MD PENSION HELP

[TAXMAN]

I have a retired md policeman who is 67. with a pension from state of md. of 74000. I see new for MD this year that tp can take 15k exclusion and also the pension subtraction modification as long as we reduce his pension by the 15k. Does anyone have a take on this? I know in past years you could not do this.

[Abby Normal]

Subtraction for Public Safety Retirement Income

New for 2022: An individual taxpayer may now claim both the standard Pension Exclusion and the Subtraction for Retired Correctional Officer, Law Enforcement Officer, or Fire, Rescue, or Emergency Services Personnel. Claim the subtraction using code letter “v” on Form 502SU. (See Instruction 13 in the Maryland resident tax booklet.) Note: When claiming the standard pension exclusion, do not include any amount subtracted for public safety retirement income.

To qualify, you must be a retired correctional officer, law enforcement officer, or fire, rescue, or emergency services personnel of the United States, the State of Maryland, or a political subdivision of Maryland. Only subtract income that you included on your federal return as taxable income received as a pension, annuity, or endowment from an “employee retirement system” qualified under Section 401(a), 403, or 457(b) of the Internal Revenue Code.

https://www.marylandtaxes.gov/individual/income/filing/pension-exclusion.php

ATX should subtract the 15k from the total pension before calculating the regular pension exclusion.

[TAXMAN]

Thank you. I thought so but second opinions are always great.