Maryland Disability Employment Tax Credit
The Maryland Disability Employment Tax Credit is designed to encourage businesses to hire individuals with disabilities. This credit is available to employers who employ persons with disabilities certified by the State Department of Education or veterans with disabilities certified by the Maryland Department of Labor.
Eligibility Criteria
- Employer must hire individuals with disabilities certified by the State Department of Education.
- Employer must hire veterans with disabilities certified by the Maryland Department of Labor.
- Credit is based on wages paid, child care, and transportation expenses paid on behalf of these employees.
How to Claim the Credit
To claim the Maryland Disability Employment Tax Credit, businesses must complete Form 502CR, which is attached to the Maryland individual income tax return (Form 502). The credit amount is calculated based on eligible expenses and must be reported on the appropriate line of Form 502CR.
Important: A copy of the required certification from the Maryland Department of Health must be included with Form 502CR when claiming this credit.
Reporting Requirements
- Enter the total credit amount on Line 14 of Form 502CR.
- Transfer the total from Line 14 to Line 24 of Form 502 (or corresponding line on other Maryland forms).
- Ensure all required certifications are attached to avoid processing delays.
Source:
Form 502CR - Maryland Income Tax Credits for Individuals
Form 502 - Maryland Individual Income Tax Return
Maryland State Instruction Page
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.