According to the Maryland Department of Revenue, you will be able to subtract up to $5,000 of your military retirement income from your federal adjusted gross income before determining your Maryland tax. Beginning with tax year 2018, if you are age 55 or older, you will be able to subtract up to $15,000 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