this income again? I realize I can take the DE pension exclusion of either $2,000 or $12,500 based on age.

849

Expert Alumni

Mar 7, 2024 5:55:56 AM

Delaware taxes whatever amount the IRS taxes. They do not take into consideration what you may have paid to another state. No, you cannot exclude the contributions you paid taxes on to Maryland.

Delaware Personal Income Tax

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Maryland State Retirement and Pension System pickup contribution as a Delaware Resident