Maryland Tax Credits you Need to know about
Courtesy of Leather Mae Tax service
**Tax Credits**
* 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.
* 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.
* Community investment tax credit: A tax credit of 50% of the approved contributions to approved Neighborhood and Community Assistance Programs.
* Accessibility and universal visitability features tax credit: A credit equal to 50% of the qualified expenses (up to $5,000 or MD tax liability) incurred during a taxable year to install accessibility and universal visitability features to or within a home.
* Endowments of Maryland historically black colleges and universities tax credit: A credit of 25% of the amount of donations made to a qualified permanent fund held at an eligible institution of higher education.
*Maryland Electric Vehicle Tax Credit: Maryland offers a state tax credit for the purchase of electric vehicles. The maximum tax credit is $7,500 for vehicles under 14,000 lbs . and $40,000 for vehicles above 14,000 lbs . This credit is available for qualified new electric vehicles and is based on the incremental cost of the vehicle compared to an equivalent internal combustion engine vehicle.
*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.
*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 sky-rocketing 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
**Deductions**
* 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.
* Foster care expenses: Up to $1,500 of unreimbursed expenses that a foster parent incurs on behalf of a foster child.
* 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. https://maryland529.com/
* 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.
https://www.marylandable.org/
* Income from U.S. government obligations: Income derived from U.S. government obligations, such as interest on U.S. Savings Bonds.
* 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.
* 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.
* 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.
**Exclusions**
* Income from U.S. government obligations: Income derived from U.S. government obligations, such as interest on U.S. Savings Bonds.
.jpg)
Comments