How do I enter the credit for retired policeman in Maryland?

On the federal return after you enter the 1099-R for the pension, there are several more screens. When you see "Was [name] employed as a Public Safety Officer?", answer "yes". This answer will carry over to the Maryland return and use this in calculating the $15,000 exclusion.

Yes, it is true that when you return to the screen that asks about being a Public Safety Officer in the 1099-R interview, you will notice that your answer is set to "no" (this money didn't comes from employment as a public safety officer), even if you had set it to "yes" before. Just be sure that every time you go through this interview, that you reset this answer to "yes".

Note that if you go back to the Maryland return, you should see this pension exclusion, if you qualify for it. Who doesn't qualify?

• taxpayers under 55, even if on retirement.
• taxpayers who are 65 and older, or who are disabled or have a spouse who is disabled.

If you're under 55, you don't get the $15,000 exclusion at all

If you are between 55 and 64, then you get the $15,000 police pension exemption.

If you are 65 or older or either you or your spouse is disabled, then you get the $30,600 exclusion instead of the $15,000 exclusion.

See this Maryland FAQ.