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Bill > HB499


MD HB499

MD HB499
Income Tax - Subtraction Modification - Retirement Income


summary

Introduced
01/21/2022
In Committee
01/21/2022
Crossed Over
Passed
Dead
04/11/2022

Introduced Session

2022 Regular Session

Bill Summary

Including income from certain retirement plans within a certain subtraction modification allowed under the Maryland income tax for certain individuals who are at least 65 years or who are disabled or whose spouse is disabled; altering the maximum amount of the subtraction modification beginning in taxable year 2022; providing that income included in certain subtraction modifications may not be taken into account for purposes of the subtraction modification for retirement income; etc.

AI Summary

This bill seeks to expand the Maryland income tax subtraction modification for retirement income. It would increase the percentage of qualified retirement plan income that can be subtracted from federal adjusted gross income, starting at 30% for 2022-2023, then 60% for 2023-2024, and finally 100% for 2024 and beyond. The bill also clarifies that income already subtracted under other provisions cannot be subtracted again under this provision. Additionally, the bill maintains the existing $15,000 cap on the subtraction for retired correctional officers, law enforcement, and emergency services personnel, unless the individual is at least 65 years old or disabled. The bill would take effect on July 1, 2022 and apply to all taxable years starting after December 31, 2021.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

House Ways and Means Hearing (13:00 2/16/2022 ) (on 02/16/2022)

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