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Interest reported in box 1 of a Form 1099-INT is not excludible from taxable income in Maryland.
Mortgage interest is reported on a 1098 so I am thinking you invested in a mortgage company that provides interest. If the company invested in local/state bonds, then that portion could be exempt.
Reference:
Here are the MD Instructions. You can hold control and F to open a search box
Interest reported in box 1 of a Form 1099-INT is not excludible from taxable income in Maryland.
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