HARRY HUGHES, Governor 1543
(c) There shall be subtracted from federal adjusted
gross income: (1) interest or dividends on obligations of
the United States and its territories and possessions or of
any authority, commission or instrumentality of the United
States and any other income to the extent includable in
gross income for federal income tax purposes, but exempt
from State income taxes under the laws of the United States;
(2) payments received by policemen and firemen from pension
systems for injuries or disabilities arising out of and in
the course of their employment as policemen or firemen; (3)
for all taxable years ending after December 31, 1972,
amounts received by an individual who has attained the age
of 65 years before the close of the taxable year as an
annuity, pension, or endowment under a private, municipal,
State or federal employee retirement system, and included in
such individual's federal adjusted gross income, this
subtraction shall not exceed an amount equal to the maximum
annual benefits permitted for persons who retired at the age
of 65 or older under the Social Security Act for the prior
calendar year. The Comptroller shall determine the amount
of the maximum benefit annually and for the purposes of this
subparagraph may allow the subtraction to the nearest $100.
The allowed subtraction shall be reduced by the amount of
old age, survivors, or disability benefits received under
the Social Security Act, the Railroad Retirement Act, or
both, as the case may be; (4) in the case of persons retired
prior to January 1, 1967, payments received which represent
[uncovered] UNRECOVERED contributions to a retirement system
over and above any amount of such contributions remaining to
be recovered tax free on the federal return, limited to an
amount which together with the amount of any tax—free
exclusion in the federal return does not exceed the
exclusion which was permitted under the laws and regulations
of this State prior to the year 1967; (5) to the extent
included, the amount of any refunds of income taxes paid to
the State of Maryland, any other state, the District of
Columbia, and any political subdivision of the State of
Maryland and of any other state; (6) to the extent included,
distributions to beneficiaries of accumulated income on
which income tax has been paid by a fiduciary to this State;
(7) expenses for household and dependent care services
determined and calculated as employment—related expenses
under Section 44A of the Internal Revenue Code, as amended
from time to time, and subject to the dollar limit imposed
by that section; (8) TO THE~ EXTENT INCLUDED, ANY PROFIT
REALIZED FROM THE SALE OR EXCHANGE OF BONDS ISSUED BY THIS
STATE AND ITS POLITICAL SUBDIVISIONS; and [(8)] (9) for all
taxable years ending after December 31, 1972, amounts
received by an individual who is totally disabled, as an
annuity, pension or endowment under a private, municipal,
State or federal retirement system, and included in such
individual's federal adjusted gross income, this subtraction
shall not exceed an amount equal to the maximum annual
benefit received in Maryland by persons who retired at the
age of 65 or older under the Social Security Act for the
prior calendar year. The Comptroller shall determine the
amount of the maximum benefit annually and for the purposes
|
![clear space](../../../images/clear.gif) |