Maryland Taxpayers Could Be Missing Out on Thousands in Tax Credits and Deductions

A Guide to Claiming the EITC, New Deductions for Seniors, Tipped Workers, and Overtime Pay

Mar. 12, 2026 at 11:24pm

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As Tax Day approaches, many Maryland residents may be unknowingly leaving money on the table when it comes to tax credits and deductions. Recent data suggests around 72,000 tax filers in Maryland were potentially eligible for the Earned Income Tax Credit (EITC) in Tax Year 2024 but didn't claim it. Beyond the EITC, new deductions for seniors, tipped workers, and overtime pay are now available, adding to the potential savings for Marylanders.

Why it matters

Maximizing tax credits and deductions can make a significant difference in the amount of money Marylanders receive back from the government. The EITC, in particular, is a valuable refundable credit that can provide low-to-moderate income workers with a substantial boost, but many eligible individuals fail to claim it. Understanding the available tax benefits can help ensure Maryland residents don't miss out on potential savings.

The details

The Earned Income Tax Credit is a refundable tax credit designed to benefit low-to-moderate income workers. Eligibility is based on factors like income, filing status, the number of qualifying children, and investment income. The maximum credit can reach upwards of $8,000 for those with three or more dependents. However, the IRS estimates that only 4 out of 5 eligible individuals actually claim the EITC. New tax deductions for 2026 include a $6,000 bonus deduction for filers aged 65 and older, a deduction for tip income up to $25,000, and a deduction for overtime pay up to $12,500. Additionally, the Child Tax Credit remains a valuable benefit for parents with qualifying children under 17, offering up to $2,200 per child.

  • Tax Day is April 15th, 2026.
  • The deadline to apply for the Homeowners Property Tax Credit is April 15th, 2026 to have the credit applied to your July tax bill. The final deadline is October 1st, 2026.
  • Parents of children born between 2025 and 2028 may be eligible to open 'Trump Accounts' and receive a one-time $1,000 contribution from the federal government when filing their taxes or through the IRS program website.

The players

Maryland Comptroller

The state agency responsible for administering and enforcing Maryland's tax laws, including providing information and resources on available tax credits and deductions.

Internal Revenue Service (IRS)

The federal agency responsible for administering and enforcing federal tax laws, including the Earned Income Tax Credit and the IRS Free File program for free tax preparation assistance.

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What’s next

Taxpayers should visit the Maryland Comptroller's website to learn more about the EITC and other available tax credits and deductions. They should also explore free tax preparation resources, such as the IRS Free File program and local nonprofit organizations, to ensure they are maximizing their potential savings.

The takeaway

By understanding the various tax credits and deductions available, Maryland residents can ensure they are not leaving money on the table and are taking full advantage of the tax benefits they are eligible for. This can make a significant difference in the amount of money they receive back from the government, especially for low-to-moderate income individuals and families.