Sept. 15 is the last day to apply for a state tax credit to help pay off those student loans.
If you live in Maryland and have student loans, you may be eligible for a special tax credit. The Maryland Student Loan Debt Relief Tax Credit provides qualified taxpayers up to $5,000 towards paying off existing student loans. In order to qualify for the credit, you must apply for the program before September 15, 2019. Last year the state granted over $9 million in tax credits to residents through the program.
In order to qualify for the tax credit, you must have incurred more than $20,000 in student loans and have at least $5,000 in current outstanding debt. Preference is given to residents who graduated from a college in Maryland, were eligible for in-state tuition, have not received a tax credit in the past, and have higher debt-to-income ratios. Maryland residents that do not fit these criteria are still encouraged to submit an application.
Applications can be submitted online or by mail, but electronic submission is strongly suggested. There is no application fee, but you will need a copy of your transcripts, documentation from your lender, and a copy of last year’s Maryland tax return. Applications must be submitted by Sept. 15, and approval notices will be sent out in December.
Once you have been approved, the credit will be issued and you will have two years to pay off the debt and provide proof to the state of Maryland. Credits that are not redeemed in time may be rescinded. Maryland also offers tax credits for parents saving for college and for teachers taking upper level courses to maintain certifications. Visit the Maryland Comptroller website for more information.
Have you applied for a Maryland tax credit? How much were you approved for? Tell us in the comments!