Deadline Looms for Residents of This State to File for Tax Credit in September

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Residents of Maryland have a limited time to apply for tax credits aimed at easing student loan burdens. The Maryland Higher Education Commission's 2023 Student Loan Debt Relief Tax Credit program will close its application window on September 15, with $18 million in credits up for grabs for those filing their 2023 tax returns.

To qualify, individuals must meet certain criteria: They must be Maryland residents for the 2023 tax year.

They must file their 2023 Maryland state income taxes.

They should have initially incurred a minimum of $20,000 in undergraduate and/or graduate student loan debt.

They need to have at least $5,000 in outstanding student loan debt at the time of applying.

Recipients of this tax credit will need to demonstrate that they've used the full amount to repay their student loans, or they'll be required to return the funds to the state.

Dr. Sanjay Rai, Acting Secretary of MHEC, emphasized the importance of seizing this opportunity, stating that the brief application process could lead to significant tax relief, which can be used to alleviate existing student loan debt.

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