Skip to main content
January 15, 2024
Solved

Maryland does not tax Social Security Benefits - why is my Maryland rebate reduces when SSA-1099 benefits are added to income in the Federal return?

  • January 15, 2024
  • 2 replies
  • 0 views
My Maryland rebate reduces when SSA-1099 benefits are added to income in the Federal return.
Best answer by dmertz

Unless you have not reported any Forms 1099-R for distributions from employer plans, the behavior that you are observing is likely the result of the limit for the Maryland pension exclusion being reduced by the amount of the individual's Social Security income, resulting in an increase in the amount of taxable pension distributions.  It's not that the Social Security payments themselves are being taxed.  The Maryland pension exclusion appears on Form 502 line 10a.

2 replies

Employee
January 15, 2024

Check to see if you entered your SSA1099 in the right place on your federal form.

 

 Go to Federal> Wages & Income>>Retirement Plans and Social Security  (SSA1099 and 1099RRB) to enter your SSA1099.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
dmertzAnswer
Employee
January 15, 2024

Unless you have not reported any Forms 1099-R for distributions from employer plans, the behavior that you are observing is likely the result of the limit for the Maryland pension exclusion being reduced by the amount of the individual's Social Security income, resulting in an increase in the amount of taxable pension distributions.  It's not that the Social Security payments themselves are being taxed.  The Maryland pension exclusion appears on Form 502 line 10a.