Maryland 529 distributions from grandparent account to beneficiary

[notataxfan1]

Hello, our college student's grandparents have a 529 for her.  There was a distribution not used for qualified expenses made to her as beneficiary.  The student does not contribute to a 529 plan.  I was able to get thru the 1099-Q reporting at the federal level on her return, but how does this get reported on the Maryland return?  Does this amount need to be entered somewhere on her Maryland return, if so, specifically how?  I only see help info about not taking a contribution, but she doesn't make one.  Also, does it affect her grandparents' returns?  Thanks.  

[KrisD15]

It sounds like the student is claiming the distribution (1099-Q) and paying the tax on that distribution if applicable. 

If this is the case, you would enter the 1099-Q on the federal portion of student's TurboTax and there would be no other reporting necessary. 

The income is carried forward to her state return. 

The Grandparents (as owners of the account) needn't report anything relating to the distribution if the 1099-Q was issued to and is claimed by the student. 

[notataxfan1]

Thank you that was super helpful!

[Hal_Al]

Q. Does this amount need to be entered somewhere on her Maryland return?

A. Yes

Q. Does this amount need to be entered somewhere on her Maryland return, if so, specifically how?

A.  TurboTax does it automatically.  Like most states, MD starts with the federal Adjusted Gross Income (AGI), which already includes the non qualified 529 plan distribution.  There is no further adjustment (no addition or subtraction) on The MD return.  So the 529 amount will not appear anywhere on the MD return.