How do I get pension exclusion for disability income to record on line 10a of form 502 for Maryland for 2022?

[minguillo0]

We file as married filing jointly. My husband is 100% totally and permanently disabled, receives VA disability and Social Security Disability too. I am retired and receive a pension and social security retirement. Based on the instructions and contact with Maryland, we are eligible for the exclusion however the worksheet is only allowing the exclusion and transferring the income pension on part 2 -Forest/Par/Wildlife Ranger and not part one for disability and not allowing the carryover to Maryland form 502. the form is hardcoded, and I am not able to make the change. Please assist.

[ThomasM125]

In the federal section of TurboTax, after you enter your disability income reported on a Form 1099-R with code 3 in box 7 (disability), you will be asked the minimum age you could retire at if you had not become disabled. Benefits you receive before that age are considered wages as opposed to pension benefits and will be treated as such on your Maryland tax return. So you need to make sure you answer that question correctly.

If you are at or over the minimum retirement age, then you will see this screen in TurboTax and that will prompt part one of the Pension Exclusion Computation Worksheet to be populated, which will give you the pension exclusion in Maryland:

[minguillo0]

Thanks for answering, but I need more information. My spouse is 100% permanently disabled and receives VA disability payments which are not taxable. The other income he receives is social security disability and the SS1099 does not specify disability payments. Aside from those two he does not receive any other income. I, on the other hand, receive social security retirement benefits and a retirement pension benefit from my past employer. According to the information on the Maryland exclusion, as his spouse I qualify for the exclusion but when I view the forms and add/use the worksheet for the Maryland exclusion, it fills in information on section 2 and not section 1 which is where I have to. Please assist.

Thanks 

[DaveF1006]

As you work in your Maryland s state return. there should be a pension exclusion automatically calculated. To troubleshoot your error, I prepared a mock return and entered a 1099R.  Here is the result of the pension worksheet and an illustration that it was properly recorded in Section 1.