Earned Income Tax Credit (EITC)
- Refundable: Currently 26% of federal EITC, rising to 27% January 1, 2017 and 28% January 1, 2018.
- Non-Refundable: 50% of federal EITC1
Eligibility Requirements: See Maryland’s EITC information page
Latest Legislative Action:
In the 2016 legislative session, a bill that would have increased the state’s EITC for childless workers and lower the EITC’s age requirement from 25 to 21 stalled due to disagreements over tax breaks for the wealthy.2
- The non-refundable credit is equal to the lesser of 50% of the federal credit or the state income tax liability in the taxable year. If the nonrefundable credit reduces a taxpayer’s liability to zero, the taxpayer is eligible to claim a refundable credit equal to 26% of the federal credit in tax year 2016, minus any pre-credit state tax liability.3
- Montgomery County, a large suburban county neighboring the District of Columbia, is one of three counties in the United States to offer a local EITC in addition to the state credit. Eligible families that filed for the EITC receive a county credit equal to 100% of the state’s refundable credit.4
Child Tax Credit (CTC)
State CTC: The state of Maryland does not currently offer a state level Child Tax Credit.
Child and Dependent Care Tax Credit (CDCTC)
State CDCTC Rates (Non-Refundable):
- For filers with adjusted gross incomes up to $41,001: 32.5% of federal CDCTC5
- For filers with incomes between $41,001 and $50,001: 29.25%-3.25% of federal CDCTC, phased out with each additional $1,000 in adjusted gross income.5
See Maryland CDCTC information page for details.
Eligibility Requirements: See Maryland CDCTC information page.
Notes: Income limits for tax credit vary depending on filing status. The above numbers are for a married couple filing jointly. Individual filers use a similar schedule with income levels reduced by 50 percent.
Maryland Tax Credits In The News
- Earned Income Tax Credit Information, Comptroller of Maryland
- House Bill 452, Maryland General Assembly
- House Bill 452 Fiscal and Policy Note, Maryland General Assembly
- Montgomery County Refundable Earned Income Credit, Montgomery County 311
- Child and Dependent Care Tax Credit Information, Comptroller of Maryland