According to the Maryland Department of Revenue, you can subtract up to $12,500 of your military retirement income (including death benefits) from your federal adjusted gross if under the age of 55. If you are age 55 or older, you will be able to subtract up to $20,000 of the military retirement income.
When you create your Maryland return, the program will prompt you to review the Pension Exclusion page. You will need to defer this page and access the Military Retirement Income Subtraction page. To access this entry within your Maryland return, please go to:
- State Section
- Edit Maryland Return
- Subtractions From Income
- Military Retirement Income Subtraction
- Enter amounts, then click "continue" to save entry