a. Payments from a pension system to firemen and policemen for job-related injuries or disabilities (but not more than the amount included in your total income)
b. Net allowable subtractions from income from pass-through entities not attributable to decoupling.
c. Net subtractions from income reported by a fiduciary
d. Distributions of accumulated income by a fiduciary, if income tax has been paid by the fiduciary to the State (but not more than the amount included in your total income)
e. Profit (without regard to losses) from the sale or exchange of bonds issued by the State or local governments of Maryland
f. Benefits received from a Keogh plan on which State income tax was paid prior to 1967.
g. Amount of wages and salaries disallowed as a deduction due to the work opportunity credit allowed under the Internal Revenue Code Section 51
h. Expenses up to $5,000 incurred by a blind person for a reader, or up to $1,000 incurred by an employer for a reader for a blind employee
i. Expenses incurred for reforestation or timber stand improvement of commercial forest land
j. The amount added to taxable income for the use of an official vehicle by a member of a state, county or local police or fire department. The amount is listed separately on your W-2
k. Up to $6,000 in expenses incurred by parents to adopt a child with special needs through a public or nonprofit adoption agency; up to $5,000 for adoption of a child without special needs
l. Purchase and installation costs of certain enhanced agricultural management equipment.
m. Deductible artist’s contribution. Complete and attach Form 502AC
n. Payment received under a fire, rescue, or ambulance personnel length of service award program that is funded by any county or municipal corporation of the State
o. Value of farm products you donated to a gleaning cooperative.
p. Overseas military subtraction (Use worksheet from Instruction 13.)
q. Unreimbursed vehicle travel expenses. Complete and attach Form 502V
r. Amount of pickup contribution shown on Form 1099R from the State retirement or pension systems included in federal adjusted gross income
s. Amount of interest and dividend income (including capital gain distributions) of a dependent child that is included in the parent’s federal gross income under the Internal Revenue
Code Section1(g)(7)
t. Relocation and assistance payments received from the State of Maryland under Title 12 Subtitle 2 of the Real Property Article
u. Military Retirement Income. Individuals at least 55 years of age on the last day of the taxable year may claim up to $15,000 of military retirement income, including death benefits, received in
the taxable year.
Individuals under the age of 55 on the last day of the taxable year may claim up to $5,000 of military retirement income received in the taxable year
va. The Honorable Louis L. Goldstein Volunteer Fire, Rescue and Emergency Medical Services Personnel Subtraction Modification Program.
vb. The Honorable Louis L. Goldstein Volunteer Police Personnel Subtraction Modification Program.
w. Unreimbursed expenses incurred by a foster parent on behalf of a foster child
xa. Up to $2,500 per contract purchased for advanced tuition payments made to the Maryland Prepaid College Trust.
xb. Up to $2,500 per account contributor per beneficiary of the total of all amounts contributed to investment accounts under the Maryland College Investment Plan
xc. Any amount included in federal adjusted gross income as a result of a distribution to a designated beneficiary from a Maryland ABLE account, unless it is a refund or non-qualified distribution.
xd. Up to $2,500 per ABLE account contributor per beneficiary of the total of all amounts contributed under the Maryland ABLE Program
xe. An amount included in federal adjusted gross income contributed by the State into an investment account under §18-19A-04.1 of the Education Article during the taxable year
y. Any income that is related to tangible or intangible property that was seized, misappropriated or lost as a result of the actions or policies of Nazi Germany towards a Holocaust victim
z. Expenses incurred to buy and install handrails in an existing elevator in a qualified healthcare facility or other building in which at least 50% of the space is used for medical purposes
aa. Payments from a pension system to the surviving spouse or other beneficiary of a law
enforcement officer or firefighter whose death arises out of or in the course of their employment aa.
ab. Income from U.S. Government obligations (See Instruction 13.)
bb. Net subtraction modification to Maryland taxable income when claiming the federal depreciation allowances from which the State of Maryland has decoupled. Complete and attach Form
cc. Net subtraction modification to Maryland taxable income when using the federal special 2-year carryback (farming loss only) period for a net operating loss under federal law compared to Maryland
taxable income without regard to federal provisions. Complete and attach Form 500DM
cd. Net subtraction modification to Maryland taxable income resulting from the federal ratable inclusion of deferred income arising from business indebtedness discharged by reacquisition of
a debt instrument. Complete and attach Form 500DM.
