Qualification for the Credit

For tax year 2011, Maryland's basic earned income credit is allowed if your earned and adjusted gross income is:

• You have three or more qualifying children and you earn less than $43,998 ($49,078 if married filing jointly).
• You have two qualifying children and you earn less than $40,964 ($46,044 if married filing jointly).
• You have one qualifying child and you earn less than $36,052 ($41,132 if married filing jointly).
• You do not have a qualifying child and you earn less than $13,660 ($18,740 if married filing jointly).

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 41 of Form 502 or line 18 of Form 503.