Maryland Earned Income Credits

If your earned income (income from a job) falls below certain levels, you may qualify for a reduction in taxes and possibly a refund. Federal, Maryland and Montgomery County tax laws provide for earned income credits.

What is the Maryland Earned Income Credit?

Maryland offers its taxpayers a credit on their taxes depending upon certain factors, such as how much money you made during the past year and if you have children. The program is called the Earned Income Credit (EIC). The Maryland EIC is based on your federal EIC. Maryland will allow you a credit of up to 50% of your federal EIC. 

There are two types, the refundable EIC and the non-refundable EIC. 

Non-refundable  means that it is a credit towards the taxes you owe.  Unlike the federal EIC, you cannot get back more than the total you paid in Maryland taxes. This is the only type you would be eligible for if you do not have any children. The non-refundable EIC allows you a credit of up to 1/2 (50%) of your federal EIC. 

If you have a child or children, you may be eligible for the Refundable EIC. 20% of your federal EIC equals or is more than the amount you owe in Maryland taxes, you may be eligible for a refundable earned income credit from the state. 

Which type am I eligible for? 

Non-refundable EIC - To be eligible, you must:
1) be eligible for the Federal Earned Income Credit, 
2) been a Maryland Resident for the past tax year or part of the year,
3) meet the Federal Earned Income Tax Credit requirements:

• Your adjusted gross income must be less than $12,590 (or less than $14,590 for married workers) if you have no children, and are at least 25 years old and under age 65.
• Your adjusted gross income must be less than $33,241 (or less than $35,241 for married workers) if you maintained a home for a child for at least 6 months of the past tax year.
• Your adjusted gross income must be less than $37,783 (or less than $39,783 for married workers) if you have two or more children.

Refundable EIC, you must meet the same requirements as above PLUS you must have a child or children whom you could claim as exemptions on your federal tax returns.

How do I file for and receive a refund under the Maryland Earned Income Credit program?

The Maryland tax form booklet contains a worksheet on which you can calculate the amount of any credit to which you are entitled. You can also file on-line.

Where do I find the forms? 

Source: Maryland State Law Library (MSLL)                                                   Last date legal review: 1/8/08 (PLL/M.A.J.)

About this website. The Maryland State Law Library, a court-related agency of the Maryland Judiciary, sponsors this site. The website was developed (1999-2007) as part of an access to justice initiative by the Maryland Legal Assistance Network (MLAN) in collaboration with a number of legal services providers serving low and moderate income Marylanders.  In the absence of file-specific attribution or copyright, the Maryland State Law Library may hold the copyright to parts of this website. You are free to copy the information for your own use or for other non-commercial purposes with the following language “Source: Maryland's People’s Law Library – www.peoples-law.org. © Maryland State Law Library, 2007.”

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