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Maryland Other Subtractions

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Maryland Other Subtractions


a. Payments from a pension system to firemen and policemen for job related injuries or disabilities (but not more than the amount of such payments 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 of such income 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

f. Benefits received from a Keogh plan on which State income tax was paid prior to 1967. Attach statement.

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. Qualifications and instructions are on Form DNR393, available from the Department of Natural Resources, telephone 410-260-8531.

j. 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 stated separately on your W-2 form.

k. Up to $6,000 in expenses incurred by parents to adopt a child with special needs through a public or nonprofit
adoption agency and up to $5,000 in expenses incurred by parents to adopt a child without special needs.

l. Purchase and installation costs of certain enhanced agricultural management equipment as certified by the Maryland Department of Agriculture. Attach a copy of the certification.

m. Deductible artist’s contribution. Attach Maryland 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 as certified by the Maryland Department of Agriculture.
Attach a copy of the certification.

p. Up to $15,000 of military pay included in your federal adjusted gross income that you received while in the active service of any branch of the armed forces and which is attributable to service outside the boundaries of the U.S. or its possessions. To compute the subtraction, follow the directions on the MILITARY OVERSEAS INCOME WORKSHEET (13B). If your total military pay exceeds $30,000, you do not qualify for the subtraction.

q. Unreimbursed vehicle travel expenses for:

1. A volunteer fire company;
2. Service as a volunteer for a charitable organization whose principal purpose is to provide medical, health or
nutritional care; AND
3. Assistance (other than providing transportation to and from the school) for handicapped students at a Maryland
community college. Attach Maryland Form 502V.

r. Amount of pickup contribution shown on Form 1099R from the state retirement or pension systems included in federal
adjusted gross income. The subtraction is limited to the amount of pickup contribution stated on the 1099R or the
taxable pension, whichever is less. Any amount not allowed to be claimed on the current year return may be carried
forward to the next year until the full amount of the State pickup contribution has been claimed.

s. Amount of interest and dividend income (including capital gain distributions) of a dependent child which the parent
has elected to include in the parent’s federal gross income under Internal Revenue Code Section 1(g)(7).

t. Payments received from the State of Maryland under Title 12 Subtitle 2 of the Real Property Article (relocation and assistance payments).

u. Up to $5,000 of military retirement income received by a qualifying individual during the tax year. To qualify, you must have been a member of an active or reserve component of the armed forces of the United States, an active duty member
of the commissioned corps of the Public Health Service, the National Oceanic and Atmospheric Administration, or
the Coast and Geodetic Survey, a member of the Maryland National Guard, or the member’s surviving spouse or exspouse.

v. The Honorable Louis L. Goldstein Volunteer Police, Fire, Rescue and Emergency Medical Services Personnel Subtraction Modification Program. $3,750 for each taxpayer who is a qualifying volunteer as certified by a Maryland fire, police, rescue or emergency medical services organization. $3,750 for each taxpayer who is a qualifying member of the U.S. Coast Guard Auxiliary or Maryland Defense Force as certified by these organizations. Attach a copy of the certification.

w. Up to $1,500 of unreimbursed expenses that a foster parent incurs on behalf of a foster child. The foster parent
must be approved by a local department to provide 24-hour care for a foster child in the house where the foster parent resides. A treatment foster parent licensed by a child placement agency may not claim the subtraction modification. Foster parent includes a kinship parent. The expenses must be approved as necessary by the local department of social services or the Montgomery County Department of Health and Human Services and may not include an expense for which the foster parent receives an allowance or reimbursement from any public or private agency.

xa. Up to $2,500 per contract purchased for advanced tuition payments made to the Maryland Prepaid College Trust. See
Administrative Release 32.

xb. Up to $2,500 per account holder per beneficiary of the total of all amounts contributed to investment accounts
under the Maryland College Investment Plan and Maryland Broker-Dealer College Investment Plan. See Administrative
Release 32.

y. Any income of an individual 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. For additional information, contact the Revenue Administration Division.

z. Expenses incurred to buy and install handrails in an existing elevator in a health care facility (as defined in Section 19-114 of the Health General Article) 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.

ab. Income from U.S. Government obligations. Enter interest on U.S. Savings Bonds and other U.S. obligations. Capital
gains from the sale or exchange of U.S. obligations should be included on this line. Dividends from mutual funds that
invest in U.S. Government obligations also are exempt from state taxation. However, only that portion of the dividends
attributable to interest or capital gain from U.S. Government obligations can be subtracted. You cannot subtract income
from Government National Mortgage Association securities. See Administrative Releases 10 and 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 500DM. See Administrative Release 38. cc. Net subtraction modification to Maryland taxable income when the federal special 5-year carryback period was used for a net operating loss under federal law compared to Maryland taxable income without regard to federal

provisions. Complete and attach Form 500DM. See Administrative Release 38.

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. See Administrative Release 38.

dd. Income derived within an arts and entertainment district by a qualifying residing artist from the publication, production, or sale of an artistic work that the artist created, wrote, composed or executed. Complete and attach Form 502AE.

dm. Net subtraction modification from multiple decoupling provisions. See the table at the bottom of Form 500DM.

dp. Net subtraction decoupling modification from a passthrough entity. See Form 500DM.

ee. The 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 and a system that uses nitrogen removal
technology, for which the Department of Environment’s payment assistance program does not cover.

hh. Exemption adjustment for certain taxpayers with interest on U.S. obligations. If you have received income from U.S.
obligations and your federal adjusted gross income exceeds $100,000 ($150,000 if filing Joint, Head of Household,
or Qualifying Widow(er)), enter the difference, if any, between the exemption amount based on your federal
adjusted gross income and the exemption amount based upon your federal adjusted gross income after subtracting
your U.S. obligations using the EXEMPTION ADJUSTMENT WORKSHEET (13C).

hh. EXEMPTION ADJUSTMENT WORKSHEET (13C) Line 1: ENTER the exemption amount to be reported on line 19 of Form 502 using the chart in Instruction 10. (If you are a part-year resident, enter the amount to be reported on line 19 before it is prorated.)

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 under Internal Revenue Code Section 62(e).

nn. Amount of student loan indebtedness discharged due to total or permanent disability or death. Attach a copy of the notice stating that the loans have been discharged due to total and permanent disability or death.

oo. Amount of qualified principal residence indebtedness included in federal adjusted gross income that was allowable as an exclusion under the Mortgage Debt Relief Act of 2007, as amended. The subtraction cannot exceed $100,000 for taxpayers who file single or married filing separately, and cannot exceed $200,000 for married filing joint, head of household, or qualifying widow(er). Qualified principal residence indebtedness is debt used to buy, build or substantially improve your
principal residence, or to refinance debt incurred for those purposes but only if the debt is secured by the home.

Line 14. TWO-INCOME SUBTRACTION. You may subtract up to $1,200 if both spouses have income subject to Maryland tax and
you file a joint return. To compute the subtraction, complete the TWO-INCOME MARRIED COUPLE SUBTRACTION WORKSHEET

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Views: 764 Created on: Jun 15, 2013
Date updated: Aug 28, 2015
Posted in: STATES, Maryland

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