Yes, this income is sort of for an academic pursuit. It is a grant for scientific training in a federal agency. As such, I am not employed by the NIH, but have been granted a training award in the form of this taxable 1099-G grant. This position has similar properties and conditions to a University program, such as pauses on student loan repayment for the duration of the training program.
Currently, it seems like there is a split in the information I'm receiving. Many NIH postbac peers I have spoken to have reported that their accountants advised them to only file state taxes in their state of residence (in causes where Maryland was not their state of residence). Obviously this is somewhat second hand, and isn't an official statement from a tax advisor, but I as of yet have not seen examples of NIH research fellows living outside of Maryland, but paying Maryland state taxes. However, it also seems like the 1099-G is not to be counted as wages, salary, tips, etc. on Box one of Maryland Form 505 for nonresidents: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/2022/505.pdf
For reporting the income on TurboTax, I was entering it at the 1099-G screen, and it as treated as unearned ("other") income. Would it be more accurate to enter it in the way you describe, under Educational Expenses and Scholarships?
Thank you for your feedback, and let me know if you have more thoughts on the matter!
