Beginning in the 2022 tax year, a Maryland taxpayer age 55 or older can subtract up to $15,000 of retirement income attributable to service as a public safety employee. In this context, a public safety employee is someone who works as a correctional officer, a law enforcement officer, or in the fire, rescue, or emergency services.
The retirement income must be included as taxable income in the federal return, and it must come from a a retirement plan qualified under IRC section 401(a), 403 or 457(b).
To enter this subtraction in the Maryland resident return in TaxSlayer Pro, from the main menu of the Maryland return select:
- Total Maryland Adjusted Gross Income
- Subtractions from Income
- Other Subtractions from Income
- Other Subtractions to Income - Select New.
- V. Up to $15,000 in income attributable to service as a public safety employee if 55 or older - Select this, then enter the amount of the subtraction.
Note: If the taxpayer also qualifies to claim the pension exclusion, be sure to reduce the taxable pension and annuity total in the pension exclusion calculation by the amount subtracted here.
Additional Information: