Maryland's application process for student loan debt relief tax credit begins July 1
BALTIMORE -- Maryland taxpayers who are looking to use a tax credit for their student loans should complete a tax credit application for the 2023 tax year.
The application process for the 2023 tax year opens on July 1 and will remain open until Sept. 15.
Eligible applicants will have incurred at least $20,000 in undergraduate or graduate student loan debt and have at least $5,000 in outstanding student loan debt at the time of applying for the tax credit, according to a state fact sheet.
Anyone who receives the Student Loan Debt Relief Tax Credit must pay the amount awarded toward their college loan debt and provide proof of payment to the Maryland Higher Education Commission within three years from the close of the taxable year for which the credit applies.
Those loan recipients who cannot provide proof that they paid down their college loan debt will be required to return the money to the state through a process known as "recapture," according to a state fact sheet.
The college loan relief laws that are currently in effect have no impact on the Student Loan Debt Relief Tax Credit program, per the fact sheet.