584                               Laws of Maryland                        [Ch. 406

(n) Payments up to Fifteen Hundred Dollars ($1,500.00) received
during each current calendar year as members of the Armed Forces
of the United States and of the United States Maritime Service, U. S.
Merchant Marine Cadet Corps and the United States Merchant
Marine by residents of this State on active duty with aforesaid
branches of service.

(o) Beginning with the calendar year 1944 and thereafter,
amounts received as musteringout pay by members of the armed
forces of the United States to the extent paid and received under
and pursuant to Public Law No. 225, and any amendments thereto
or thereof, 78th Congress (2nd Session) known as the Mustering-
Out Payment Act of 1944, approved February 3, 1944, and amounts
paid or received by veterans of the armed forces of the United States
as benefits or compensation under and pursuant to Public Law No.
346 and any amendments thereto or thereof, 78th Congress (2nd
Session) known as the Servicemen's Readjustment Act of 1944,
approved June 22, 1944.

(p) In other than the taxable year in which actually distributed
or made available to him, any person's share of a contribution or
payment made by an employer to a stock 'bonus, pension, annuity,
profit-sharing or deferred compensation plan established by an
employer for the benefit of his employees or their beneficiaries which
for the taxable year with respect to which the contribution or pay-
ment is made meets the requirements of Section 165 of the United
States Internal Revenue Code, as amended from time to time; and,
in addition, in the taxable year in which actually received! or made
available, so much of the aggregate benefits to the beneficiary of
annuities under a plan meeting such requirements as exceed "annu-
ity income" (as defined in Section 275 (1) of this sub-title); pro-
vided, however, that the portion, if any, of such contribution applied
to a purchase of life insurance protection prior to the retirement of
the employee, shall be deemed to be a part of his compensation and
included in his gross income in the taxable year in which so applied,
and the proceeds of any such insurance policy on the life of an
employee paid by reason of his death shall be exclude from gross
income in the taxable year When paid as provided in Section 276 (b)
of this subtitle.

(q) Payments received by policemen and firemen from pension
systems for injuries sustained in the line of duty.

277. Deductions.

(a) All ordinary and necessary expenses except to the extent
limited by Section 278 hereof paid or incurred during the taxable
year in carrying on any trade or business, including a reasonable
allowance for salaries or other compensations for personal services
actually rendered in producing taxable income [.] and including any
contribution made by cm employer to an established and approved
accident and health welfare fund or plan maintained for employees
or to such a plan maintained by an organization or association of
employees to which an employer is required to contribute pursuant
to a contract or agreement with such organization or association.

283. Imposition of Tax.

(e) (7) Accident and Health Welfare Fund or Plan as defined in
Section 275 (s) of this sub-title.