If implemented, HB 1453 would amend existing laws related to itemized deductions in the Maryland income tax code. It establishes new criteria under which individuals can qualify for a subtraction modification on their state income taxes, specifically targeting residents with a federal adjusted gross income of $100,000 or less. Notably, the bill also delineates that income qualifying for this modification cannot overlap with income designated for other tax benefits, indicating a careful approach to prevent double-dipping in tax reductions.
Summary
House Bill 1453, known as the Retirement Tax Reduction Act of 2022, aims to provide financial relief to specific groups of residents in Maryland by modifying the state's income tax structure. This bill allows individuals receiving old age or survivor Social Security benefits, or those aged 65 and older who are not employed full-time, to subtract a certain amount of income from their taxable income under the Maryland income tax system. The primary goal of the legislation is to reduce the tax burden on retirees and those relying on Social Security benefits, thus promoting economic stability among these populations.
Contention
While the bill garners support for its intention to alleviate tax burdens for senior citizens and vulnerable populations, it also has points of contention worth noting. Critics may argue that the eligibility criteria could exclude certain low-income individuals who require financial assistance, despite not aligning strictly with the provisions set out in the bill. Additionally, there may be concerns regarding how such tax breaks will be balanced within the broader state budget and the impact on revenue collection for public programs that serve all citizens.
Creating an individual income tax deduction for certain income earned by an individual from the practice of psychiatry or from providing psychiatric or mental health services. (FE)
Creating an individual income tax deduction for certain income earned by an individual from the practice of psychiatry or from providing psychiatric or mental health services. (FE)
Creating an individual income tax deduction for certain income earned by an individual from the practice of psychiatry or from providing psychiatric or mental health services. (FE)
Creating an individual income tax deduction for certain income earned by an individual from the practice of psychiatry or from providing psychiatric or mental health services. (FE)