Per the Maryland Relief Act, anyone who received unemployment is exempt from MD State Taxes. If I paid into this weekly, how do I enter the 1099G?

[amanda-mattis]

-From the MD Taxes Website: The RELIEF Act provides a State Income Tax Exemption for Unemployment Insurance (UI) Benefits for qualifying filers. UI payments are currently subject to federal and state income taxation.
Beginning with Tax Year 2020 and including Tax Year 2021, the Act exempts from the state income tax the UI benefits received by an individual earning less than $75,000, and couples filing jointly or individual heads of households earning less than $100,000.

-You may claim the subtraction on your 2020 and 2021 Maryland State Tax Return.

[LenaH]

Per the State of Maryland, the tax forms related to the RELIEF Act signed into law on February 15, 2021, will not be ready until sometime in March. Updates on the availability of forms will be posted on their website on the page RELIEF Act Information. Once these forms are updated by the State of Maryland, TurboTax will be able to update the return.

Unfortunately, we cannot give instructions on how to exempt your unemployment from taxable income as the forms have not been released yet. Once the state updates the tax return, TurboTax will be able to update the program and provide clear instructions on subtracting your unemployment compensation from your Maryland taxable income. 

However, you can enter your 1099-G now and wait to file your return once the forms are updated. 

To enter your 1099-G, please follow the instructions below:

1. Open your return.
2. Search for unemployment compensation and select the Jump to link.
3. On the Did you receive unemployment or paid family leave benefits in 2020? screen, answer Yes.
4. Follow the on-screen instructions.

[Haykal]

Is there any update on Maryland tax forms? I am trying to avoid doing an amendment, so do you recommend waiting for the update or should I file now? Thanks

[LenaH]

The State of Maryland has not yet released the updated tax returns. They estimated it to be complete by sometime in March. Once the state releases the tax forms, TurboTax will update the software accordingly. It will be best to wait for the update, rather than filing an amendment. 

For more information, please see RELIEF ACT FAQ's. You can also go to RELIEF ACT Information for state updates. 

Furthermore, the State of Maryland released a Tax Alert on 3/11/21, which states that all individual, corporate, pass-through entity, and fiduciary income tax returns that otherwise would have been due on varying dates between January 1, 2021 and July 15, 2021, inclusive, are now due on or before July 15, 2021. 

Maryland Tax Alert 3/11/21

@Haykal

[FS]

When will TurboTax Home & Business be updated to reflect this change? 

[Cynthiad66]

TurboTax Online has been updated to reflect the Federal Adjustments.  You should be able to file your return now.

For Marylanders who received or currently receive UI benefits, the RELIEF Act provides an income tax subtraction for Tax Years 2020 and 2021. In addition, the RELIEF Act provides $1,000 Unemployment Grants to 32,000 recipients. Questions about the Unemployment Grant should be directed to the Maryland Department of Labor, the agency that determines who will receive the grant.

[bobbokma1]

Cynthia: your message said that TurboTax online has been updated. When will TurboTax Deluxe 2020 be updated to allow reducing unemployment from taxable income?

[CatinaT1]

This has already been updated.