17207: MD - RELIEF Act - Unemployment Compensation Subtraction (Drake20)

Maryland enacted an additional subtraction under the Recovery for the Economy, Livelihoods, Industries, Entrepreneurs, and Families (RELIEF) Act of 2021. The “Qualifying Guidelines” for the RELIEF unemployment compensation subtraction are as follows: 

• You received unemployment benefits from the Maryland Department of Labor;
• You received unemployment benefits from the unemployment insurance program of any of the following jurisdictions, with which Maryland has a reciprocal taxation agreement: Pennsylvania, Virginia, West Virginia, and Washington D.C.;
• All or some portion of the unemployment benefits were included in your FAGI;
• Your federal AGI does not exceed:
  • $75,000 for single, married filing separately, and dependent filers;
  • $100,000 for married filing jointly, head of household, or qualifying widower.

If the taxpayer does not meet these guidelines, the Unemployment Compensation Exclusion allowed on the return is limited to the extent that it was included in Federal Adjusted Gross Income (FAGI). No additional subtraction will be calculated. 

If the taxpayer meets the guidelines, the subtraction will be figured on MD502LU - Legislative Updates Addition/Subtraction Modifications. The subtraction then flows to Form 502, line 15.