Why are state retirement pickup contributions a required addition to my Maryland income?

Pickup contributions to a state retirement or a pension system member are stated separately on your Form W-2 (W2). The amount entered here should match any amounts entered in Box 14 that are labeled as "STPICKUP".

The tax on this portion of your wages is deferred for federal purposes, but unfortunately not for state purposes. For more information, see Administrative Release 21.

Is there a tax break for contributions I make under the Maryland Prepaid College Trust?

If you contribute to the Maryland Prepaid College Trust, you are eligible for a subtraction from income. You may claim a Maryland-only subtraction of up to $2,500 per contract purchased for advanced tuition payments. For more details see Administrative Release 32.

What if I contributed more than $2,500 during the taxable year to the Maryland Prepaid College Trust?

If you've contributed more than $2,500 during the taxable year, the excess may be carried over until the full amount of the payments has been taken as a subtraction.

What is the Maryland Quality Teacher Incentive Credit?

If you are a qualified Maryland teacher, you may be able to claim a credit against your state tax liability for tuition paid for graduate-level courses that are required to maintain certification. Each spouse that qualifies may claim this credit.

Do I qualify for the Quality Teacher Incentive Credit?

You can claim the Quality Teacher Incentive Credit if you meet all of the following criteria:
  • You currently hold a standard professional certificate or advanced professional certificate.
  • You are employed by a county/city board of education in Maryland, a state or local correctional facility, or a juvenile correctional facility.
  • You teach in a public school or qualified facility and receive a satisfactory performance.
  • You successfully complete the courses with a grade of B or better.
  • You have not been fully reimbursed by the state/county/city for these expenses. Only the unreimbursed portion qualifies for the credit.

What is the Long-Term Care Insurance Credit?

A one-time credit may be claimed against state income tax for the payment of qualified long-term care (LTC) insurance premiums as defined by the Internal Revenue Service (Publication 502) for a policy to insure yourself, your spouse, parent, stepparent, child, or stepchild who is a resident of Maryland and was NOT covered by long-term care insurance before July 1, 2000.

If the credit is more than the tax liability, the unused credit may NOT be carried forward to any other tax year. The credit is equal to the LTC premiums paid with a maximum per insured of:
  • $370.00 for a person 40 years or under
  • $500.00 for a person over 40 years old

Do I qualify for the Long-Term Insurance Care Credit?

To qualify for the credit, all of the following must apply:
  • The insured must be a Maryland resident.
  • The insured must be the taxpayer, the taxpayer's spouse, parent, stepparent, child or stepchild.
  • The insured cannot have been covered by long-term care insurance before July 1, 2000.
  • This tax credit must not have already been claimed for the insured by the taxpayer or by anyone else in any tax year.

How will contributions to the Chesapeake Bay and Endangered Species Fund be used?

Your contribution supports on-the-ground projects that:
  • Restore wetlands
  • Plant trees and bay grasses
  • Reintroduce oyster and fish populations
  • Actively protect threatened plants and animals
Donations are divided evenly between the Chesapeake Bay Trust and the Wildlife and Heritage Division of the Maryland Department of Natural Resources.

For more information, visit www.cbtrust.org.

How will contributions to the Maryland Cancer Fund be used?

Your contribution supports grants for cancer prevention, screening, treatment, and research.

For more information, call DHMH at 410-767-6213 or visit mdcancerfund.org.

What are estimated tax payments? What do I enter on this screen?

Estimated tax payments include payments you have already made to the state that were credited toward your taxes owed this year.
  • Enter any estimated tax payments you made for 2014.
  • Enter any amounts credited from your 2013 return.
  • Enter any amount prepaid with extension requests.

Do NOT enter any amount of your 2014 Maryland income tax withheld by your employer(s) as shown on any wage or tax statements.

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