On August 20, 2018, the Maryland Higher Education Commission (MHEC) Secretary, Dr. James D. Fields, announced that applications for the 2018 Student Loan Debt Relief Tax Credit Program (hereinafter referred to as the “Relief Program”) are now being accepted.
The Relief Program provides a potential tax credit of up to $5,000.00 for Maryland taxpayers on their 2018 Maryland State Income Tax return if they:
(1) have incurred at least $20,000.00 of undergraduate and/or graduate student loan debt;
(2) have at least $5,000.00 in outstanding student loan debt remaining; and
(3) submit a completed application to MHEC, with appropriate documentation, by September 15, 2018.
The MHEC will notify each applicant whether or not they will receive a credit for their 2018 Maryland State Income Taxes by December 15, 2018. If a credit is received, the applicant must, within two (2) years of the taxable year in which the credit is received, pay an amount equal to the tax credit received towards their outstanding student loan balance. Documentation of this payment must be submitted to MHEC. If the credit received is in excess of the Maryland State income taxes owed for 2018, a refund for the difference will be issued to the taxpayer.
If you have additional questions about the Relief Program, wish to apply, or are in need of any further assistance, please contact Paul Snyder via email at PSnyder@TandLLaw.com or by calling (443) 927-2114.