Maryland Additions to Income
There are two Additions to Maryland Income that are common and which are handled by Taxslayer by making appropriate entries on the federal return. They are:
- Interest that is exempt on the federal return but not on the MD return because the interest is from non-Maryland (and other select jurisdictions) state or local bonds.
- The federally exempt interest amounts will be entered as Exempt Interest from
- Block 8 of 1099INT
- Block 11 of 1099DIV
- Jurisdictions Taxable in MD: Taxable in Maryland List
- Non-Taxable in MD: Not Taxable in Maryland List
- At the bottom of the interest input screen for the Federal return, follow the instructions to add Maryland taxable interest back for the MD return.
- The federally exempt interest amounts will be entered as Exempt Interest from
- Maryland State Pickup
- Unlike many retirement-savings instruments, Maryland does not defer taxes on contributions to its state retirement funds. So, while the contributions on the W2 will be non-taxable on the federal return, they will be taxable on the Maryland return.
- This is accomplished in Taxslayer by faithfully entering the MD State Pick-up amount from Block 14 of the W2 into the W2 input screen.
- When the retirement funds are distributed, the prorated contribution amounts will not be taxable in Maryland. The amount that can be subtracted will be provided in Box 19 of the 1099-R. See “Subtractions”.
- There are 22 other additions to Maryland income which are far less common. If you do encounter one of them, they are entered on the Maryland return under “Additions to Income” in Taxslayer using the code for the item. Maryland Additions to Income List
TXLNX 8/13/2023