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I am 100 service connected disable veteran and want to include the retirement pay income tax deduction per state of Maryland. Need help to include this exempt deduction.

According to https://veterans.maryland.gov/maryland-tax-benefits/

Military service connected disabled veteran allow to subtract up to $5000 from their retirement income for State tax filing. I met this criteria but could not find anywhere on Turbo Tax to include this exemption. Please advise!

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1 Reply
AndyM
New Member

I am 100 service connected disable veteran and want to include the retirement pay income tax deduction per state of Maryland. Need help to include this exempt deduction.

This is from the TurboTaxOnline search:

Where do I enter maryland military retirement reduction of income?

It should go on form 502SU line u.  How can I enter the 5,000 into line u of 502SU?  It will not let me edit the line.

TurboTax will take care of this automatically.

Maryland will exclude:

Up to $5,000 of military retirement income received by a qualifying individual during the tax year if the taxpayer has not yet attained the age of 65; or up to $10,000 of military retirement income received by a qualifying individual if the taxpayer is age 65 or over.

After the 1099-R entry screen (on the federal side):
  1. On the Where is this Distribution From screen, mark the radio button for Military Pension or Active duty military retirement [depending on the version of TT]. 
  2. Enter the distribution amount (if it's not already there) and click Continue.
  3. On the screen Was This Distribution from a Qualified Plan, mark the blue Non-Qualified Plan box.

TurboTax will calculate the exclusion on your MD return.

By: TurboTaxIrene

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