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drhamil
New Member

Maryland Pension Exclusion - i am retired serviceman with 30 yr and receive pension. Maryland allows exclsuion for age 65 or older. TurboTax program doesn;t seem to recognize this. Only first responders, etc.

 
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JohnW152
Expert Alumni

Maryland Pension Exclusion - i am retired serviceman with 30 yr and receive pension. Maryland allows exclsuion for age 65 or older. TurboTax program doesn;t seem to recognize this. Only first responders, etc.

If you're eligible and you input your information correctly, you should be receiving the exclusion.

 

First, verify that you're eligible.  According to Line 10a, PENSION EXCLUSION in the Maryland 2023 State & Local Tax Forms & Instructions:

You may be able to subtract some of your taxable pension and retirement annuity income. This subtraction applies only if: 

a. You were 65 or over or totally disabled, or your spouse was totally disabled, on the last day of the tax year, AND 

b. You included on your federal return taxable income received as a pension, annuity, or endowment from an “employee retirement system” qualified under Sections 401(a), 403 or 457(b) of the Internal Revenue Code. [A traditional IRA, a Roth IRA, a rollover IRA, a simplified employee plan (SEP), a Keogh plan, an ineligible deferred compensation plan or foreign retirement income does not qualify.]

See the Line 10a instruction for more details.

 

Next, double-check to see whether you've received the exclusion. To view your state tax summary in TurboTax Online:

  1. Select Tax Home in the left pane
  2. On the Hi, let's keep working on your taxes! screen, select the dropdown on the right side of the State Taxes box, then select StartContinue, or Review/Edit
  3. In the left pane, scroll down and select the dropdown to the right of Tax Tools
  4. Select Tools
  5. On the  Tools Center popup, select the View Tax Summary link
  6. Now, in the left pane, select MD Tax Summary

If you've received the pension exclusion, it will be included in Subtractions from income.  See below.

On Maryland Form 502, the exclusion will appear on line 10a. 

Feel free to post back if necessary.

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