Yes, it does seem like the best option would be to not enter personal contributions to an MD529 plan for any year in which you receive the state contribution ($250 or $500).
The Turbo Tax prompt asks "Did you receive a contribution from Maryland to a college 529 plan that was included in Federal Income in 2019?" This makes me think that there is a place on the income section of the federal return where state contributions ($250 or $500) should be listed and would be counted as federally taxable income. However, I looked several times but saw no place where the Maryland contribution ($250 or $500) could be listed as income. Can someone clarify whether we are supposed to claim the $250 or $500 as federal income and, if so, where you list that on the federal return.
Thanks!
