Maryland Pension Income Deduction is Inconsistent

[daphnehanse11]

"The maximum value of the subtraction is indexed to the maximum annual benefit payable under the Social Security Act ($39,500 for 2024)" https://mgaleg.maryland.gov/2025RS/fnotes/bil_0009/sb0099.pdf

" the maximum annual benefit under the Social Security Act computed under subsection (c) of this section, less any payment received as old age, survivors, or disability benefits under the Social Security Act, the Railroad Retirement Act, or both."

https://law.justia.com/codes/maryland/tax-general/title-10/subtitle-2/part-ii/section-10-209/

It is unclear where they get $39,500 (the value in the tax forms) as that doesn't match https://www.ssa.gov/oact/cola/examplemax.html

[PavelMakarchuk]

Is this a bill to reform the pension deduction? If not signed into law, lets label it as a reform

[daphnehanse11]

@PavelMakarchuk No, it is not a new bill. The existing law states that the max subtraction is indexed to the maximum annual social security benefit, but the amount listed in the tax forms is not the same as what SSA says their max benefit is.

[MaxGhenis]

See https://github.com/PolicyEngine/policyengine-us/pull/5700#discussion_r1999686377