Ch. 2

LAWS OF MARYLAND

GROSS INCOME OF AN INDIVIDUAL TO DETERMINE MARYLAND ADJUSTED
GROSS INCOME.

(B)  DIVIDENDS AND INTEREST FROM ANOTHER STATE OR LOCAL
OBLIGATION.

THE ADDITION UNDER SUBSECTION (A) OF THIS SECTION INCLUDES
INTEREST OR DIVIDENDS, LESS RELATED EXPENSES, ATTRIBUTABLE TO AN
OBLIGATION OR SECURITY OF:

(1)  ANOTHER STATE; OR                     

(2)  A POLITICAL SUBDIVISION OR AUTHORITY OF ANOTHER
STATE.

(C)  FEDERAL TAX EXEMPT INCOME.

(1)  IF EXEMPTED BY FEDERAL LAW OR BY TREATY FROM
FEDERAL BUT NOT STATE TAX ON INCOME, THE ADDITION UNDER
SUBSECTION (A) OF THIS SECTION INCLUDES WAGES.

(2)  IF EXEMPTED BY FEDERAL LAW OR BY TREATY FROM
FEDERAL BUT NOT STATE TAX ON INCOME, THE ADDITION UNDER
SUBSECTION (A) OF THIS SECTION INCLUDES INTEREST OR DIVIDENDS
ATTRIBUTABLE TO AN OBLIGATION OF:

(I)  THE UNITED STATES OR A FOREIGN GOVERNMENT;
OR

(II)  AN AUTHORITY, COMMISSION, INSTRUMENTALITY,
POSSESSION, OR TERRITORY OF THE UNITED STATES OR OF A FOREIGN
GOVERNMENT.

(D)  LUMP SUM DISTRIBUTIONS.

(1)  IN THIS SUBSECTION, "INTERNAL REVENUE CODE" MEANS
THE INTERNAL REVENUE CODE OF 1954, AS AMENDED THROUGH 1985.

(2)  THE ADDITION UNDER SUBSECTION (A) OF THIS SECTION
INCLUDES FROM A LUMP SUM DISTRIBUTION CLAIMED AS A DEDUCTION
UNDER § 402(E)(3) OF THE INTERNAL REVENUE CODE AND REDUCED BY THE
MINIMUM DISTRIBUTION ALLOWANCE UNDER § 402(E)(1)(D) OF THE
INTERNAL REVENUE CODE:

(I)  THE ORDINARY INCOME PORTION AS DEFINED
UNDER § 402(E)(4)(E) OF THE INTERNAL REVENUE CODE; AND

(II)  40% OF THE CAPITAL GAINS PORTION, AS
DEFINED IN § 402(A)(2) OF THE INTERNAL REVENUE CODE, TO THE
EXTENT THAT THE PORTION IS TREATED AS ORDINARY INCOME.

(E)  OIL PERCENTAGE DEPLETION ALLOWANCE.

THE ADDITION UNDER SUBSECTION (A) OF THIS SECTION INCLUDES
THE OIL PERCENTAGE DEPLETION ALLOWANCE CLAIMED UNDER § 613 OR §
613A OF THE INTERNAL REVENUE CODE.

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