Are the one-time economic impact payments of $300 to individuals and $500 to joint filers under the Maryland Relief Act of 2021 considered income for federal income tax purposes? Below link says they could be.
https://www.marylandtaxes.gov/RELIEFAct/docs/Maryland-Economic-Impact-Payment-FAQs-FINAL.pdf
Relevant quote from the link (emphasis mine):
"Your Maryland economic impact payment is not taxable on your Maryland state tax return. However, unless exempted, it will be included as income at the federal level. The amount, if any, included in your federal adjusted gross income would then be eligible for a subtraction modification at the state level."
State of Maryland did not provide a 1099 or any other form for this payment.
So I have three questions:
1) Is this $300 or $500 payment considered income for federal tax purposes?
2) If it is considered income for federal tax purposes, how do we report this income in Turbo Tax, and what form will we use?
3) After adding it in federal portion, how do we subtract it from Maryland state return?
Thank You
@DawnC
