70

LAWS OF MARYLAND

Ch. 24

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[;].
THE COMPTROLLER SHALL DETERMINE THE AMOUNT OF THE MAXIMUM
BENEFIT ANNUALLY. FOR THE PURPOSES OF THIS PARAGRAPH, THE
COMPTROLLER MAY ALLOW THE SUBTRACTION TO THE NEAREST $100;
(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, THE LESSER OF (I) 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]
OR (II) 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 received under the Social Security Act,
the Railroad Retirement Act, or both, as the case may be.
THE COMPTROLLER SHALL DETERMINE THE AMOUNT OF THE MAXIMUM
BENEFIT ANNUALLY. FOR THE PURPOSES OF THIS PARAGRAPH, THE