A new form 502LU for MD Unemployment subtraction...Oh Boy

The RELIEF Act allows Maryland taxpayers to subtract certain amounts from their federal adjusted gross income (FAGI). In order to be eligible for the subtraction, these amounts must be included in a taxpayer’s FAGI for the same year. Please note certain payroll protection programs under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act have already been excluded from FAGI under federal law. As these amounts are not included in a taxpayer’s FAGI, they are not eligible for subtraction on the Maryland return.
In order to claim these subtractions, individuals must complete Maryland Form 502LU and file it along with their return.
Two distinct subtractions from income are available under the RELIEF Act for tax years 2020 and 2021:
• Unemployment Benefits: To the extent included in federal adjusted gross income, taxpayers may
subtract the amount of unemployment benefits received during the taxable year on their Maryland
return. This subtraction is only available to taxpayers with a filing status of single, married filing
separate, or dependent with a FAGI of less than $75,000, and filers with married filing joint, head of
household, or surviving spouse status with a FAGI of less than $100,000.