Maryland capital gains deduction

Forum|Forum|5 years ago
February 28, 2021
1 reply
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I am working on my 2020 Maryland state taxes, and I have arrived at the page labeled "Capital Gains on U.S. Obligations are Tax Free". There are two boxes on this page, one lists the federal total capital gains and the other (blank) for Total From U.S. Obligations. Reading the associated Turbotax help page and the Maryland bulletin, I am unclear on what gets entered here.

From the Maryland bulletin, the dividends and capital gains from U.S. obligations are deductible although the page only indicates capital gains. Is that an error?

ThomasM125

Level 15

You will just need to enter your capital gains associated with US securities that are exempt from tax on the page where that information is requested.

After you enter your dividends from form 1099-DIV, you will see a screen on which you are asked if any of the dividends are from US obligations, and when you say yes to that question, you will be asked to enter the state they are exempt from. Once you answer those questions accurately, your dividends on US obligations will automatically be reported as exempt income on your Maryland return.

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dereklewis191Author

Level 2

Most of the fund distributions for US obligations are listed as “income” not capital gains or interest. Would I assume this was a dividend or capital gain entry?