For the 2023 tax year, individuals interested in this opportunity are encouraged to complete a tax credit application within the specified timeframe.
Maryland taxpayers seeking assistance with their student loans can take advantage of a tax credit program designed specifically for this purpose
Starting from July 1 and continuing until September 15, the application process for the 2023 tax year will be open. To be eligible for the tax credit, applicants must have incurred a minimum of $20,000 in student loan debt during their undergraduate or graduate studies. Additionally, they should have at least $5,000 in outstanding student loan debt at the time of applying, as stated in an official document released by the state.
Recipients of the Student Loan Debt Relief Tax Credit are required to use the awarded amount to pay off their college loan debt
Within three years from the end of the taxable year to which the tax credit applies, they must provide evidence of payment to the Maryland Higher Education Commission. Failure to provide proof of debt repayment may result in the recipients being obliged to return the money to the state through a process known as “recapture,” as explained in the state’s official fact sheet.
It is important to note that the current laws concerning college loan relief do not have any influence on the Student Loan Debt Relief Tax Credit program, according to the information provided in the fact sheet. Therefore, individuals should consider this opportunity separate from other college loan relief measures currently in effect.