Maryland offers the following credits for those that qualify:
State Earned Income Credit
If you claimed the earned income credit on your federal return, claim half the amount of the Federal credit on your Maryland return.
State Poverty Level Credit
Those who are claimed as a dependent are not eligible for this credit. If your earned income and Federal AGI plus additions are below the poverty level, you may be eligible to claim this credit.
Credit for Taxes Paid to Another State
If you are a Maryland resident who earned income in another state and both Maryland and the other state imposed tax on the income, you may be eligible for a credit on your Maryland return. The program will automatically calculate this credit if the Maryland Resident return and the other state nonresident return is entered into the program.
Maryland has written reciprocal agreements with Pennsylvania, Virginia, West Virginia and the District of Columbia. You cannot take the credit for taxes paid to another state if the other state is listed here. For complete filing instructions for the Maryland return and the reciprocal state, review an article, click here.
Credit for Child and Dependent Care Expenses
The program will automatically calculate the child and dependent care credit for you if you claimed the credit on your Federal Return within the program.
Quality Teacher Incentive Credit
Qualified teachers may claim a nonrefundable credit on the state return for required graduate-level courses taken to maintain certification.
Credit for Aquaculture Oyster Floats
Taxpayers that purchase a new Aquaculture Oyster Float during the tax year may qualify to claim up to a $500 credit on their tax return. The credit is nonrefundable and cannot be carried forward.
Long-term Care Insurance Credit
Taxpayers that purchase long-term care insurance for themselves or certain members of their family may qualify for a tax credit.
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. You must apply for the credit on the Maryland website and receive a credit certificate.
The following credits require documentation to be mailed with the return or emailed to the state. If the required documentation is not present with the return, the credit may be disallowed.
- Credit for Preservation and Conservation Easements
If you donated an easement to the Maryland Environmental Trust or The Maryland Agricultural Land Preservation Foundation, you may be eligible for a credit on your return. The credit is equal to the lesser of the fair market value of the property reduced by the easement payments received or the tax liability on the return.
Venison Donation – Feed the Hungry Organizations Tax Credit
Taxpayers may be able to claim a credit if you hunt antlerless deer in compliance with state law and requirements. You can donate the processed meat to a qualified exempt organization for consumption. The total amount of the credit cannot exceed $200.
- Health Enterprise Zone Practitioner Tax Credit
If you are a qualified “Health Enterprise Zone (HEZ) Practitioner,” you may be able to claim a credit against your state tax liability for income that you earned for practicing health care in an HEZ.
- Community Investment Tax Credit
Program supports Nonprofit organizations by attracting contributions in exchange for tax credits.
- Endow Maryland Tax Credit
Offers tax credits for donations of $500 or more to permanent, endowed funds at qualified community foundations.
- Preceptors in Areas with Health Care Workforce Shortages Tax Credit
Individuals that work in certain areas of the state with a Health Care Workforce shortage may qualify for a credit.
- Independent Living Tax Credit You may be able to claim a credit towards your state income tax equal to 50% of the incurred expenses to make your home more accessible.
- Student Loan Debt Relief Tax Credit
Individuals that have at least $20,000 in undergraduate or graduate student loan (or both) debt may qualify for the credit.
- IRC 1341 Repayment Credit
Repayment for amount reported as income in prior year in excess of $3,000.
- Flow-through Nonresident PTE Tax
Individuals that are a beneficiary of a trust, partner or member of a pass-through entity that paid Nonresident PTE tax may qualify for a credit.
- PTE Tax paid on resident members distributive or pro rata shares of income
0if you are a Maryland resident and you are the beneficiary of a trust or a Qualified Subchapter S Trust which elected to pay the tax imposed with respect to resident members’ distributive or pro rata shares, you may be entitled to a credit for your share of that tax. See Form 502CR Instructions
For more information about Maryland's Business Credits, please click here.