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Does Maryland tax Social Security benefits? No. Taxpayers affected by the federal tax on Social Security and/or Railroad Retirement benefits can continue to exempt those benefits from state tax.
If you are 65 or older or totally disabled (or your spouse is totally disabled), you may qualify for Marylands maximum pension exclusion of $34,300* under the conditions described in Instruction 13 of the Maryland resident tax booklet.
Is Retirement Income Taxed in Maryland? The Old Line State is especially attractive for many retirees since retirement income is not taxed in Maryland. Social Security and Railroad Retirement benefits are not taxed.
Table 1-1. 2023 Filing Requirements Chart for Most Taxpayers IF your filing status is. . .AND at the end of 2023 you were . . .*THEN file a return if your gross income** was at least. . .single65 or older$15,700head of householdunder 65$20,80065 or older$22,650married filing jointly***under 65 (both spouses)$27,7006 more rows
Substantial income includes wages, earnings from self-employment, interest, dividends, and other taxable income that must be reported on your tax return. Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits. More than $34,000, up to 85% of your benefits may be taxable.

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Retirement Tax Elimination Act of 2023 This bill creates a subtraction modification against the State income tax for 100% of the income received by an individual who (1) is receiving old age or survivor Social Security benefits or (2) is at least age 65 and is not employed full time.
When both you and your spouse have taxable income, you may subtract up to $1,200 or the income of the spouse with the lower income, whichever is less. The income can be from wages, pensions, or business income.
Choose the Right Income Tax Form If you are a Maryland resident, you can file long Form 502 and 502B if your federal adjusted gross income is less than $100,000. If you lived in Maryland only part of the year, you must file Form 502. If you are a nonresident, you must file Form 505 and Form 505NR.

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