How does the State income deduction work for the Prepaid College Trust?
Maryland taxpayers receive a maximum annual income deduction of $2,500 per Account on their Maryland tax return. The Account Holder may take any amount disallowed in one year as an income deduction in succeeding taxable years until the full amount contributed to the Account has been deducted, subject to the $2,500 annual limit. Although individuals other than the Account Holder may make contributions to an Account, only an Account Holder may take the annual income deduction and, only on amounts contributed by the Account Holder. Please note that your Account statements are not tax documents and should not be submitted with your tax forms. For additional information on Prepaid College Trust tax benefits for Maryland taxpayers, please refer to Maryland Income Tax Administrative Release No. 32, which can be obtained at www.marylandtaxes.com or by calling 1-800-MD-TAXES. To take advantage of this income deduction for 2008, your contribution needs to be postmarked by December 31, 2008.
Maryland taxpayers receive a maximum annual income deduction of $2,500 per Account on their Maryland tax return. The Account Holder may take any amount disallowed in one year as an income deduction in succeeding taxable years until the full amount contributed to the Account has been deducted, subject to the $2,500 annual limit. Although individuals other than the Account Holder may make contributions to an Account, only an Account Holder may take the annual income deduction and, only on amounts contributed by the Account Holder. Please note that your Account statements are not tax documents and should not be submitted with your tax forms. For additional information on Prepaid College Trust tax benefits for Maryland taxpayers, please refer to Maryland Income Tax Administrative Release No. 32, which can be obtained at www.marylandtaxes.com or by calling 1-800-MD-TAXES. To take advantage of this income deduction for 2010, your contribution needs to be postmarked by December 31, 2010.
