Child tax credit in Maryland

Does Maryland Have a Child Tax Credit?

Short answer: Yes: $500 per child under 6, or under 17 with a disability, if federal AGI is $15,000 or less. Reduced by $50 per $1,000 above $15,000, so it's gone above $24,000 AGI. Refundable.

Child care: 32% of the federal child and dependent care credit. Phases down above $30,000 AGI ($50,000 joint), with no credit above $112,100 ($174,300 joint) for 2025. Refundable if income is under about $60,900 ($91,400 joint). The phase-down from $15,000 to $24,000 (replacing a hard $15,000 cutoff) took effect for 2025 under the Budget Reconciliation and Financing Act of 2025. A 2026 law lets counties create matching local child grants starting 2027. Dependent exemption is $3,200, phased out at higher incomes. The federal child tax credit is $2,200 per child under 17 for 2026 and is claimed on Form 1040 regardless of state.

Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.