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Bill > HB125


MD HB125

MD HB125
Income Tax - Subtraction Modification - Retirement Income


summary

Introduced
01/13/2023
In Committee
01/13/2023
Crossed Over
Passed
Dead
04/10/2023

Introduced Session

2023 Regular Session

Bill Summary

AN ACT concerning Income Tax - Subtraction Modification - Retirement Income FOR the purpose of including income from certain retirement plans within a certain subtraction modification allowed under the Maryland income tax for certain individuals who are at least a certain age or who are disabled or whose spouse is disabled; altering the maximum amount of the subtraction modification for certain taxable years; repealing a limitation on the maximum amount of the subtraction modification; providing that income included in certain subtraction modifications may not be taken into account for purposes of the subtraction modification for retirement income; and generally relating to a subtraction modification under the Maryland income tax for retirement income. BY repealing and reenacting, with amendments, Article - Tax - General Section 10-209 Annotated Code of Maryland (2022 Replacement Volume)

AI Summary

This bill expands the subtraction modification allowed under the Maryland income tax for retirement income. It includes income from a broader range of qualified retirement plans, such as individual retirement accounts (IRAs) and Roth IRAs, in addition to traditional pensions. The bill also gradually increases the percentage of qualified retirement income that can be subtracted from federal adjusted gross income, from 30% in 2023 to 100% by 2025. Additionally, the bill removes the previous cap on the maximum amount of the subtraction and clarifies that income already subtracted under other provisions cannot be subtracted again under this section.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

House Ways and Means Hearing (13:00:00 2/2/2023 ) (on 02/02/2023)

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