NIH Federal Grants taxable at State level

Forum|Forum|3 years ago
February 27, 2023
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I am in my first year of a Federal Taxable grant working for NIH in Maryland.

I received just 1099-G. There was no State tax form provided. I moved to Maryland temporarily while working on this 1 year grant. I understand it is federally taxed, but is the income considered taxable in State of Maryland? There is no State code designated on the 1099-G. I can find very little information regarding state taxation requirements of federal grants. Any insight is appreciated.

Vanessa A

Yes, your federally taxable grant is also taxable to the state of Maryland. The designation of a state code on a tax form does not determine its taxability to the state.

Maryland starts with your federal income and makes subtractions for state refunds, child care expenses, and pensions. There is not a deduction for grants.

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