For eligible retirees, the 1099-R form contains the amount of your tax deferred contributions made under the Employer Pick-up Program.
The Employer Pick-up Program provides for the deferral of federal taxes when the contributions are made, but makes them taxable when received in the pension. Since this program defers only federal taxes at the time the contributions are made, state income taxes were deducted.
Most members participated in the Employer Pick-up Program. The taxpayers participation was determined by whether their employer elected to participate and by whether their pension plan required them to make employee contributions.
To enter the subtraction amount, from the main menu of the Maryland return select;
- Total Maryland Adjusted Gross Income
- Subtractions from Income
- Other Subtractions from Income
- Other Subtractions from Income
- New
- Select Code R
Additional Information: