Maryland – Reporting Tax Exempt Military Income on Form MD502
If you are a nonresident military taxpayer with ONLY military income, and you are filing a joint resident return with a civilian spouse, you can enter your tax exempt military income as follows:
- From within your TaxACT return (Online of Desktop) click on the State Q&A and then click Maryland directly below the blue tabs
- Click on Basic Information to expand that category then click Residency
- Select Full-year resident
- Click Maryland again
- Click Miscellaneous Topics to expand the category and then click Military Information
- On the screen titled Maryland – Non-Maryland Military Income enter your tax exempt military income and click Continue
- Select ONLY military income filing a joint resident return with a civilian spouse with any income and click Continue
- Enter the amount in either Taxpayer’s nonresident military income or Spouse’s nonresident military income and click Continue
This will transfer the amount to Line 7 on Maryland Form 502.