There are two different types of contributions to Maryland 529 plan:
1) There are contributions that account holders can make.
2) If certain conditions are met, the state of Maryland also makes contributions to 529 plans. The contribution amount from state of Maryland could be $250 or $500.
Please see here for more details: https://maryland529.com/Save4College/State-Contribution-Program/Contact-Us
Is the amount that the state of Maryland contributes to account holders' MD 529 plan (either the $250 or $500) considered income for federal tax purposes? If yes, where do we list it as income in the federal section?
Secondly, is that state contribution considered income for state tax purposes? I think the answer to this 2nd question is no, but just want to confirm.
Since this is a contribution from state of Maryland, a 1099-Q form is not provided, because a 1099-Q is for distributions.
Thank You
@ErnieS0
