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Student Loan Debt Relief Tax Credit

The Student Loan Debt Relief Tax Credit may be claimed on Form 502CR by certain qualified taxpayers in the amount certified by the Maryland Higher Education Commission. Note: A copy of the required certification from the Maryland Higher Education Commission must be included with Form 502CR. “Qualified taxpayer” means an individual who has incurred at least $20,000 in undergraduate student loan debt and has at least $5,000 in outstanding undergraduate student loan debt when submitting an application for certification to the Maryland Higher Education Commission. The amount of any tax credit approved by the Maryland Higher Education Commission may not exceed $5,000. The refundable tax credit must be claimed against the State income tax for the taxable year in which the Maryland Higher Education Commission certifies the tax credit. Individuals applying for certification should submit an application to the Maryland Higher Education Commission by September 15th of each year. The Maryland Higher Education Commission shall prioritize tax credit recipients and amounts based on qualified taxpayers who:

(1) Have higher debt burden to income ratios;
(2) Graduated from an institution of higher education located in Maryland;
(3) Did not receive a tax credit in a prior year; or
(4) Were eligible for in-state tuition.

The credit shall be recaptured if the individual does not use the credit approved under this section for the repayment of the individual’s undergraduate student loan debt within 2 years from the close of the taxable year for which the credit is claimed. The individual who claimed the credit shall pay the total amount of the credit claimed as taxes payable to the State for the taxable year in which the event requiring recapture of the credit occurs.

For more information contact:

Maryland Higher Education Commission
6 North Liberty Street
Baltimore, MD 21201
Phone: (410) 767-3300 or (800) 974-0203
mhec.maryland.gov

 



 
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Tax Credits and Deductions
  College Savings Plans Deductions
  Poverty Level Credit
  Preservation and Conservation Easement Credit
  Income Taxes Paid to Other States Credit
  Heritage Structure Rehabilitation Tax Credit
  Solar Energy Grant Subtraction
  Tax Subtraction for Two-Income Families
  Long-Term Care Insurance Credit
  Quality Teacher Incentive Credit
  Earned Income Tax Credit
  Aquaculture Oyster Float Credit
  Child or Dependent Care Expenses
  Student Loan Debt Relief Tax Credit
  Child and Dependent Care Tax Credit
 
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