Rising prices of food and other things have disrupted the budgets of many Americans. So it’s important that people take advantage of all the federal and state benefits that are still available. Such a benefit is available to Maryland residents, who can still claim the student loan tax credit. This Maryland student incentive check can give up to $1,000 to eligible recipients, and the application deadline is less than three weeks away.
When is the deadline?
The Maryland student loan tax credit has been providing relief to residents for years. More than 40,000 inhabitants have received the tax credit since the start of the program in 2017, including about 9,000 residents who benefited from this discount last year.
More than $40 million has been distributed through the program since 2017, according to a press release from the auditor’s office. The Maryland Higher Education Commission (MHEC) is responsible for administering this program.
“Going to college may seem out of reach for many Marylanders given the sheer expense, but tax credits like this help make it possible. I urge everyone to sign up now before time runs out,” Controller Peter Franchot said in a press release.
Under the program, residents who make eligible undergraduate and/or graduate payments on loans from an accredited college or university may receive an income tax credit.
The deadline for applying for this year’s Maryland student incentive check is September 15.
Maryland Student Stimulus Check: Who Gets It?
Residents do not have to be a college graduate to qualify for the tax credit, but to be eligible they must claim a Maryland resident for the 2022 tax year and file 2022 state income taxes for the state of Maryland.
Another requirement is that the applicants must have had at least $20,000 in student debt and the outstanding balance must be at least $5,000 at the time the tax credit is claimed.
Applicants with a higher debt-to-income ratio, college graduates in the state, those who have not already received the tax credit and qualified for in-state tuition will be given priority. It is a requirement that the applicants use the tax credit for their student loan debt otherwise they will have to repay the credit.
One point to note is that applicants who attended a school outside Maryland are also eligible for the tax credit, but their amount of tax credit may be less than those who attended a school in Maryland. In 2021, those who attended school in the state received about $1,067, compared to $875 for those who attended an out-of-state school.
Visit the Maryland Higher Education Commission website for more information about the program, including how to apply and eligibility. Applicants may also contact the Maryland Higher Education Commission at 410-767-3300 or 1-800-974-0203 or visit with questions about the program.
This article originally appeared on ValueWalk
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