Maryland employers can participate in the Employer Pick-up Program that defers federal taxes on pension plan contributions for employees while working. Once the taxpayer receives their pension, it will be considered federally taxable.
The Employer Pick-up Program only defers federal taxes; state income taxes are still deducted. To avoid paying taxes twice, the state retirement pick-up amount should be subtracted from the Maryland individual tax return.
To enter the state retirement pick-up in TaxSlayer ProWeb, from the Maryland Return menu select:
- Subtractions from Income
- Other Subtractions from Income - In the dropdown menu, select R Pickup Contribution on 1099R.
Additional Information:
Maryland State Tax Information
MD: Understanding your 1099-R Tax Form
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