How do I enter Maryland pension exclusion for retired military

Forum|Forum|1 year ago
February 2, 2025
2 replies
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My retired military pension exclusion is not showing when the exclusion amount is displayed

DaveF1006

Yes. I have tested Turbo Tax and in my test return, the military exclusion appears. Here is how you qualify for the exclusion according to this State of Maryland source.

You were 65 or older or totally disabled, or your spouse was totally disabled, on the last day of the tax year; and
You included on your federal return income received as a pension, annuity or endowment from an “employee retirement system.” A traditional IRA, a Roth IRA, a simplified employee plan (SEP), a Keogh Plan or an ineligible deferred compensation plan does not qualify.

If you qualify, then you may have missed a screen that asks if this is active or reserve military retirement. This screen will be in a follow-up screen after you enter your 1099R. This is what the screen looks like. Make sure you place a check mark that indicates this is active or reserve military retirement.

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klingcs

I am seeing that screen you shared. I'm using Premier and I see you're in Home & Bus. 'But I wouldn't think that would make a difference. After I enter the 1099-R, the next screen asks about IRA to which I answered NO, and then a question about Public Safety Officer and then the next screen asks if distribution is from a Qualified or Non-Qualified plan. If I check "Non-Qualified", it doesn't save that and takes me back to the 1099-R summary. Do you have any suggestions on how to get the exclusion to the MD form? Thanks!

DaveF1006

Go to the 1099R summary screen in your federal return and delete the 1099R entry for the 1099R. After doing this:

In the summary screen, select add 1099 R
Enter the 1099 R. make sure the box that indicate this is a IRA is unchecked.
Say the Box is blank for the IRA
Say no to this being a Public Service officer.
The next screen should say "select your State" Here you will select Maryland. See first screenshot
Next asks where is this distribution from. Indicate it is active or reserve military retirement and distribution amount. That screen is posted in my previous post.
Then finish out the section.

Once done, the military retirement amount is excluded from your Maryland taxable income. If you have Turbo Tax premier, you should be able to verify this in the pension worksheet. Go to the forms mode in your return and look for pension worksheet and it should be listed in Line 1D. Here is how the screen in Line 5 above should appear to you.

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BillM223

No, the amount of the Maryland distribution will be entered as part of the data entry of the 1099-R. Normally, you would expect there to be an entry in box 16 (Maryland distribution) which will be equal to box 1, in Box 15, an "MD" followed by a number, and in Box 14, any income tax of Maryland withheld by the pension administrator. This will all flow to the Maryland return.

And, yes, these screens in the 1099-R interview should carry to the state return. Tell me, did you not see the special screen for "Select your State"? You must select Maryland to start this process off for the state.

@jennyjohn8484

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