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Thursday, February 28, 2019

Income Tax - Subtraction Modification - Military Retirement Income

Important Legislation Provides Much Needed Relief To Maryland RetireesNote: Senate Budget and Taxation Committee to Hold Hearing on SB 875 on Wednesday, February 27, 2019, 1:00 PM
“We won’t stop fighting until the legislature has agreed to eliminate one hundred percent of all retirement taxes on our retired veterans. As long as I am governor, I will continue to be a tireless advocate, standing up and fighting for our veterans each and every day.” - Governor Larry Hogan, August 23, 2018
Income Tax - Subtraction Modification - Military Retirement Income
Governor Hogan’s Proposed Legislation Eliminates State Taxes On Military Retirement Income Received As A Result Of Military Service. “The subtraction under subsection (a) of this section includes:... for a taxable year beginning after December 31, 2019, but before January 1, 2021, 50% of the military retirement income received by an individual during that taxable year; and for a taxable year beginning after December 31, 2020, all of the military retirement income received by an individual during that year.” (“Senate Bill 875,” Maryland General Assembly, 2/8/19)    
  • The Governor’s Proposed Legislation Will Provide Maryland Retirees With $91 Million In Tax Relief Over The Next Five Years. (Maryland Department Of Budget And Management)
Governor Hogan Has Consistently Fought To Eliminate Taxes On The Retirement Income Of Maryland Retirees  
In 2014, Governor Hogan Campaigned On Working To Eliminate Taxes On The Retirement Income Of Marylanders. Maryland Republican gubernatorial nominee Larry Hogan told residents of a large seniors community Tuesday that he would like to eliminate taxation of all retirement income once the state gets its fiscal house in order… ‘Once we get it under control, our plan — we can’t do it immediately — will be to completely eliminate state income taxes for pensions and retirement income,’ Hogan told the Charlestown residents.” (John Wagner, “Md. GOP Nominee Hogan Suggests Eliminating Taxes On All Retirement Income,” The Washington Post, 8/19/14)
  • In 2014, Governor Hogan Stated That He Would Fight To Eliminate Income Tax On The Pensions Of Military Retirees; Stated Veterans Deserve Better. “Republican Larry Hogan says he would push to eliminate Maryland’s income tax on military pensions, if he is elected governor. Hogan spoke Wednesday to the Maryland American Legion’s annual convention in Ocean City. He says veterans deserve much better than they have been getting from the state or federal government. Hogan says veterans have earned the tax break. He also says the tax is bad economic policy.” (“Hogan: Eliminate Income Tax On Military Pensions,” The Associated Press, 7/16/14)
This Is The Fourth Year That Governor Hogan Has Introduced Legislation To Eliminate State Taxes On The Retirement Income Of Military Retirees: 201520172018.   
In 2017, Governor Hogan Enacted Legislation Precluding The First $10,000 Of Retirement Income From State Taxes From State Taxes; Last Session Governor Hogan Enacted Legislation Expanding The Exemption To The First $15,000.

1 comment:

Anonymous said...

Northwest Woodsman: Wow about time! I joined the army in 1963 and left the state of Maryland, never to reside there again. Somewhere along the line, years later, I received a letter from the state claiming I owed them taxes even though I had not resided there for over six years. I had changed my residency to Florida (no state income tax) and maintained that as my state of residence until much later when I bought property in Texas and became a Texas resident. i never returned to Maryland except to pass through for a day or two and am glad that when I retired, I made the decision to settle in another state with no state income tax. Now that democrats have turned the Maryland into a Marxist paradise, I’m even more satisfied with my decision. Glad that my parents who were Salisbury residents didn’t live to see their beloved state turn into a failed experiment in socialist governing.