If you live in Maryland and owe student loan debt, a new program can provide relief. But you must act quickly as the deadline to apply is September 15th.
The Student Loan Debt Relief Tax Credit went into effect on July 1st, but has not been widely publicized. If approved, you may receive up to a $5,000 tax credit. To qualify, you must:
- Have incurred $20,000 or more in undergraduate student loan debt
- Have at least $5,000 in outstanding undergraduate debt
- Submit an application by September 15th
Only $5 million in tax credits will be issued each year. Priority will be given to taxpayers who incurred their loans to pay in-state tuition to an undergraduate institution located in Maryland, have higher debt burden to income ratios, and who have not previously received a tax credit.
With the application, you must provide an official school transcript, documentation from your lender, and a copy of your Maryland income tax return. You will receive notice of any tax credit approved by December 15, 2017. The tax credit needs to be used towards the student loan debt within two years.
Please contact us with any questions.
Tags: college, Debt, student loan, Tax