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HDL2
Returning Member

1099c and state tax

I understand that a 1099c for the amount over $600 is considered income. Is it true that the1099c amount is only taxable on the federal return? The state return shows the same AGI as the federal return.  If the 1099c amount is not taxable by the state, where on the state return is the 1099c amount excluded?

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3 Replies
AamilD
Expert Alumni

1099c and state tax

It depends on the state. Would you be able to please provide which state this is for.

HDL2
Returning Member

1099c and state tax

The state is Maryland

JillS56
Expert Alumni

1099c and state tax

A 1099-C would be included in the AGI of your federal return.   Most states start their returns with the AGI from the Federal return.    I found nothing to indicate that the 1099-C would not be taxed by Maryland.  Looking over the State of Maryland's income tax form I do not find a category under the subtraction section that would cover subtracting out the 1099-C.    Based on this, the 1099-C is taxable on your Maryland state return.

 

 

 

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