Where is Deduction of Military Retirement for Maryland State tax?.

[michael-renn3]

Military Retirement pay has some deduction from Maryland state tax.

[AmyC]

The deduction is on the MD 502SU. You create the deduction in the federal section when you entered your 1099R.

The questions and screens vary a bit by program but you can get the idea with these steps:

1. No to IRA
2. No to PSO
3. Select MD
4. Select active or reserve military retirement
5. From a Non-Qualified Plan
6. Continue

Form 502SU, Subtractions from Income states:

• Military Retirement Income. Individuals at least 55 years of age on the last day of the taxable year may claim up to $20,000 of military retirement income, including death benefits, received in the taxable year. 
• Individuals under the age of 55 on the last day of the taxable year may claim up to $12,500 of military retirement income received in the taxable year.