I am in MD, this year I received two 1099-INT for the interest earned from savings account. Bank address in the 1099-INT is in DE. Is the interest income taxable in MD?

[zhan1512]

I'm confused because I use online banking all the time. Not sure whether my bank should be considered as located online.

[MayaD]

The income is taxable in the state that you lived in when you received the income. 

[kcrespy]

I am a senior in MD and turbotax appears to be including the 1099-INT amount  in the 'SUBTRACTIONS FROM MARYLAND INCOME' section -- lowering my MD AGI. The difference between my calculations and what I am seeing on Turbo Tax equal the exact 1099-INT number.

But I cannot find any firm documentation to support that subtraction, nor understand on which line it is being noted on my MD502. I want to understand this.

Would it be something on the MD502SU form, like "Net subtractions from income reported by a fiduciary."? Can anyone help?

[SteamTrain]

It may depend on which box $$ are being subtracted.....and you have not indicated whcih box $$ are doing this

1)  All of box 3 $$ would be subtracted.

2)  Some of box 8 $$ might be subtracted if you held some MD Muni bonds...or all would be subtracted if you indicated that all of box 8 $$ came only from MD Muni bonds you owned.   If you owned a mixture of MD and non-MD Muni bonds, you needed to answer a follow-up question as to what $$ amounts in box 8 came from MD Muni bonds (or a US territory, like Puerto Rico), and what $$ amount came from "Multiple States".

3)  Box 1 $$ would only be subtracted if you indicated that those $$ came from certain DC area taxable bonds.

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All else fails,  delete the 1099-INT and re-enter it manually.   If the error continues, and is associated with the box 8 $$ amounts...you may need further instructions..

[kcrespy]

thank you for the quick reply. The only box on the 1099-INT with a number is Box 1.

Interestingly, I added the 1099-INT manually but I will delete it and try again.

[ThomasM125]

If the interest was from Maryland state bonds, it would not be taxable in Maryland. After your entered the Form 1099-INT you may have indicated in the program that the interest income was not taxable in Maryland. When you enter it again, make sure you don't say anything special about it, assuming it is taxable in Maryland. @kcrespy 

[kcrespy]

That is exactly what happened! Thank you!

[Sri745]

This screenshot is exactly where I am, however on the Maryland tax return, it's excluding 100% of the interest income instead of asking me how much to exclude (which is listed on the 1099). Anyone know how to adjust for a specific amount?

[SteamTrain]

@Sri745 

This is an Old Post...you really should start an entirely new Question.

BUT......anyhow...

The screenshot provided in that post is only for dealing with MD income showing in  box 1 of a 1099-INT.

For dealing with actual MD bond $$ included in box 8 of a 1099-INT, you deal with those differently on a subsequent page.

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1) For the first bullet point (First picture below), you need to select "Multiple States" from the bottom of the list of states   (Unless all the bonds you own are MD-issued bonds..only .then you could select MD)

2)  Then you'd select the second bullet point and again select "Multiple States" and break out the $$ from MD bonds (and any US Territories ) from the rest.  (Second picture below)

(Examples pictures are for a supposed NC resident)

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[Sri745]

Thank you! If this does not work, I will create a new post in case others run into this issue as well.