$9 million in additional tax credits available for Maryland student loan debt

Maryland makes $9 million in additional tax credits available for student loan debt

About $9 million in tax credits will be available for more than 9,000 Maryland residents with student loan debt, Gov. Larry Hogan announced Tuesday. “, Hogan said in a statement. “Programs like this provide greater opportunities for our students and expand options to help pay off student debt, especially during this time when people are pressed for higher costs.” According to the governor’s office, Maryland taxpayers who have incurred at least $20,000 in undergraduate and/or graduate student loan debt and have at least $5,000 in student loan debt are eligible to apply for the Student Loan Debt Relief Tax Credit Those who attended state institutions received $1,067 in tax credits, while eligible applicants who attended out-of-state received $875 in tax credits.”We have now administered a total of $40,838,314 in tax credits to residents of Maryland since the program began,” the Secretary of State said. ense Maryland’s senior officer, James Fielder, in a statement. “MHEC remains committed to administering innovative programs like this that promote and ensure student success with less debt.” The tax credit is claimed on the recipient’s Maryland tax return when they file their state taxes. If the credit is greater than the taxes owed, they will receive a tax refund for the difference. For example, if $800 of taxes are owed without the credit and a student loan debt relief tax credit of $1,000 is applied, the taxpayer will receive a refund of $200. Under Maryland law, the recipient must submit proof of payment to MHEC showing that the tax credit was used for the purpose of repaying eligible student loan debt.

About $9 million in tax credits will be available for more than 9,000 Maryland residents with student loan debt, Gov. Larry Hogan announced Tuesday.

“Since its launch in 2017, more than 40,600 residents have benefited from the Maryland Student Loan Debt Relief Tax Credit “, Hogan said in a statement. “Programs like this provide greater opportunities for our students and expand options to help pay off student debt, especially during this time when people are pressed for higher costs.”

According to the Governor’s Office, Maryland taxpayers who have incurred at least $20,000 in undergraduate and/or graduate student debt and who have at least $5,000 in student loan debt are eligible to apply for the Student loan tax credit.

In 2021, 9,155 Maryland residents received the Student loan tax credit. Those who attended in-state institutions received $1,067 in tax credits, while eligible applicants who attended out-of-state institutions received $875 in tax credits.

Last year, the Maryland Higher Education Commission awarded the Student loan tax credit to 7,962 Maryland residents.

“We have now administered a total of $40,838,314 in tax credits to residents of Maryland since the program began,” Maryland Secretary of Higher Education James Fielder said in a statement. “MHEC remains committed to administering innovative programs like this that promote and ensure student success with less debt.”

The tax credit is claimed on the recipient’s Maryland tax return when they file their state taxes. If the credit is greater than the taxes owed, they will receive a tax refund for the difference. For example, if $800 of taxes are owing without the credit, and $1,000 Student loan tax credit is applied, the taxpayer will receive a refund of $200.

Under Maryland law, the recipient must submit proof of payment to MHEC showing that the tax credit was used for the purpose of repaying eligible student loan debt.

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