Maryland state form 502SU missing

[gjgogol]

I have some subtractions from income on my 2023 return and TT is not producing a MD state form 502SU.  I checked my 2022 return for comparison and there is a Form 502SU.  Am I doing something incorrectly or Is there a fix for this?

[RachelW33]

Please clarify what subtractions should be on your Form 502SU?

[gjgogol]

@RachelW33Capital gains from sale or exchange of U.S. Government obligations

[RachelW33]

As noted in the Form 502 Instructions on Page 8, if you only have one of the subtractions, then Form 502SU is not needed.  In that case, the subtraction would just be entered on Line 13 of Form 502 with the appropriate Code letter.

If this is not the case for you and you have other subtractions in addition to the sale or exchange of U.S. Government obligations, please respond back so that I can look into it further.

[gjgogol]

@RachelW33I also had interest and dividends from U.S. obligations

[RachelW33]

Interest and dividends from U.S. Obligations and capital gains from the sale or exchange of U.S. Government obligations both use Code ab for the subtraction.  

On your MD Form 502 Line 13, you should see the total of them subtracted with Code ab notated to the left.

@gjgogol 

[gjgogol]

@RachelW33where in TT step by step instructions do i enter both numbers? Wonder if I missed a step in TT?

[RachelW33]

If you have a Form 1099-INT that reports interest in Box 3, the amount will automatically be included in the MD Form 502 Code ab subtraction.

If you have a Form 1099-DIV that includes U.S. Government Interest, after you enter it, you need to check the box that "a portion of these dividends are U.S. Government interest".  Next, click continue and enter the amount.

Next, when walking through the preparation of your Maryland return, you will come to the screen Capital Gains from U.S. Government obligations are Tax Free. Here you will enter the amount.

Finally, on your MD Form 502 Line 13, you should see the total of your Interest and dividends from U.S. Obligations and capital gains from the sale or exchange of U.S. Government obligations subtracted with Code ab notated to the left.

[gjgogol]

@RachelW33Perfect!  Thank you!

[mdfiler355]

Hi, 

I went through all the steps of the Maryland return, but did not come across this page listed below. How to get to it and enter the capital gains amount form us gov obligations?  Is this under income or deduction? Thank you!

"Next, when walking through the preparation of your Maryland return, you will come to the screen Capital Gains from U.S. Government obligations are Tax Free. Here you will enter the amount...."

[gjgogol]

@RachelW33Just like the other poster asked...you stated, "Next, when walking through the preparation of your Maryland return, you will come to the screen Capital Gains from U.S. Government obligations are Tax Free. Here you will enter the amount."  I cannot locate that page.

[RachelW33]

It is handled a bit differently in TurboTax if the capital gains are actually capital gains distributions from a mutual fund reported on Form 1099-DIV rather than a sale reported on Form 1099-B.  For mutual fund Capital Gains distributions that include US Government obligations reported on Form 1099-DIV, you would include that amount on the screen that asks for US Government Interest along with the amount of US Government interest reported in Box 1. (screenshot in my answer above).

@gjgogol 

@mdfiler355 

[mdfiler355]

deleted

[gjgogol]

@RachelW33Can't seem to find that page that you have a screenshot of.

[RachelW33]

I am not sure why this screen is not popping up for you in the Maryland interview. @mdfiler355 @gjgogol 

In order for me to take a closer look, it would be helpful for you to send me a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions: 

If you are using TurboTax Online: 

1. Sign into TurboTax and open your return
2. On the left side of the program select Tax Tools
3. Next, select Tools below Tax Tools
4. A window will pop up which says Tools Center
5. On this screen, select the Share my file with Agent link
6. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number.
7. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.

Here are the instructions if you are using TurboTax CD/Download:
 

1. Click on Online in the top left menu of TurboTax CD/Download for Windows
2. Select 'Send Tax File to Agent'
3. You will get a pop-up with your Token number 
4. Reply to this thread with your Token number