Flaw in program for MD Sate Taxes?????

[goldrusher]

I did my taxes including Maryland.  Md does not tax up to $34300 in pensions for those over 65 but the program  taxed mine as income. IS there a FLAW??? 

[AmyC · Accepted solution]

No. You need to follow the worksheet. MD does have a pension exclusion computation for up to $34,300. However,  the actual form shows social security subtracted from the $34,300 and then the lesser of that amount or your pension for the exclusion.  The updated 2022  Maryland Pension Exclusion has more information along with a link to the worksheet, Pension Exclusion Computation Worksheet  

[cynthiamitchellyahoo]

I have entered my retirement income as reported on CSA 1099R and expected to benefit from the Maryland Retirement exclusion but turbo tax is not applying the exclusion.  I am over 65 years of age and as a federal government retiree, I have no social security income.

[ErnieS0]

TurboTax does apply the exclusion. Your pension exclusion is listed as a subtraction on Form 502, line 10 if you are a Maryland resident.

Please feel free to reach out to TurboTax Community if you need additional help or click here for information on Turbo Tax Support. You can connect with a Live Agent over the phone and share your screen.

@cynthiamitchellyahoo 

[bilz]

You don't include the worksheet for pension exclusion if totally disabled and not yet 65.   Maryland law provides for both

[8243Jim]

When the system prints out the program for mailing, it does not include the Maryland Pension Exclusion Worksheet (13A). This will cause an audit and delay in receiving your return. You are able to call up this worksheet in forms and include it with your submission. Since I had this happen last year with another form, Iam careful to check to see if all of the needed forms are in the print que.