It is permissible for one spouse to claim the standard Pension Exclusion and the other spouse to claim the Pension Exclusion for Retired Forest Rangers, Park Rangers, and Wildlife Rangers. If you are 65 or older on the last day of the calendar year, you are totally disabled, or your spouse is totally disabled, and you have received qualified pension income, you should complete the Pension Exclusion Computation Worksheet (13A) regardless of your prior work history. Note: An individual taxpayer may not claim BOTH the standard Pension Exclusion and the Pension Exclusion for Retired Forest Rangers, Park Rangers, and Wildlife Rangers. Pension Exclusion for Retired Forest Rangers, Park Rangers, and Wildlife Rangers To receive the benefit of the pension exclusion, transfer the amount from line 5 of the worksheet to line 10a of Form 502, and complete the remainder of your return, following the line-by-line instructions. Report all benefits received under the Social Security Act and/or Railroad Retirement Act on line 3 of the pension exclusion worksheet - not just those benefits you included in your federal adjusted gross income. A traditional IRA, a Roth IRA, a simplified employee plan (SEP), a Keogh Plan or an ineligible deferred compensation plan does not qualify.Ĭomplete the Pension Exclusion Computation Worksheet (13A) shown in Instruction 13 in the Maryland resident tax booklet.You included on your federal return income received as a pension, annuity or endowment from an 'employee retirement system.' These include qualified defined benefit and defined contribution pension plans, 401(a) plans, 401(k) plans, 403(b) plans, and 457(b) plans.You were 65 or older or totally disabled, or your spouse was totally disabled, on the last day of the tax year and.For calendar year 2023, the maximum pension exclusion is $36,200.

If you're eligible, you may be able to subtract some of your taxable pension and retirement annuity income from your federal adjusted gross income. If you are 65 or older or totally disabled (or your spouse is totally disabled), you may qualify for Maryland's maximum pension exclusion of $34,300* under the conditions described in Instruction 13 of the Maryland resident tax booklet.

2021 md income tax brackets