The Maryland 529 Plan, also known as the Maryland College Investment Plan or MCIP, is a tax-advantaged savings plan designed to help families save for future education expenses. The plan offers a range of investment options, including age-based portfolios and individual fund options, to suit different risk tolerances and investment goals.
Contributions to the Maryland 529 Plan can be used to pay for qualified education expenses at eligible institutions, including tuition, fees, books, supplies, and room and board. Earnings in the plan grow tax-deferred, and withdrawals for qualified expenses are tax-free.
Md 529 Plan Tax Deduction Form
How to Claim the Maryland 529 Plan Tax Deduction
To claim the Maryland 529 Plan tax deduction on your state tax return, you will need to fill out Form 502B, the Maryland Subtraction Modification for Contributing to Maryland 529 Plans. This form allows you to subtract up to $2,500 per beneficiary ($5,000 for married couples filing jointly) from your Maryland taxable income for contributions made to the Maryland 529 Plan during the tax year.
When completing Form 502B, you will need to provide details about your contributions to the Maryland 529 Plan, including the name of the account owner, the beneficiary’s name, and the amount contributed. Be sure to keep records of your contributions and any supporting documentation in case of an audit.
Deadline for Claiming the Maryland 529 Plan Tax Deduction
The deadline for claiming the Maryland 529 Plan tax deduction is typically the same as the deadline for filing your Maryland state tax return, which is April 15th for most taxpayers. However, it’s always a good idea to double-check the current tax year’s deadline with the Maryland Comptroller’s office to ensure you don’t miss out on this valuable tax benefit.
By taking advantage of the Maryland 529 Plan tax deduction, you can save money on your state taxes while also investing in your child’s future education. Be sure to consult with a tax professional or financial advisor for personalized advice on maximizing the benefits of the Maryland 529 Plan for your family.