Maryland Earned Income Tax Credit

Details on Maryland's EITC

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The Earned Income Tax Credit, or EITC, is a federal income tax credit for low-income working families and individuals. Twenty-three states and the District of Columbia have their own version of the EITC. Most state EITCs are based on the amount of the taxpayer's federal EITC and have the same or similar eligibilty rules as the federal credit. Many state EITCs are also refundable.

Maryland Earned Income Tax Credit

Maryland has two earned income credits.

The first credit is equal to 50% of your federal EITC and is not refundable. If after that credit is applied, your state tax liability is equal to zero or less, you qualify for an additional refundable credit equal to 25% of your federal EITC. In addition, Maryland also offers the poverty level credit.

  • State: Maryland
  • Percentage of federal credit: 25% and 50%
  • Is it refundable? The 50% credit is applied to your tax liability and is not refundable. If this credit amount is equal to or greater than your state tax liability, you can also claim an additional 25% refundable credit.
  • Income eligibility criteria same as federal? Yes
  • How to claim: File your federal tax return and claim the federal EITC if you qualify. Then file a Maryland resident tax return (Form 502) and use the worksheets in the instructions to calculate your Maryland earned income credits.

Also see: Maryland Form 502/503 Instructions for more details.