3. Is there a tax break for two-income families?
Yes. Maryland provides a deduction for two-income married couples who file a joint income tax return. When both you and your spouse have taxable income, you may subtract up to $1,200 or the income of the spouse with the lower income, whichever is less. The income can be from wages, pensions, or business income.
The deduction is available only on the Maryland return and should be entered on line 14 of Form 502. A worksheet is included in Instruction 13 of the resident tax booklet to help you calculate the subtraction.