§ 10-716. Child and dependent care tax credit
West's Annotated Code of MarylandTax-GeneralEffective: July 1, 2023
Effective: July 1, 2023
MD Code, Tax - General, § 10-716
§ 10-716. Child and dependent care tax credit
(b) A resident who is a taxpayer may claim a credit against the State income tax as provided in this section for expenses paid by the taxpayer during a taxable year for the care of a qualifying individual if the federal adjusted gross income of the taxpayer for the taxable year does not exceed:
(c) Subject to subsection (d) of this section and except as provided in subsection (e) of this section, the credit allowed under subsection (b) of this section equals the lesser of:
(d)(1) If the federal adjusted gross income of a taxpayer filing an individual return for the taxable year exceeds $30,000, the credit otherwise allowed under this section shall be reduced by 1% for each $2,000 or fraction of $2,000 by which the individual's federal adjusted gross income exceeds $30,000.
(2) In the case of an individual who is a member of a married couple filing a joint income tax return, if the individual's federal adjusted gross income for the taxable year exceeds $50,000, the credit otherwise allowed under this section shall be reduced by 1% for each $3,000 or fraction of $3,000 by which the individual's federal adjusted gross income exceeds $50,000.
(e) If the credit allowed under this section in any taxable year exceeds the State income tax for that taxable year, the taxpayer may claim a refund in the amount of the excess if the taxpayer's federal adjusted gross income does not exceed:
(f)(1) For each taxable year beginning after December 31, 2019, the maximum income thresholds under subsection (b) of this section and the maximum income thresholds under subsection (e) of this section shall be increased by an amount equal to the product of the maximum income thresholds and the cost-of-living adjustment specified in this subsection.
(2) For purposes of this subsection, the cost-of-living adjustment is the cost-of-living adjustment within the meaning of § 1(f)(3) of the Internal Revenue Code for the calendar year in which a taxable year begins, as determined by the Comptroller, by substituting “calendar year 2018” for “calendar year 2016” in § 1(f)(3)(A) of the Internal Revenue Code.
Credits
Added by Acts 1999, c. 583, § 1, eff. July 1, 1999; Acts 1999, c. 584, § 1, eff. July 1, 1999. Amended by Acts 2000, c. 520, § 1, eff. July 1, 2000; Acts 2001, c. 515, § 1, eff. July 1, 2001; Acts 2019, c. 432, § 1, eff. July 1, 2019; Acts 2023, c. 21, § 1, eff. July 1, 2023.
MD Code, Tax - General, § 10-716, MD TAX GENERAL § 10-716
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.
End of Document |