Information on How to File Your Tax Credit from the Maryland Higher Education Commission

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​ Student Loan Debt Relief Tax Credit

 
On July 2, 2018, the Maryland Higher Education Commission (MHEC) will be making the 2018 Student Loan Debt Relief Tax Credit information available online.

 
The tax credit will be available to Maryland taxpayers who:

 
1.  Are filing Maryland State Income Taxes for the 2018 tax year;

 
2.  Have incurred at least $20,000 undergraduate and/or graduate student loan debt, or both; 

 
3.  Have at least $5,000 in outstanding student loan debt remaining during the 2018 tax year for which they are applying;

 
4.  Have completed and submitted an application to the Maryland Higher Education Commission by September 15, 2018; and

 
5.  Have submitted graduate and/or undergraduate student loan information, Maryland Income Tax Information and college transcripts.

 
​​​​​​​​Proof of Payment to Lender
 
Upon receiving the Student Loan Debt Relief Tax Credit for 2017, each recipient must use the credit within two years to pay down the balance of the student loan debt.  Failure to do so will result in recapture of credit back by the state.
 
Recipients of the Student Loan Debt Relief Tax Credit have two option for debt repayment:
(1) Make a one-time payment ($1,201.00 or $1,000.00) to the lender, or
(2) Make monthly payments to the lender until the amount of the credit is paid to the lender (i.e. - if the recipient received a $1,000.00 credit, the recipient could make ten payments of $100.00)
 
Providing Documentation of Proof of Payment:
(1) One-time payment -  A copy of transaction log from the lender providing proof that amount was paid to the lender
(2) Monthly Payments - A copy of transaction log from the lender showing monthly payments totaling the amount of the credit
 
Mail All Proof of Payments to:
Maryland Higher Education Commission
Student Loan Debt Relief Tax Credit
6 N. Liberty Street, 10th floor
Baltimore, MD 21201
 
PLEASE PROVIDE A VALID EMAIL ADDRESS ALONG WITH PROOF OF PAYMENT. Upon receiving documentation, a confirmation email will be sent.
 
For more information, call Mr. Thomas Mason at 410-767-7266 or Mr. Anthony Reiner 410-767-3087.
 
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