College Savings Plans

If you contribute to the Maryland Prepaid College Trust, the Maryland College Investment Plan or the Maryland Broker-Dealer College Investment Plan, you may claim a deduction that is available only on the Maryland income tax return, using Form 502.

You may be able to subtract up to $2,500 in advanced tuition payments made to the Maryland Prepaid College Trust and up to $2,500 per taxpayer per beneficiary contributed under the Maryland College Investment Plan or the Maryland Broker-Dealer College Investment Plan.

If you have contributed more than $2,500 during the taxable year, the excess may be carried over to succeeding tax years until the full amount is used as a subtraction.

For more information, see Administrative Release 32 - Maryland Prepaid College Trust and Maryland College Investment Plan Tax Benefits and College Savings Plans of Maryland.