§ 10-704. Earned income tax credit
West's Annotated Code of MarylandTax-GeneralEffective: June 1, 2023
Effective: June 1, 2023
MD Code, Tax - General, § 10-704
§ 10-704. Earned income tax credit
(a) In this section, “taxpayer” means:
(b)(1) A resident who is a taxpayer may claim a credit against the State income tax for a taxable year in the amount determined under subsection (c) of this section for earned income.
(c)(1) Except as provided in paragraphs (2) and (3) of this subsection and subject to subsection (e) of this section, the credit allowed against the State income tax under subsection (b)(1) of this section is the lesser of:
(2)(i) Subject to subparagraph (iii) of this paragraph and subsection (e) of this section, a resident may claim a refund in the amount, if any, by which the applicable percentage specified in subparagraph (ii) of this paragraph of the earned income credit allowable for the taxable year under § 32 of the Internal Revenue Code exceeds the State income tax for the taxable year.
(ii) Subject to subparagraph (iii) of this paragraph, the credit allowed against the State income tax under subsection (b)(1) of this section for an individual without a qualifying child is equal to 100% of the earned income credit allowable for a taxable year under § 32 of the Internal Revenue Code.
(d)(1) Except as provided in paragraph (2) of this subsection and subject to subsection (e) of this section, the credit allowed against the county income tax under subsection (b)(2) of this section is the lesser of:
(iii) If a county provides for a refundable county earned income credit under this paragraph, a resident may claim a refund of the amount, if any, by which the product of multiplying the credit allowable for the taxable year under § 32 of the Internal Revenue Code or that would have been allowable but for the limitation under § 32(m) of the Internal Revenue Code by 5 times the county income tax rate for the taxable year exceeds the county income tax for the taxable year.
(e)(1) Subject to paragraph (2) of this subsection, for an individual who is a resident of the State for only a part of the year, the amount of the credit or refund allowed under this section shall be determined based on the part of the earned income credit allowable for the taxable year under § 32 of the Internal Revenue Code that is attributable to Maryland, determined by multiplying the federal earned income credit by a fraction:
(2) For purposes of determining the amount of the credit or refund under paragraph (1) of this subsection, the part of the earned income credit allowable for the taxable year under § 32 of the Internal Revenue Code is calculated without regard to the limitation under § 32(m) of the Internal Revenue Code.
Credits
Added by Acts 1988, c. 2, § 1, eff. Jan. 1, 1989. Amended by Acts 1998, c. 5, § 1, eff. July 1, 1998; Acts 1999, c. 493, § 1, eff. May 13, 1999; Acts 2000, c. 510, § 1, eff. July 1, 2000; Acts 2001, c. 581, § 1, eff. July 1, 2001; Acts 2007, 1st Sp. Sess., c. 3, § 1, eff. Jan. 1, 2008; Acts 2014, c. 389, § 1, eff. July 1, 2014; Acts 2015, c. 143, § 1, eff. May 12, 2015; Acts 2015, c. 489, § 1, eff. June 1, 2015; Acts 2018, c. 611, § 1, eff. July 1, 2018; Acts 2018, c. 612, § 1, eff. July 1, 2018; Acts 2021, c. 39, § 1, eff. Feb. 15, 2021; Acts 2021, c. 40, § 1, eff. March 5, 2021; Acts 2023, c. 3, § 1, eff. June 1, 2023; Acts 2023, c. 4, § 1, eff. June 1, 2023.
MD Code, Tax - General, § 10-704, MD TAX GENERAL § 10-704
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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