state taxes in Maryland and Michigan

Forum|Forum|1 year ago
February 4, 2025
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I am filling out my son's tax return with TurboTax. He lives in Maryland.

Last year, he received a Pandemic Uninsurance Assistance (PUA) payout from when he lived in Michigan. The claim had been filed in 2020, but it took until 2024 for it to be paid. He has received a 1099-G associated with the payout.

My expectation is that the PUA payout would be taxable in Michigan but not in Maryland, as the income was entirely attributable to Michigan. Is that incorrect? I can find no way on the Michigan non-resident return to include the 1099-G as Michigan income, nor any way on the Maryland return to exclude it. Is the 1099-G considered Maryland income because he lived in Michigan at the time he received it, even though the claim was from when he lived in Michigan, and was paid by the state of Michigan?

Thanks to anyone who can provide insight.

MAK70

No, the unemployment is not taxable in Michigan. Michigan only taxes unemployment if the taxpayer is a resident at the time he received it.

He would have to include the 1099-G income for Maryland because Maryland state resident report all income regardless of source. If he would have been required to pay tax to Michigan, he would be able to receive a credit for the taxes paid. Maryland did allow exclusion for pandemic payments received in 2020 and 2021 on the 2020 and 2021 tax returns, but it does not have the exclusion in p-lace for 2024 returns.

matto1Author

Thank you.

If I understand your response, then, it means the 1099G will be reportable only in Maryland, even though it came from Michigan. He was not a resident of Michigan when he received the money.