dd. Income derived within arts and entertainment district(s) by a qualifying residing artist. Complete and attach Form 502AE
dm. Net subtraction modification from multiple decoupling provisions. Complete and attach Form 500DM
dp. Net subtraction decoupling modification from a pass-through entity. Complete and attach Form 500DM. See Administrative Release 38
ee. Amount received as a grant under the Solar Energy Grant Program administered by the Maryland Energy Administration but not more than the amount included in your total income
ff. Amount of the cost difference between a conventional on-site sewage disposal system and a system that utilizes nitrogen removal technology, for which the Department of Environment’s
payment assistance program does not cover
hh. Net subtraction to adjust phase out of exemptions as a result of including U.S. obligations in your adjusted gross income
ii. Interest on any Build America Bond that is included in your federal adjusted gross income.
jj. Gain resulting from a payment from the Maryland Department of Transportation as a result of
the acquisition of a portion of the property on which your principal residence is located
kk. Qualified conservation program expenses up to $500 for an application approved by the Department of Natural Resources to enter into a Forest Conservation and Management Plan
ll. Payment received as a result of a foreclosure settlement negotiated by the Maryland Attorney General
mm. Amount received by a claimant for noneconomic damages as a result of a claim of unlawful discrimination
nn. Amount of student loan indebtedness discharged
oo. Up to $5,000 of income earned by a law enforcement officer residing in the Maryland political subdivision in which the officer is employed if the crime rate in that political subdivision exceeds
the State’s crime rate
pp. The value of any medal given by the International Olympic Committee, the International Paralympic Committee, the Special Olympics International Committee, or the International
Committee of Sports for the Deaf AND any prize money or honoraria received from the United States Olympic Committee from a performance at the Olympic Games, the Paralympic Games,
the Special Olympic Games, or the Deaflympic Games
qq. Amount of qualified principal residence indebtedness included in federal adjusted gross income that was allowable as an exclusion under the Mortgage Forgiveness Debt Relief Act of 2007, as
amended
rr. Up to $50,000 of compensation received by an individual during the taxable year in exchange for the sale of a perpetual conservation easement on real property located in Maryland. Any amount
included in federal adjusted gross income for the first $50,000 of compensation received by an individual during the taxable year in exchange for the sale of a perpetual conservation easement
on real property located in the State of Maryland
ss. Up to $7,500 of certain unreimbursed expenses paid or incurred attributable to the donation of certain organs for organ transplantation by a living individual
tt. Up to $250 of certain unreimbursed expenses paid or incurred by a full time K-12 teacher for the purchase of certain classroom supplies.
uu. Under the Racing and Community Development Act of 2021, this bill allows a subtraction modification for the redevelopment of the following: Laurel Park in Anne Arundel County, Pimlico Race Course in Baltimore City and Bowie Race Course Training Center in Prince George’s County. The subtraction is based on the gain recognized as a result of (direct or indirect) sale of property within Laurel Park, Pimlico Race Course or Bowie Race Course Training Center and for income recognized (directly or indirectly) by the state investment in these sites.
vv. The value of a subsidy for rental expenses received by a resident of Howard County under the “Live Where You Work” program of the Downtown Columbia Plan. For more information, visit www.marylandtaxes.gov.
ww. A qualified individual may subtract up to $5,000 per year of the amount contributed to a designated FirstTime Homebuyer Savings Account plus the earnings, including interest and other income on the principal, on such account. The First-Time Homebuyer Savings Account must be opened for the sole purpose of paying or reimbursing eligible costs for the purchase of a home in the State. The subtraction may be claimed for a period not to exceed 10 years, and total earnings may not exceed $50,000 during tha t 10-year period . For more in forma tion , visi t www.marylandtaxes.gov
xx. Amount of donations of certain disposable diapers, certain hygiene products, and certain monetary gifts made by a taxpayer during the taxable year to certain qualified charitable entities that are registered with the Comptroller. To qualify for this subtraction, you must enter the value of the donation and the name of each qualified charitable entity to which a donation was made. The Comptroller may verify the donation with the qualified charitable entity.
yy. Amount of unemployment compensation reported on 1099-G, Box 1, that was included in your FAGI for qualified taxpayers. You qualify for this subtraction if: • You received unemployment benefits from the Maryland Department of Labor; • You received unemployment benefits from the unemployment insurance program of any of the following jurisdictions, with which Maryland has a reciprocal taxation agreement: Pennsylvania, Virginia, West Virginia, and Washington, D.C.; • Total unemployment benefits included in your FAGI; • Your federal adjusted gross income does not exceed: $75,000 for single, married filing separately, and dependent filers; $100,000 for a married couple filing a joint return, or an individual filing as head of household or as a surviving spouse. For more information, visit www.marylandtaxes.gov.
zz. Amount of Coronavirus relief grant payment, relief loan, and any portion of the loan that was forgiven. You may find a list of eligible Maryland grant and loan programs at marylandtaxes.gov/RELIEFAct/index.php.