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February 19, 2024
Question

Turbo Tax does not show the new $20,000 over 65 military retiree

  • February 19, 2024
  • 1 reply
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Turbo Tax do not allow the $20,000 deduction that military retirees over 65 can take for there military retiree pay.  Additionally, in Turbo tax Social Security is included in the overall gross pay, when social security is not tax in Maryland.

    1 reply

    DMarkM1
    February 20, 2024

    The MD subtraction for military retirement income received by individuals under the age of 55 of up to $12,500 and for individuals at least 55 years old up to $20,000 under the "Keep Our Heroes Home Act" automatically generates from entries in the federal interview.   Re-check your entries in the federal interview per below.

     

    The subtraction for Social Security benefits is also automatic in TurboTax after entering your forms 1099-SSA in the federal interview.  

     

    1. First "Edit" your information in the "My Info" section
    2. Verify that you have indicated you are military and "retired military".
    3. "Continue"
    4. Next in the "Wages & Income" section
    5. "Edit" the 1099-R in the "Retirement" topic
    6. Verify the entries
    7. On the follow on page titled "Where is this distribution from?"
    8. Select "Active or reserve military retirement"
    9. Verify the amount, withholding and state ID number from your 1099-R
    10. Select "Non-Qualified" plan
    11. Continue to complete the section

    The total of all subtractions will show in the MD Tax Summary in online products viewed with the steps below. (In desktop products you can see the MD Form 502 in the forms mode check the retirement subtraction on line 13 and social security subtraction on line 11).

     

    To view the MD Tax Summary in online products:

     

    In the left hand menu:

    1. "Tax Tools"
    2. "Tools"
    3. "View Tax Summary"
    4. "Preview My 1040"
    5. "MD Tax Summary"
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