Per the State of Maryland (3.10.23): Governor Wes Moore today announced that the Maryland Higher Education Commission has awarded nearly $9 million in 2022 tax credits to more than 9,000 Maryland residents who have incurred student loan debt.
“This program offers Maryland residents a critical advantage when looking for options to pay off student loan debt,” said Governor Moore. “These tax credits support student success through less debt.”
Nearly $50 million in tax credits have been awarded since the program originated in 2017. This year, more than 9,300 Maryland residents were awarded the tax credit in the amount of $966 each, totaling $8,996,358 in tax credits statewide. Maryland taxpayers who have incurred at least $20,000 in undergraduate and/or graduate student loan debt and have at least $5,000 in outstanding student loan debt are eligible to apply for the Student Loan Debt Relief Tax Credit.
The tax credit will be claimed on the recipient’s Maryland income tax return when they file their Maryland taxes this year. If the credit is more than the taxes owed, they will receive a tax refund for the difference. Under Maryland law, the recipient must submit proof of payment to the Maryland Higher Education Commission documenting that the tax credit was used for the purpose of paying down the qualifying student loan debt.
To learn more about the program, go to https://mhec.maryland.gov/preparing/Pages/StudentLoanDebtReliefTaxCredit.aspx