If you live in Maryland and owe student loan debt, Maryland’s Higher Education Commission may provide relief. However, 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 2017. If approved, you may receive up to a $5,000 tax credit. To receive the tax credit, you must:
- File Maryland State Income Taxes for 2018
- Have incurred at least $20,000 or more in undergraduate student loan debt
- Have at least $5,000 in outstanding undergraduate debt
- Submit an application by September 15th along with required graduate and/or undergraduate student loan information, including Maryland Income Tax Information and college transcripts.
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 the end of the year. The tax credit must be used toward your student loan debt within two years.
Please contact us with any questions.
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