Maryland just inacted a new senior benefit over a certain age you are exempt from state taxes if under a money ceiling I thinl $150,000 for a joint return. Has anyone received any info on this, is there a certain process to follow should you notify (federal retirement) office to stop the deduction?
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If you no longer need fed/state taxes withheld from a pension then contact the pension plan administrator to fill in a new W-4P to change the withholding.
Trying to find out what the process will be for the coming tax year ,how will county taxes be effected, etc
NO, you are not "exempt" from state taxes...from the review's I've seen (like this one)
New 2022 Maryland Tax Relief Legislation Passed | SC&H Group (schgroup.com)
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It only appears to be a nonrefundable MD tax credit of up to $1000 (or $1750 if MFJ and both spouses are 65 or older). So if you normally have a MD tax liability more than $1000:$1750, you'll still owe them something. AND, many will still have to prepare and file MD tax forms, even if the $1000:$1750 credit reduces their taxes to zero. (Tax liability means the taxes calculated that you owe to MD.... BEFORE considering any withholding or estimated tax payments that were already paid in)
As far as your MD withholding on your pension(s) are concerned....depends on whether you normally have to pay extra to MD at tax time or not. Certainly, if you always get a MD refund, you could have your MD withholding reduced some (assuming your 2022 income is expected to be exactly the same as 2021)
Spot on. Read the bill. Simple explanation is tax credit 1000/1750 for single/mfj, for up fed adj gross income 100/150k, over 65 age. Not an adjustment to pension worksheet item. Hard limit at max income. Expires 5 years. MD budget must support but last 2 years had surpluses.
The MD senior tax credit is a non-refundable credit, but TurboTax is calculating and a refundable credit. Is there a problem with TurboTax for Maryland returns?
No. The senior care credit is a non-refundable credit up to $1000. What line on your Form 502 are you looking at that reports this being a refundable credit? I checked my program and the credit is reported correctly in lines 24 and 26 in Form 502 as well as part M in Form 502CR.
Thanks. Your input is appreciated.
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