Without examining your 2021 return or the bill you received from the State of Maryland, it may be that you did not qualify for the pension or retirement exclusion. To qualify you must have been 65 or older or totally disabled, or if married, your spouse must be totally disabled as of the last day of the tax year. In addition, a traditional IRA, a Roth IRA, a simplified employee plan (SEP), a Keogh plan, an ineligible deferred compensation plan or foreign retirement income does not qualify.
Per the State of Maryland, to be considered totally disabled, you must have a mental or physical impairment which prevents you from engaging in substantial gainful activity. You must expect the impairment to be of long, continued or indefinite duration or to result in your death. You must attach to your return a certification from a qualified physician stating the nature of your impairment and that you are totally disabled. If you have previously submitted a physician’s certification, attach your own statement that you are still totally disabled and that a physician’s certification was submitted before.
There are additional guidelines for a pension and retirement from a career as a retired correctional officer, law enforcement officer, or fire, rescue, or emergency services personnel.
If you need additional assistance, please provide more information so we can assist you further.
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