Maryland Tax Credits you Need to know about
Courtesy of Leather Mae Tax service
**Maryland Tax Credits**
* Long-term care insurance credit:
Up to $450 or $500 for the payment of qualified long-term care insurance premiums.This is a one time credit. Maryland tax form 502CR PART E
* Community investment tax credit:
Individuals who contribute to approved Community Investment Programs may be eligible for a credit against the Maryland State income tax. Contributions must be made to a nonprofit organization approved by the Department of Housing and Community Development (DHCD). The taxpayer must apply to and receive approval by the DHCD for each contribution for which a credit is claimed. A tax credit of 50% of the approved contributions to approved Neighborhood and Community Assistance Programs. Maryland Form 502CR PART H
For more information contact:
Department of Housing and Community Development
Division of Neighborhood Revitalization
2 N. Charles St., Suite 450
Baltimore, MD 21202
410-209-5800
citc.nr@mdhousing.org
* Independent Living Tax credit:
An individual may claim a credit against their Maryland State income tax equal to 50% of the qualified expenses incurred during a taxable year to install accessibility and universal visitability features to or within a home. “Accessibility and universal visitability features” means components of renovation to an existing home that improves access to or within the home for individuals with disabilities. Maryland Form 502CR PART K
For more information, contact:
Maryland Department of Housing and Community Development
7800 Harkins Road Lanham, MD 20706
301-429-7400
dhcd.maryland.gov/Pages/Contact-Us.aspx
customerservice.dhcd@maryland.gov
* ENDOW MARYLAND TAX CREDIT
A taxpayer who makes a donation to a qualified permanent endowment fund at an eligible community foundation may be eligible for a credit against the Maryland State income tax. The credit is limited to 25% of the approved donation (in cash or publicly traded securities) not to exceed $50,000. NOTE: A copy of the required approval from the DHCD (Department of Housing and Community Development) must be included with Form 502CR. Maryland Form 502CR PART I
Amount reported on 502CR part I line 2 requires an addition to income.
Report on form 502 Line 5 code e
For more information contact:
Division of Neighborhood Revitalization
2 N. Charles St.,
Suite 450
Baltimore, MD 21202
410-209-5800
* Endowments of Maryland historically black colleges and universities tax credit:
Taxpayers making donation to a qualified permanent endowment fund held at an eligible institution of higher education (Bowie State University, Coppin State University, Morgan State University, or University of Maryland Eastern Shore), may be eligible for a credit of 25% of the amount of donation.. Maryland Form 502CR PART L .
The tax credit application can be found at www.marylandtaxes.gov and must be emailed to HBCUtaxinfo@marylandtaxes. gov and will be approved on a first-come, first served basis by the Comptroller of Maryland. The application must be submitted in the calendar year the donation was made. Donors are required to submit documentation from the institution showing proof of donation within 30 days before a final tax credit certificate is issued.
*Tax Credit for Plug in Electric Vehicles:
You may be eligible for a one-time excise tax credit, up to $3,000, when you purchase a qualifying zero-emission plug-in electric or fuel cell electric vehicle. Effective July 1, 2023 through June 30, 2027, an individual may be entitled to receive an excise tax credit on a qualifying zero-emission plug-in electric or fuel cell electric vehicle regardless of whether you own or lease the vehicle. Business entities may also qualify for the tax credit on up to ten vehicles.
Complete and certify an VR-334 Application (Excise Tax Credit Request for Plug-In Electric or Fuel Cell Vehicle)
Submit completed form & Monroney sticker image/photo to MVAElectricRefunds@mdot.maryland.gov or mail to:
Excise Tax Refund Unit,
6601 Ritchie Highway NE Room 202
Glen Burnie, MD 21062.
More Info https://mva.maryland.gov/vehicles/Pages/27300-71T.aspx
*EV Charging Station Rebate Program:
Maryland offers a rebate program for the installation of Level 2 electric vehicle charging stations . Grants are available for up to $4,500 per Level 2 EV charger , and eligible applicants can receive up to $600,000 in grants.
