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Military deduction error in MD state TurboTax

TurboTax has always applied the MD military retirement pension automatically when porting federal info into the State form.  Didn't happen this year (for tax year 2024).  I entered the 1099-R just as I did in 2023 and prior years; this year, it refuses to give the deduction.  Trying to 'force' the entry on the MD Form 502 only gives an error.  Help?!

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1 Reply
DMarkM1
Expert Alumni

Military deduction error in MD state TurboTax

Yes,  typically the MD subtraction for military retirement pay happens automatically based on your federal entries.  First check in "My Info" (Personal info) to ensure you have indicated you are military and retired.  Next go back through the 1099R entry in the "Retirements" topic in the "Wages and Income" tab.  

 

Once you have verified the form entries continue through the interview and you should encounter a page titled "Where is the distribution from?"  There you should select "Active or Reserve Military Retirement" verify/enter the 1099R distribution amount and any MD withholding amounts (leave blank if none).  

 

Now you should be able to see the subtraction in forms view (Desktop) MD form 502 line 13.  In online products you can select "Tax Tools" in the left hand menu and then "Tools" and "View Tax Summary".  You should select the "MD tax summary" in the left hand menu and see the "Subtractions from income" line that would include the pension deduction based on your age entered in "My Info" (Personal Info).  

 

As a reminder according to MD here, "...  you will be able to subtract up to $12,500, with an increase to the first $20,000 for individuals who are at least 55 years old on the last day of the taxable year, of your military retirement income from your federal adjusted gross income before determining your Maryland tax." 

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