Student Loan Debt Relief Tax Credit for Tax Year 2026 Details

Instructions

Review the steps - read carefully

1. INSTRUCTIONS

   Please read all instructions carefully. To increase your opportunity for accuracy, print these OneStop instructions to hard copy and refer to them while completing your application. The Student Loan Debt Tax Credit application and instructions change every year. Applications containing errors or omissions will be returned to you and may or may not be accepted for another review during the remaining time available for the examination process. The deadline to apply for the tax credit is September 15, 2026 at 11:59:00 pm (EDT).

   
   

   I. When setting up your online OneStop account, the first and last name on your OneStop account must match the first and last name on your application. Permanent email addresses are required. This will enable you to receive tax credit awards and other essential correspondence from the Maryland Higher Education Commission (MHEC). Do not use an email address that might change, or a temporary email address such as a workplace or college email. Do not use another person's email address. For confidentiality purposes, all MHEC correspondence will be with the applicant only.

   
   

   II. Set the following email addresses to NOT go to your spam. You will need these addresses in order to receive important correspondence from MHEC:
   [email protected]
   [email protected]

   [email protected]

   
   

   III. If you already have a OneStop account from any prior year, it is advisable to use it again this year. However, do not use it if it is another person's name. For confidentiality purposes, MHEC will reject applications where the first and last name on your OneStop account does not match the first and last name on your application.

   
   

   IV. Do not abandon an application that you already started. You can save it and return to it later.

   
   

   V. Duplicate applications will be rejected. Entering more than one application puts all of your applications at risk of being excluded. Only the first application you create will be reviewed and taken into consideration.

   
   

   VI. NAME CHANGE: Your application must be in your legal first and last name. If your first and last name is not the same throughout this application's data entry fields and attachments, you must attach a Court Ordered Decree for Name Change, or your marriage certificate. The document must show your previous name and your current name all on the same document. Social Security cards, birth certificates, passports, and driver's licenses do not qualify.

   
   

   VII. To pevent errors or omissions, print these OneStop instructions to hard copy and refer to them while completing your application.

   
   

   VIII. MHEC is doing its part to safeguard your confidential information. To minimize your Personally Identifiable Information (PII), do not submit more attachments than those requested in the application's instructions.

2. LOAN INFORMATION & SUPPORTING DOCUMENTATION

   The following must be included with your application. Further instructions are included in the application. Fillable/changeable documents such as Word or Excel are not acceptable. Plain, unlocked PDF is the preferred format. MHEC is unable to open and view password protected documents.

   -Documentation from your lenders showing the educational loans that qualify for the tax credit. Documentation must correspond to the colleges or universities you graduated from. Documentation must include:

   -lender’s name, address, phone number; and
   -borrower’s name, account numbers, debt amount initially incurred, loan balance currently due

   Parent Plus loans and all other parent loans are not accepted. Failure to provide proper lender documents could disqualify your application. Please do not get disqualified due to incorrect lender documents. Click here to see Lender Document Do's & Don'ts.

   -Total Student Loan Amount Initially Disbursed to You. Provide the TOTAL amount of all loans you initially borrowed for your undergraduate and/or graduate education. The total must be at least $20,000. Dates on all lender documents must be within two months of the date of your application.

   -Eligible Undergraduate and/or Graduate Student Loan Balance Still Due. Provide the total remaining loan balance STILL DUE on all undergraduate and/or graduate student loan debt as of the submission date of your application. The total must be at least $5,000. Dates on all lender documents must be within two months of the date of your application.

   -DO NOT include loans that are paid in full at the time of applying for the tax credit.

3. INCOME INFORMATION & SUPPORTING DOCUMENTATION

   The following must be included with your application. Further instructions are included in the application. Fillable/changeable documents such as Word or Excel are not acceptable. Plain, unlocked PDF is the preferred format. MHEC is unable to open and view password protected documents.

   -A copy of your Maryland income tax return from the most recent tax year that you officially filed your return. You do not qualify for the tax credit if you do not provide the Maryland form 502 tax return. Make sure your tax return is not changeable or fillable. If it is, make a copy of it and attach the copy to your application instead.

   -Maryland Adjusted Gross Income. Enter the Maryland Adjusted Gross Income reported on your Maryland State Income Tax return form 502 (line 16) for the most recent year that you officially filed taxes. Do not prorate your Adjusted Gross Income amount for any reason even if married filing jointly.

4. DEGREE INFORMATION & SUPPORTING DOCUMENTATION

   The following must be included with your application. Further instructions are included in the application. Fillable/changeable documents such as Word or Excel are not acceptable. Plain, unlocked PDF is the preferred format. MHEC is unable to open and view password protected documents.

   -Transcripts from each undergraduate and/or graduate institution from which you graduated. Include only those transcripts that correspond to the college loan debt information you intend to include on your application. Name of institution and student must be on the transcripts. Names of institution or student buried in a header or footer are not sufficient. Unofficial and official transcripts are acceptable. Transcripts must show the name of the degree earned and the date the degree was conferred. CIRCLE, OR MARK WITH AN ASTERISK your name, the name of the institution, the name of degree earned and date conferred. Highlighting does not show up. If necessary, make a copy of the transcript then mark and attach only the copy.

   -Indicate if any of your tuition was classified as in-state (Maryland) tuition by any undergraduate and/or graduate college or university you graduated from.

   
   

5. TAX CREDIT INFORMATION REQUIRED IF YOU:

   NOTE: MHEC is working to resolve OneStop system issues preventing the online submission of tax year 2025 proof of payment documents. This will not negatively impact your tax year 2026 application, specifically your answers to questions 9, 9b, 9c, and 9d. Impact: None. Your 2026 application (questions 9, 9b, 9c, and 9d) will not be penalized.

   I. Previously RECEIVED a tax credit award. Even if you did not claim the tax credit on your Maryland income tax return, indicate all tax years for which you received a tax credit award.

   II. Previously CLAIMED the tax credit award. If you claimed the tax credit on your Maryland income tax return, indicate all tax years for which you claimed it. The years selected must correspond to the years appearing at the top of your award Certificate of Approval.

   
   

6. SIGN THE APPLICATION

   By signing the application, you are affirming under penalty of perjury that the information in the application, including attachments, is true and correct. You also are agreeing that the credit will be used solely for the repayment of eligible student loans, and that the failure to abide by this requirement, including the failure to provide to Maryland Higher Education Commission (MHEC) documentation showing that you have complied with this requirement, may result in the revocation and recapture of your credit. In addition, you are agreeing to the release of certain information by your educational and financial institutions. Review the requirements and conditions carefully before signing and submitting the application.

7. FOLLOW-UP DOCUMENTATION

   If you receive a tax credit and claim it on your Maryland income tax return, then you must submit sufficient documentation to MHEC by December 31, 2029, proving that you used the amount of the tax credit you claimed on your tax return for the repayment of the student loans you provided on your application. Failure to provide this documentation will result in the revocation and recapture of your credit.

8. TAX-GENERAL ARTICLE OF THE ANNOTATED CODE OF MARYLAND Maryland

   The Student Loan Debt Relief Tax Credit is a program, created under § 10-740 of the Tax-General Article of the Annotated Code of Maryland, to provide an income tax credit for Maryland resident taxpayers who are making eligible undergraduate and/or graduate education loan payments on loans from an accredited college or university. These may include loans obtained to earn an undergraduate and/or graduate degree, such as associate, bachelor, masters, or doctorate (professional) degree. Award prioritization criteria are set forth in § 10-740 of the Tax-General Article of the Annotated Code of Maryland, and in the implementing regulations.

9. Email your questions to:

   [email protected]