Article - Tax - General
§10–209.
(a) (1) In
this section the following words have the meanings indicated.
(2) “Emergency
services personnel” means emergency medical technicians or paramedics.
(3) (i) “Employee
retirement system” means a plan:
1. established
and maintained by an employer for the benefit of its employees; and
2. qualified under §
401(a), § 403, or § 457(b) of the Internal Revenue Code.
(ii) “Employee
retirement system” does not include:
1. an individual
retirement account or annuity under § 408 of the Internal Revenue
Code;
2. a Roth individual
retirement account under § 408A of the Internal Revenue Code;
3. a rollover individual
retirement account;
4. a simplified
employee pension under Internal Revenue Code § 408(k); or
5. an ineligible
deferred compensation plan under § 457(f) of the Internal Revenue
Code.
(b) Subject to
subsections (d) and (e) of this section, to determine Maryland adjusted
gross income, if, on the last day of the taxable year, a resident
is at least 65 years old or is totally disabled or the resident’s
spouse is totally disabled, or the resident is at least 55 years old
and is a retired law enforcement officer or fire, rescue, or emergency
services personnel of the United States, the State, or a political
subdivision of the State, an amount is subtracted from federal adjusted
gross income equal to the lesser of:
(1) the cumulative
or total annuity, pension, or endowment income from an employee retirement
system included in federal adjusted gross income; or
(2) the maximum
annual benefit under the Social Security Act computed under subsection
(c) of this section, less any payment received as old age, survivors,
or disability benefits under the Social Security Act, the Railroad
Retirement Act, or both.
(c) For purposes
of subsection (b)(2) of this section, the Comptroller:
(1) shall determine
the maximum annual benefit under the Social Security Act allowed for
an individual who retired at age 65 for the prior calendar year; and
(2) may allow the
subtraction to the nearest $100.
(d) Military retirement
income that is included in the subtraction under § 10–207(q)
of this subtitle may not be taken into account for purposes of the
subtraction under this section.
(e) In the case
of a retired law enforcement officer or fire, rescue, or emergency
services personnel of the United States, the State, or a political
subdivision of the State, the amount included under subsection (b)(1)
of this section is limited to the first $15,000 of retirement income
that is attributable to the resident’s employment as a law enforcement
officer or fire, rescue, or emergency services personnel of the United
States, the State, or a political subdivision of the State unless:
(1) the resident
is at least 65 years old or is totally disabled; or
(2) the resident’s
spouse is totally disabled.