HARRY HUGHES, Governor

2107

(3)  The lesser of:

(i) 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, or

(ii) 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
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)  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;

(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;

(9)  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