What is Maryland two-income subtraction?

Maryland’s Two-Income Subtraction: If you are a dual-income couple filing a joint tax return, you may be able to subtract the earnings of the spouse with the lower income, or up to $1,200 (whichever is less) from your combined taxable income.

What is the Maryland married couple deduction?

Yes. Maryland provides a deduction for two-income married couples who file a joint income tax return. When both you and your spouse have taxable income, you may subtract up to $1,200 or the income of the spouse with the lower income, whichever is less. The income can be from wages, pensions, or business income.

What is Maryland standard deduction?

Standard Deduction – The tax year 2020 standard deduction is a maximum value of $2,300 for single taxpayers and to $4,650 for head of household, a surviving spouse, and taxpayers filing jointly.

What is Maryland special nonresident tax?

1.75%
If you are a nonresident who works in Maryland and/or derives other income from a Maryland source, you are subject to Maryland’s income tax rates as well as the special nonresident tax rate of 1.75%.

How does the two income tax subtraction work in Maryland?

( Maryland Income Tax FAQ) The tax credit does not count for income as defined by “wages, pensions, or business income”, therefore, for purposes of the Maryland two-income subtraction, you don’t have two incomes, so, no subtraction.

How much can you subtract from your spouse’s income in Maryland?

When both you and your spouse have taxable income, you may subtract up to $1,200 or the income of the spouse with the lower income, whichever is less. The income can be from wages, pensions, or business income.” ( Maryland Income Tax FAQ)

How much can I deduct on my Maryland tax return?

The exclusion is applicable to both taxpayers. The maximum admissible amount of the exclusion is $30,600. If you file a joint return and both spouses have income subject to Maryland tax, you may deduct up to $1,200.

How much can I subtract from my military income?

Individuals under age 55 may subtract up to $5,000 of military retirement income. Individuals age 55 or older may subtract up to $15,000 of military retirement income.

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