Inaccurate Maryland State Tax Calculation - Form 502U (Subtractions From Income)

Forum|Forum|2 years ago
April 15, 2024
1 reply
0 views

For MD Form 502SU (Subtractions from Income) , neither TT Deluxe Online nor Desktop permit selection of Item U (Military Retirement Income). Consequently, MD Retired Military clients are not able to subtract $20,000 (55 & over) or $12,500 (under 55) from MD form 502, resulting in MD State Income Tax Overpayment.

In reviewing past returns, it appears this flaw has been in place for several years; and I will be needing to complete amended returns for 2019-2022.

Request information on Maximum Refund Guarantee claim process.

DaveF1006

I just checked my Turbo Tax Desktop version and it seems to work quite well. I plugged in my name, DOB, into the program and received a $20,000/$12,500 military pension exclusion. I checked both for both over and under age 65 and the program worked in both cases. To verify, go Form 502R in your Maryland return and look at line 10.

In order for this to be reported properly, you need to indicate this is military retirement as you enter your 1099R information in the federal return. See the third screenshot on where this entry is made.