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College Savings Plans Deductions

If you contribute to the Maryland Prepaid College Trust, the Maryland College Investment Plan or the Maryland Broker-Dealer Investment Plan, you may claim a subtraction on the Maryland income tax return, using Form 502 for full or part-year residents or Form 505 for nonresident individuals by filing Form 502SU or Form 505SU.

You may be able to claim up to $2,500 per contract purchased for advanced tuition payments made to the Maryland Prepaid College Trust or up to $2,500 per taxpayer per beneficiary for the total of all amounts contributed to investment accounts for the same beneficiary under the Maryland College Investment Plan and the Maryland Broker-Dealer College Investment Plan.

If you have contributed more than $2,500 during the taxable year, the excess may be carried over to each subsequent succeeding tax year until the full amount of the initial contribution is allowed as a subtraction for the Maryland Prepaid College Trust or until used to the next 10 succeeding taxable years for the College Investment Plan.

An addition on the Maryland income tax return must be claimed for any refunds of advanced tuition payments made under the Maryland Prepaid College Trust, to the extent the payments were subtracted from federal adjusted gross income and were not used for qualified higher education expenses, and any refunds of contributions made under the Maryland College Investment Plan or the Maryland Broker-Dealer College Investment Plan, to the extent the contributions were subtracted from federal adjusted gross income and were not used for qualified higher education expenses.

For more information, see Administrative Release 32 - Maryland Prepaid College Trust and Maryland College Investment Plan Tax Benefits and College Savings Plans of Maryland.



 
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Tax Credits and Deductions
  College Savings Plans Deductions
  Poverty Level Credit
  Preservation and Conservation Easement Credit
  Income Taxes Paid to Other States Credit
  Heritage Structure Rehabilitation Tax Credit
  Solar Energy Grant Subtraction
  Tax Subtraction for Two-Income Families
  Determine Tax Credits and Deductions
  Long-Term Care Insurance Credit
  Quality Teacher Incentive Credit
  Earned Income Tax Credit
  Aquaculture Oyster Float Credit
  Child or Dependent Care Expenses
  Neighborhood Stabilization Credit
  Child and Dependent Care Tax Credit
  Hurricane Tax Relief
 
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