Are there any special credits or incentives for filing state taxes?

Tax credits are available to certain taxpayers at both the state and federal levels. A tax credit is a tax incentive that allows qualified taxpayers to reduce their tax obligations to the state. Tax credits are available to individuals and businesses and offer incentives to support growth and business activities in Vermont. You can apply for this credit if your income was taxed by California or another state.

The credit will offset taxes paid to the other state, so you won't have to pay taxes twice. Donors who make a donation to a qualified permanent endowment fund located at an eligible institution of higher education may be entitled to an income tax credit from the state of Maryland. If the tax credit allowed in any tax year exceeds the total tax that would otherwise be paid by the qualifying theater production entity for that tax year, the qualifying theater production entity can request a refund for the amount of the franchise. Businesses or individuals who make a donation to a qualified permanent endowment fund at an eligible community foundation may be eligible to receive an income tax credit from the state of Maryland.

Businesses or individuals who contribute to approved community investment programs may be eligible to receive an income tax credit from the state of Maryland. The HBCU tax credit request will be accepted starting July 1 of the fiscal year in which the donation is made. To calculate the credit, use Schedule IN-117, Vermont Credit for income tax paid to another Canadian state or province. The income tax credit is based on the number of qualifying positions created or retained for an aerospace, electronic, or defense contract tax credit project.

If you have capital gains, business income, or have made adjustments to calculate your federal adjusted gross income, see Technical Bulletin 38, Credit for Taxes Paid to Another Canadian State or Province; Limitations. If you qualify for the federal average agricultural income credit, you're eligible for the state tax credit. If you qualify for the federal credit for the elderly or disabled, you can apply for the appropriate state tax credit. The credit is equivalent to 5% of the compensation paid during the first 12 consecutive months to an employee hired to fill a difficult job and is allowed in the first fiscal year following the fiscal year in which the employee completes the 12-month period of employment.

There are several federal tax credits to help taxpayers, mainly those from middle- and low-income households, reduce the amount of taxes they owe or get the highest possible refund. The total amount of final tax credit certificates issued by the DOC each year is limited to the amount allocated to the Reserve Fund in the state budget. As for charitable contributions that are eligible for the Vermont tax credit for the Vermont tax credit, Vermont law follows federal law 26 U. A final credit certificate will be issued to the applicant stating the amount of the tax credit to which they are entitled.

You may be eligible to apply for some valuable personal income tax credits available on your Maryland tax return.

Glenna Penrod
Glenna Penrod

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