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Maryland Retirement Income

Forum|Forum|2 years ago
April 1, 2024
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In Turbotax, Maryland form 502 Line 10a (Pension Exclusion) is blank. However, form 502R Line 1 shows $80,080 for a pension (non-IRA) which is correct. Why doesn't some or all of this income get excluded on form 502 Line 10a? Turbotax did not fill out Part 6 in 502R and there is no 13A worksheet shown is the Turbotax Maryland forms.

SSA Benefits are supposed to be non-taxable in Maryland. In Maryland form 502 Line 11 (taxable social security benefits), Turbotax put $58,800. However, form 502R Line 9 Turbotax shows the correct SSA benefits of $49,450 (me) and $19,726 (spouse). Why isn't Line 11 in form 502 $69,176 ($49,450 + $19,726)? I don't see any calculation in Turbotax that shows how they came up with $58,800.

Best answer by RachelW33

The maximum allowable pension exclusion of $36,200 per taxpayer on your Maryland return includes your social security benefits. Because your social security benefits exceed $36,200, there won't be an additional subtraction for your pension.

Regarding the difference in social security benefits used on the Pension Exclusion Computation Worksheet and the amount subtracted on Line 11 of Form 502: The Maryland Pension Exclusion Worksheet uses the full amount of your social security benefits to calculate the pension exclusion because all of your benefits are non-taxable on your Maryland return. In your case, 85% of your social security benefits were taxable on your federal return, so that amount is subtracted on Line 11 of Form 502. In other words, the full amount of your social security benefits are not subtracted on Line 11 because only 85% of the benefits were included in your federal adjusted gross income (Line 1 of MD Form 502).

RachelW33Answer

The maximum allowable pension exclusion of $36,200 per taxpayer on your Maryland return includes your social security benefits. Because your social security benefits exceed $36,200, there won't be an additional subtraction for your pension.

Regarding the difference in social security benefits used on the Pension Exclusion Computation Worksheet and the amount subtracted on Line 11 of Form 502: The Maryland Pension Exclusion Worksheet uses the full amount of your social security benefits to calculate the pension exclusion because all of your benefits are non-taxable on your Maryland return. In your case, 85% of your social security benefits were taxable on your federal return, so that amount is subtracted on Line 11 of Form 502. In other words, the full amount of your social security benefits are not subtracted on Line 11 because only 85% of the benefits were included in your federal adjusted gross income (Line 1 of MD Form 502).

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