Income Tax Subtraction

Who May Claim the Law Enforcement Subtraction Modification?

In the 2016 session of the Maryland General Assembly, the Public Safety and Policing Workgroup bill (HB1016) was passed. The bill contained a section that allows “law enforcement officers” to claim an income tax subtraction modification for the first $5,000 of earned income if:

(1) The law enforcement officer resides and works in the same political subdivision; and
(2) The crime rate in the political subdivision exceeds the State’s crime rate.

A “law enforcement officer” is defined as an individual who is authorized in his or her official capacity to make arrests and is a member of a law enforcement agency, including officers serving under a probationary status or at the pleasure of the appointing authority of a county or municipal corporation. Federal law enforcement officers do not qualify for the subtraction modification.

A list of the political subdivisions that have crime rates exceeding the State’s crime rate is provided to the Comptroller’s Office each year by the Maryland Police Training and Standards Commission.

The current list of qualifying agencies for the 2024 tax year can be found at the below link to the MD Comptroller’s Office under item 28. Baltimore County does qualify.

https://marylandtaxes.gov/faq/individual-tax.php#q29

A qualifying law enforcement officer may claim the subtraction by reporting it on Form 502 and Form 502SU. The code is 00 (zero/zero).

As always please consult your tax adviser for professional advice. This is provided as information only.