Talking Taxes: Tax credit programs available to Marylanders
BALTIMORE — Tax season has officially kicked off, and the Maryland Comptroller is encouraging Marylander's to take advantage of the various tax credit programs the state offers.
Here's a list of some of the tax credit programs you may be eligible for as a Maryland resident:
Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a federal and state tax credit for low-income individuals and families who have earned income from employment or self-employment. In Maryland, the EITC is available to taxpayers with a total household income of $60,000 or less.
The credit is based on the amount of earned income and the number of qualifying children in the household. The maximum credit amount for Maryland taxpayers is $2,917.
You can check your eligibility to receive the ETIC, and estimate your credit by using the ETIC Assistant tool.
Senior Tax Credit
Senior citizens may enjoy is a higher income allowance before they are required to file a Maryland income tax return. Seniors are only required to file a state return if their gross income exceeds a certain threshold.
You can find a full chart that contains the minimum filing levels by status and income here.
Quality Teacher Incentive Credit
If you are a qualified teacher, you may be able to claim a tax credit for tuition paid for graduate-level courses required to maintain certification.
The credit applies if you hold a standard or advanced professional certificate, teach in a public school or qualified facility, receive satisfactory performance, and successfully complete the courses with a grade of B or better.
Employees of certain Maryland county/city boards of education, state or local correctional facilities, and juvenile correctional facilities may also be eligible.
The credit can be claimed on Maryland forms 502, 505 or 515.
First-Time Homebuyer Savings Account
Maryland residents who have not owned or purchased a house in the last 7 years may claim a subtraction of up to $5,000 on Form 502SU for contributions plus earnings to a first-time homebuyer savings account.
Earnings can be up to $50,000 over 10 years. Funds must be used within 15 years and any remaining funds are subject to taxation. Eligible costs are the down payment and closing costs for the purchase of a home in the State.
Child and Dependent Care Tax Credit
If you were qualified to get a Child and Dependent Care Credit on your federal income tax return, Form 1040 or 1040A for the tax year, you might be entitled to a credit on your Maryland state income tax return.
Student Loan Debt Relief Tax Credit
The Student Loan Debt Relief Tax Credit can be claimed by eligible taxpayers using Form 502CR.
To be eligible, applicants must have had at least $20,000 in undergraduate student loan debt and have at least $5,000 in outstanding undergraduate student loan debt when applying to the Maryland Higher Education Commission.
The maximum tax credit is $5,000.
Other Tips:
There are not all the tax credits available for individuals, and there are also tax credit opportunities for Maryland businesses. For the full list of tax credit programs, you can visit the Maryland Comptrollers website.
You can also file your personal income taxes online at no cost by visiting the Taxes Online Services page.