https://energy.maryland.gov/transportation/pages/incentives_evserebate.aspx
Note: Maryland's Excise Tax Credit for Plug-In Electric Vehicles program is administered by Maryland's Motor Vehicle Administration (MVA)
*The Maryland Homestead Property Tax Credit is a program:
designed to help homeowners in Maryland deal with large assessment increases on their principal residence [1][2]. The program limits the increase in taxable assessments each year to a fixed percentage
https://dat.maryland.gov/realproperty/Pages/Maryland-Homestead-Tax-Credit.aspx
**The Renters' Tax Credit Program:
provides property tax credits for renters who meet certain requirements.It's a program for low-income renters to help account for the skyrocketing cost of rent in Maryland. The program provides financial assistance up to $1,000 per year for tenants to use towards their rent. https://www.marylandtaxcredit.com/renters
https://onestop.md.gov/forms/renters-tax-credit-application-form-rtc-2023-63dacc5b81fbf9019f6185c3
**Subtractions from Income**
* Interest and dividend income of a dependent child:
The amount of interest and dividend income (including capital gain distributions) of a dependent child which the parent has elected to include in the parent’s federal gross income. Maryland Tax form 502SU line s
*Donate farm equipment:
Value of farm products you donated to a gleaning cooperative. Maryland has several gleaning cooperatives and organizations that work to recover surplus food from farms and distribute it to those in need. Maryland Tax form 502SU line o
https://nationalgleaningproject.org/gleaning-map/states/maryland/?fwp_state=md
* Adoption credit:
Up to $6,000 for the adoption of a child with special needs through a public or nonprofit adoption agency and up to $5,000 for the adoption of a child without special needs.
Maryland Tax form 502SU line k
Deduction for public safety employees for a taxpayer who is age 55:
Up to $15,000 in income from an employee retirement system that is attributable to service as a public safety employee for a taxpayer who is age 55 or older on the last day of the taxable year. To qualify, you must be a retired correctional officer, law enforcement officer, or fire, rescue, or emergency services personnel of the United States, Maryland, or a political subdivision of Maryland
Maryland Tax form 502SU line k
* Foster care expenses:
Up to $1,500 of unreimbursed expenses that a foster parent incurs on behalf of a foster child.
Maryland Tax form 502SU line w
* Maryland Prepaid College Trust contributions (Maryland 529 ACCOUNT):
Up to $2,500 per contract purchased for advanced tuition payments made to the Maryland Prepaid College Trust.
Maryland Tax form 502SU line xa
* Maryland ABLE Program contributions:
Up to $2,500 per ABLE account contributor per beneficiary of the total of all amounts contributed under the Maryland ABLE Program.
form 502SU line xd
* Income from U.S. government obligations:
Income from U.S. Government obligations. Enter interest on U.S. Savings Bonds and other U.S. obligations. Capital gains from the sale or exchange of U.S. obligations should be included on this line. Dividends from mutual funds that invest in U.S. Government obligations also are exempt from state taxation. However, only that portion of the dividends attributable to interest or capital gain from U.S. Government obligations can be subtracted.
Maryland Tax form 502SU line ab
Maryland Bond income is exempt from tax:
Profit (without regard to losses) from the sale or exchange of bonds issued by the State or local governments of Maryland.
Maryland Tax form 502SU line e
Classroom Expenses:
Up to $250 of certain unreimbursed expenses paid or incurred by a full time K-12 teacher for the purchase of certain classroom supplies
Maryland Tax form 502SU line tt
Military retirement income & Death Benefits for spouse:
Up to $5,000 of military retirement income, including death benefits, received by a qualifying individual during the tax year if the taxpayer has not yet attained the age of 55; or up to $15,000 of military retirement income, including death benefits, received by a qualifying individual if the taxpayer is age 55 or over.
* Income derived within an arts and entertainment district:
Income derived from the publication, production, or sale of an artistic work by a qualifying residing artist within an arts and entertainment district. Arts and Entertainment District - means an area designated by the Secretary of the Maryland Department of Commerce as an arts and entertainment district
line dd of Form 502SU Attach Form 502AE
District Directory
https://www.msac.org/directory#/districts
* First-Time Homebuyer Savings Account contributions:
Up to $5,000 per year (10-year limit) of the amount contributed to a designated First-Time Homebuyer Savings Account. The First-Time Homebuyer Savings Account Subtraction may be claimed on Form 502SU by a Maryland resident who has not owned or purchased, either individually or jointly, a home in the State in the last 7 years and who has contributed money to a first-time homebuyer savings account.
Maryland Tax form 502SU line ww
Maryland General Assembly( State Tax law)
https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1178?ys=2021RS
* Donations of certain disposable diapers, hygiene products, and monetary gifts to qualified charitable entities:
Up to $1,000 for the donations of certain disposable diapers, hygiene products, and monetary gifts to qualified charitable entities. To qualify for this subtraction, you must enter the value of the donation and the name of each qualified charitable entity to which a donation was made.
Diaper Bank
https://www.marylanddiaperbank.org/take-action
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