How does the State income deduction work for the Maryland College Investment Plan?
The State income deduction is available only to Maryland taxpayers. Currently, Maryland taxpayers receive a maximum $2,500 deduction from their State adjusted gross income annually per Beneficiary for contributions to the College Investment Plan. The Account Holder is the only person who can take advantage of the Maryland State income deduction for contributions he or she has made. Contributions made in excess of $2,500 per Beneficiary in a single year may be carried forward and deducted from your State adjusted gross income for up to 10 additional years.
