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New Member
posted Mar 8, 2022 8:31:36 AM

My husband and I have similar retirement incomes, but the Maryland Pension Exclusion is given only to me. Why is that?

We are filing jointly.

0 2 590
2 Replies
Expert Alumni
Mar 8, 2022 9:04:11 AM

The exclusion appears to be working in my mock return.  You might first review the qualifications for the exclusion:

  1. You were 65 or older or totally disabled, or your spouse was totally disabled, on the last day of the tax year; and
  2. You included on your federal return income received as a pension, annuity or endowment from an "employee retirement system." Please note that these include qualified defined benefit and defined contribution pension plans, 401(a) plans, 401(k) plans, 403(b) plans, and 457(b) plans.
  3. A traditional IRA, a Roth IRA, a simplified employee plan (SEP), a Keogh Plan or an ineligible deferred compensation plan does not qualify.

With these in mind, if both of you and both of your pensions meet the qualifications, go back to the "Retirement" topic and verify the entries including the follow question that identifies a qualified plan.

 

Revisit the MD state interview and "Edit" the income section and "Edit" the "MD pension exclusion" topic.  You  should see the breakdown of the exclusion.  Remember your social security is also subtracted from the maximum allowable exclusion for each of you.

 

 

Level 15
Mar 8, 2022 10:26:10 AM

The maximum Maryland pension exclusion for 2021 is $34,300 minus the amount of the individual's Social Security benefits.  If his Social Security benefits are more than $34,300, he gets no pension exclusion.