22. Is there a tax break for contributions I make to College Savings Plans of Maryland?
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 up in the next 10 succeeding taxable years for the Maryland College Investment Plan.
For more information, see Administrative Release 32: Maryland College Savings Plan Tax Benefits.