Level 3

Maryland new deduction for employee retirement system.

Forum|Forum|3 years ago
April 1, 2023
2 replies
12 views

I have a client who is receiving her deceased husband's Retirement benefits from the city of Baltimore F & P. MD just added a new subraction code v for up to $15k on income from an employee retirement system that is attributable to service as a public safety employee. I am trying to research to see if she would be elibible for this deduction, as her husband was a public safety employee for Baltimore City Fire Department.

This topic has been closed for replies.

sjrcpa

Level 15

I don't think so. See Subtractions.

What's New for the Tax Year (marylandtaxes.gov)

It doesn't mention spouse.

The more I know the more I don’t know.

T

Terry53029

Intuit Community Champion

I would say yes.
v. Up to $15,000 in income from an employee retirement system that is attributable to service as a public safety employee for a taxpayer who is age 55 or
older on the last day of the taxable year. To qualify, you
must be a retired correctional officer, law enforcement officer, or fire, rescue, or emergency services personnel of
the United States, 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

sjrcpa

Level 15

I read that, too.

It says "you" and not spouse or surviving spouse

" To qualify, you must be a retired correctional officer, law enforcement officer, or fire, rescue, or emergency services personnel of the United States, Maryland, or a political subdivision of
Maryland."

The more I know the more I don’t know.

itonewbie

Level 15

I agree with Susan.

If you take a look at Md. Tax-General Code Ann. §10-209, which governs the new subtraction, there is no reference to the death of a taxpayer or the surviving spouse. The only reference to the entitlement in relation to a spouse is in subsection (b) where the spouse is totally disabled:

https://advance.lexis.com/documentpage/?pdmfid=1000516&crid=0664959b-7208-4fd5-92d2-26103412cf66&nodeid=ABIAALAACAACAAL&nodepath=%2FROOT%2FABI%2FABIAAL%2FABIAALAAC%2FABIAALAACAAC%2FABIAALAACAACAAL&level=5&haschildren=&populated=false&title=%C2%A7+10-209.+Subtractions+from+federal+adjusted+gross+income+%E2%80%94+Elderly+or+disabled+individuals%3B+law+enforcement+officers+or+fire%2C+rescue%2C+or+emergency+services+personnel.&config=014EJAA2ZmE1OTU3OC0xMGRjLTRlNTctOTQ3Zi0wMDE2MWFhYzAwN2MKAFBvZENhdGFsb2e9wg3LFiffInanDd3V39aA&pddocfullpath=%2Fshared%2Fdocument%2Fstatutes-legislation%2Furn%3AcontentItem%3A65TC-BD43-CGX8-0233-00008-00&ecomp=8gf5kkk&prid=a21eb46d-a518-4250-b4bf-d435a06507ff

In contrast, if you refer to §10-754, which is for the Senior tax credit that was added by the same House Bill 1468, there are clear references to surviving spouses in two subsections:

https://advance.lexis.com/documentpage/?pdmfid=1000516&crid=10ab04ba-b5c8-4dae-ad8e-86b1a07bf0b1&nodeid=ABIAALAAHADF&nodepath=%2FROOT%2FABI%2FABIAAL%2FABIAALAAH%2FABIAALAAHADF&level=4&haschildren=&populated=false&title=%C2%A7+10-754.+Tax+credit+for+residents+65+years+or+older+%E2%80%94+Amount+%E2%80%94+Limitations.&config=014EJAA2ZmE1OTU3OC0xMGRjLTRlNTctOTQ3Zi0wMDE2MWFhYzAwN2MKAFBvZENhdGFsb2e9wg3LFiffInanDd3V39aA&pddocfullpath=%2Fshared%2Fdocument%2Fstatutes-legislation%2Furn%3AcontentItem%3A65RM-PW53-CGX8-0156-00008-00&ecomp=8gf5kkk&prid=a21eb46d-a518-4250-b4bf-d435a06507ff

If there was an intention for a surviving spouse to benefit from the subtraction, there would have been no reason for §10-209 to not include such references.

---------------------------------------------------------------------------------Still an AllStar

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