Earned Income Tax Credit (EITC)
The Earned Income Tax Credit helps low- to moderate-income workers and families get a tax break. The IRS has a helpful tool that can help you determine if you qualify.
Homeowners’ Property Tax Credit
The Homeowners’ Property Tax Credit sets a limit on the amount of property taxes any homeowner must pay based upon his or her income. To Qualify, you must meet these four requirements:
- You must own or have a legal interest in the property.
- The dwelling on which you are seeking the tax credit must be your principal residence where you live at least six months of the year, including July 1, unless you are a recent home purchaser or unless you are unable to do so because of your health or need of special care.
- Your net worth, not including the value of the property on which you are seeking the credit or any qualified retirement savings or Individual Retirement Accounts, must be less than $200,000.
- Your combined gross household income cannot exceed $60,000.
Homeowners who file and qualify by April 15 will receive the credit directly on their tax bill
2022 Homeowners’ Tax Credit Applications will become available on February 15, 2022.
The Maryland Homestead Credit limits the increase in taxable assessments each year to a fixed percentage. The credit may significantly reduce the amount of property taxes you owe. The tax credit will be granted if the following conditions are met during the previous tax year:
- The property was not transferred to new ownership.
- There was no change in the zoning classification requested by the homeowner resulting in an increased value of the property.
- A substantial change did not occur in the use of the property.
- A further condition is that the dwelling must be the owner’s principal residence and the owner must have lived in it for at least six months of the year, including July 1 of the year for which the credit is applicable, unless the owner was temporarily unable to do so by reason of illness or need of special care. An owner can receive a credit only on one property—the principal residence.
- There are also additional conditions regarding razing and rebuilding dwellings.
You can apply for the Homestead Credit online here.
Renters’ Tax Credit
The Renters’ Tax Credit Program provides property tax credits for renters who meet certain requirements and is based upon the relationship between rent and income. The rented dwelling may be an apartment in an individual house or any type of apartment building, duplex, co-op, condominium, house trailer, or mobile home pad. The dwelling must be the principal residence in Maryland and the renter must live there at least six months of the year. You are only eligible to receive a tax credit for rent paid in the State of Maryland.
2022 Renters’ Tax Credit Applications will become available on February 15, 2022.