Written by a parent, not a doctor. Nothing here is medical advice.

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Maryland program

Maryland's child tax credit at tax time

A refundable Maryland tax credit for qualifying children in families with very low annual income.

What it is

A refundable Maryland tax credit for qualifying children in families with very low annual income.

A low-income year can change the help available at tax time. This credit can be refunded even when no Maryland income tax is owed. Age or disability and the family's annual tax income both matter.

Eligibility rules
  • A qualifying dependent is under six, or under 17 with a disability under Maryland's special-education definition. That branch requires an appropriate assessment and need for special education and related services. Cancer or an SSI award alone does not establish it.
  • The statutory income threshold is $15,000 of federal adjusted gross income. The credit falls by $50 for each $1,000, or fraction of $1,000, above that threshold.
What you get
  • Up to $500 per qualifying child under the statutory formula.
  • A refund of the credit remaining after Maryland tax is paid.
What the help covers
  • The credit is refundable. The total depends on qualifying children and the statutory phaseout calculation.
If you decide to apply
  1. Ask a tax preparer or the Comptroller to check the Maryland child tax credit for your return year.
  2. Have annual income records and information about qualifying dependents ready.
  3. Ask your tax preparer to explain the return-year instructions and how the credit would fit your Maryland return.

Comptroller of Maryland · 1-800-638-2937 · Official page ↗

After you apply
  • The Comptroller handles the credit through the state income tax return rather than a separate benefits application.
  • For tax year 2026, the statute provides up to $500 per qualifying dependent. Annual federal adjusted gross income above $15,000 reduces the credit. The disability branch uses Maryland's special-education definition, not cancer alone. The ordinary calendar-year filing date is April 15, 2027, subject to extensions or later relief. A tax preparer confirms the final form, line, required documents and multiple-child phaseout calculation for that return year.
Good to know

This uses annual federal adjusted gross income, not just the month when work stops.

Other details
  • A cancer diagnosis alone does not establish the tax-law disability requirement. The return instructions govern the required support.
Official sources
Ask your social worker

“Could our child's age or disability and this year's income qualify us for Maryland's credit? Could you help find tax assistance to check the rules and claim it if appropriate?”

Why I’m asking: I do not want to miss a refund that could help after a year of reduced earnings.

More background and detailed requirements
Additional program information and published rules

Who does what

The three parts, side by side. The agency decides; nobody on this page does.

You

Claim it on the return for the year income was low.

Your social worker

A free tax preparation service can check it for you.

The care team

Records and letters when the application asks for them.

Who decides
The Comptroller of Maryland, on the tax return.
Ask the agency
“Our income dropped sharply this year because of my child's treatment. Does the Maryland child tax credit apply for us, and is it refundable?”

How to apply

First step: Check it when you file the return for the year income dropped.

  1. When you file, check whether the credit applies for the treatment year.
  2. If income dropped mid-year, the year of the drop is the year to look at.

Official application / program page ↗

Where it starts: Claim it on the Maryland income tax return.

What to gather

  • The federal return for that year
  • The children's details

How long: Paid with the tax refund.

What a yes looks like

The credit appears on the state return and increases the refund.

What a no looks like, and the next move

Usually income. Check whether the year income dropped is the year you are filing for.

Watch out

  • The credit uses annual federal adjusted gross income and the qualifying-dependent calculation, not a single month's pay or a universal $25,000 ceiling.
  • It is claimed on the state return, not through an agency.
  • The current return instructions were not retrieved, so check the form before relying on the exact threshold.

Dates that change this

2026-09-10: These figures come from the codified statute. The current return instructions and the original tax year were not retrieved, so check the return before relying on the exact threshold treatment.

The numbers and the rules

The arcane layer, kept on purpose. Checked September 11, 2026.

What it is worth

A refundable credit of up to $500 per qualifying child, reduced by $50 for each $1,000 or fraction of annual federal adjusted gross income above $15,000 under the return-year calculation.

  • $500/year — Credit per qualified child
  • $15,000/year — Federal adjusted gross income threshold in the statute
  • $50/year — Credit reduction for each $1,000 or fraction above the threshold

Legal protection: The excess over the state tax owed can be refunded

What it costs the family: None.

The eligibility facts, as published

Child
A qualifying dependent under six, or under 17 with a disability under Education §8-401 involving an appropriate assessment and need for special education and related services; diagnosis or SSI alone does not establish the tax definition.
Income
$15,000 of federal adjusted gross income, with a phaseout of $50 per $1,000 or fraction above it
Refundable
The excess over the tax owed can be refunded

The trap: The credit uses annual federal adjusted gross income, with a $50 reduction per $1,000 or fraction above $15,000. Current monthly income does not decide it, and no universal $25,000 cutoff applies without the return-year dependent calculation.

Where I read this

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