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Hello and thanks you for using Just Answer. If you must report the amount from Form 1099-C as income on your federal tax return you must report the amount from Form 1099-C to the state of Maryland. The computation for Maryland income begins with federal adjusted gross income (AGI).
If the amount reported on Form 1099-C is from the cancellation of qualified principal residence up to $2,000,000 cab be excluded from federal and state income.