I have a client who is receiving her deceased husband's Retirement benefits from the city of Baltimore F & P. MD just added a new subraction code v for up to $15k on income from an employee retirement system that is attributable to service as a public safety employee. I am trying to research to see if she would be elibible for this deduction, as her husband was a public safety employee for Baltimore City Fire Department.
I don't think so. See Subtractions.
What's New for the Tax Year (marylandtaxes.gov)
It doesn't mention spouse.
I would say yes.
v. Up to $15,000 in income from an employee retirement system that is attributable to service as a public safety employee for a taxpayer who is age 55 or
older on the last day of the taxable year. To qualify, you
must be a retired correctional officer, law enforcement officer, or fire, rescue, or emergency services personnel of
the United States, Maryland, or a political subdivision of
Maryland. Only subtract income that you included on your
federal return as taxable income received as a pension, annuity or endowment from an “employee retirement system”
qualified under Section 401(a), 403 or 457(b) of the Internal
Revenue Code
I read that, too.
It says "you" and not spouse or surviving spouse
" To qualify, you must be a retired correctional officer, law enforcement officer, or fire, rescue, or emergency services personnel of the United States, Maryland, or a political subdivision of
Maryland."
I agree with Susan.
If you take a look at Md. Tax-General Code Ann. §10-209, which governs the new subtraction, there is no reference to the death of a taxpayer or the surviving spouse. The only reference to the entitlement in relation to a spouse is in subsection (b) where the spouse is totally disabled:
In contrast, if you refer to §10-754, which is for the Senior tax credit that was added by the same House Bill 1468, there are clear references to surviving spouses in two subsections:
If there was an intention for a surviving spouse to benefit from the subtraction, there would have been no reason for §10-209 to not include such references.
Thanks Jensen.
I didn't feel like taking the time to look up the code.
(Although that would have been a better use of my time than the military person selling a rental at a loss with depreciation recapture)
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.