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Your Maryland state pickup contribution will be reported as part of your Form 1099-R and will appear as a subtraction on your state return.
Enter your Maryland pickup contribution in line 17 of your 1099-R. TurboTax will ask Where is your distribution from? Select Pickup contribution.
In the Maryland section of TurboTax, you will see a screen Here's the income that Maryland handles differently.
Under Retirement, click Start next to Pickup Contribution Subtraction.
Say Yes to Pickup Contribution Adjustment and enter any excess pickup contribution(s) from 2020.
For more info see: Administrative Release No. 21
MD state says this income has already been taxed - which it has. This does not result in any decrease in my MD taxable income. Placing the amount in Line 17 results in treating the pick-up as a tax payment, not a tax deduction. Turbotax needs to clarify how the heck I can declare our Pick-Up Contribution portion as untaxable in Maryland. Maryland says to put in on a Form 502SU.. fat chance on that one... I entered it as a "pickup" on the Turbotax Fed form and there is no deduction of taxable income on my MD form.
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