1276

LAWS OF MARYLAND

Ch. 373

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
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) for all taxable
years beginning after December 31, 1978, any income reported
on the individual's federal income tax return due to a
withdrawal or withdrawals from a retirement plan established
under the Self-Employed Individuals Tax Retirement Act of
1962, Public Law 87-792, as amended, popularly known as a
Keogh Plan, to the extent that the withdrawal or withdrawals
consist of funds on which State income taxes were paid under
the applicable State law at the time the funds were
contributed to the plan, or of interest or dividends on
which State income taxes were paid under the applicable
State law at the time the interest or dividends accumulated
in the plan; (6) 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;
(7) to the extent included, distributions to beneficiaries
of accumulated income on which income tax has been paid by a
fiduciary to this State; (8) 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; (9) to
the extent included, any profit realized from the sale or
exchange of bonds issued by this State and its political
subdivisions; [and] (10) 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 of this subparagraph may allow the
subtraction to the nearest $100. The allowed subtraction
shall be reduced by the amount of disability benefits