What deductions and credits are available to Maryland taxpayers?

Maryland taxpayers have access to a variety of deductions and credits designed to reduce their overall tax liability. Some of the key deductions available include personal exemptions, which allow taxpayers to exempt a certain amount for themselves and their dependents from taxable income. This is in addition to the standard deduction, which for many taxpayers can provide a significant reduction in taxable income. Taxpayers may also benefit from itemized deductions, which can include medical expenses, mortgage interest, and charitable contributions, subject to specific limitations. Another important deduction is the Maryland State and local income tax deduction, which enables taxpayers to deduct the amount they paid in state and local income taxes in the previous year. In terms of tax credits, Maryland offers several valuable options. One prominent credit is the Earned Income Tax Credit, which assists low- to moderate-income working individuals and families by reducing the amount of tax owed. Taxpayers may also qualify for the Maryland Child and Dependent Care Credit, which helps reimburse some of the costs associated with childcare for working parents. Additionally, there are credits available for contributions made to certain college savings plans, often referred to as 529 plans, as well as the credit for individuals who purchase an electric vehicle. The Maryland Comptroller’s Office provides detailed information on eligibility requirements, limits, and application procedures for these deductions and credits, making it a valuable resource for taxpayers seeking to maximize their refunds or minimize their liabilities. For current and specific information, taxpayers are encouraged to visit the official website of the Maryland Comptroller, where they can also find contact details and further assistance if needed.