A new check box has been added to form 502 to indicate that a taxpayer is claiming the Maryland Earned Income Credit but does not qualify for the Federal EIC.
Local Tax Income Tax Rate Changes:
- Anne Arundel County’s tax rate increased from 2.5% in 2019 to 2.81% in 2020.
- Washington County’s tax rate increased from 2.8% in 2019 to 3.2% in 2020.
- Baltimore County’s tax rate increased from 2.83 in 2019 to 3.20 in 2020.
- Dorchester County’s tax rate increased from 2.62 to 3.20.
- Kent County’s tax rate increased from 2.85 in 2019 to 3.20 in 2020.
- St. Mary’s tax rate increased from 3.00 in 2019 to 3.17 in 2020.
- Worcester County’s tax rate increased from 1.75% 2019 to 2.25% in 2020.
- The special nonresident income tax rate has increased from 1.75% in 2019 to 2.25% in 2020.
New Tax Credits:
Endowments of Maryland Historically Black Colleges and Universities Tax Credit - An individual or business may claim a credit against their Maryland State income tax equal to 25% of the amount of approved donations made to a qualified permanent fund held at an eligible institution of higher education (Bowie State University, Coppin State University, Morgan State University or University of Maryland Eastern Shore).
Credit for Child and Dependent Care Expenses – The maximum income limits on eligibility have changed, making this credit refundable.