1099-G for the NIH in Bethesda, MD

[billyg07422]

I saw that an individual staying in MD and working for the NIH for the year received a 1099-G and wondered if it was subject to state tax.  The response posted was YES.  As Bethesda, MD (where the NIH is located)  is in Montgomery County, is the 1099-G also subject to county tax?  Does it matter whether the individual is renting an apartment in Bethesda for the time period, but claims home (as on their driver's license) as New Jersey?

[Cynthiad66]

Yes the income is taxable.

The NIH NRSA grant stipend is taxable income, but is not subject to payroll tax. As such, it is neither reported on Form W2 nor as a 1099-MISC. This income is treated in the same fashion as scholarship income in excess of tuition. It flows to Line 7 of your 1040 as wages, with the notation "SCH".

Yes, your stipend is subject to federal, state and local taxes.

No,  it does not matter if you are living temporarily in MD but NJ is your home of record.  It is still taxable, Federal and state.

You would enter the 1099-G under the Income and Expenses section of the federal return.

1. Scroll down to Other Common Income and select Other 1099-G Income.
2. Click on the start button next to Other 1099-G Income.
3. Answer the questions and continue through the section to enter your 1099-G.