Comptroller of Maryland. Serving the People. Peter Franchot, Comptroller
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Child or Dependent Care Expenses

Maryland provides two separate tax benefits for child or dependent care costs: a subtraction that reduces your taxable income and a tax credit that reduces the amount of tax you owe.

Subtraction

The state subtraction benefit, which is claimed on Form 502, reduces your taxable income. If you have eligible child or dependent care expenses, first determine your federal tax credit by completing the calculation on federal Form 2441. Transfer the amount of child or dependent care expenses (not the federal tax credit) claimed on line 6 of the federal form to line 9 of Maryland Form 502. You can subtract actual expenses up to the legal maximums of $3,000 for one child or $6,000 for two or more children.

Tax credit

The tax credit, which is claimed on Form 502CR, reduces the amount of tax you owe. If you were eligible for a child and dependent care credit on your federal income tax return, you may be entitled to a tax credit on your Maryland income tax return.

The tax credit does not affect the treatment or eligibility of the state tax subtraction for child care costs.

For more information about the tax credit, see Child and Dependent Care Tax Credit



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