Qualification for the Credit

For tax year 2003, Maryland's basic earned income credit is allowed if your earned and adjusted gross income is:

• less than $30,350 and you maintained a home for a child for at least six months of the year,
• less than $35,458 with two or more children, and
• less than $11,500 with no children (must be between 25 and 64 years old).

You can use the worksheet in Instruction 18 of the Maryland tax booklet to calculate the basic state earned income credit.

Even if you are not required to file a Maryland tax return, you may still qualify for the earned income credit. If one-half of your Federal earned income credit is greater than your Maryland tax and you have one or more dependents you could claim as exemptions on your Federal return, you may be eligible for a cash benefit from the state. Complete the worksheet provided in Instruction 18 of the Maryland tax booklet. Enter the result on line 42 of Form 502 or line 17 of Form 503.