Session 128th Maine Legislature allows the eligible students are qualified for the Maine student loan tax credit. Previous Educational Opportunity Tax Credit is now replaced with the Student Loan Repayment Credit for Maine Residents. Great relief to the students. This is the all new simplified student loan tax credit system for student loan repayment. Check out the tax credit amount specified, eligibility and procedure to claim for the loan amount you repaid.
Maine Student Loan tax credit – Are you eligible?
For the tax years starting from January 1, 2017, a Maine resident individual can claim a tax credit for the student loan repayments. Who are eligible for study loan tax credit? You may wonder with a question am I qualified to avail this facility to earn the tax credit. Also amount of tax credit varies with certain conditions. Education loan payment is the amount a student pays to the lender during a taxable year 2018, 2019.
Eligibility to claim tax credit
- Tax credit amount is available to While studying you work for part-time of at least 16 hours but less than 32 hours in a taxable year.
- You must attend and obtain an Associate degree or a bachelor’s degree or a graduate degree after 2007. I addition a college can be a Maine accredited college or a non-Main community college or a university.
- Loan can be a refinanced loan or a consolidated loan.
- Personal loan is not qualified to avail the benefit.
- Employer also can get tax credit for qualified employees and the amount equates the amount of loan repaid in the taxable year.
Tax Calculator – credit amount
Calculation has few criteria like: Tax credit amount will not reduce the tax due to less than zero. Maximum credit is up to $1000 for an individual with Associate degree. For individual with bachelor degree, the amount can go up to $2000. If a student obtains graduate degree then he/she can get tax credit amount up to $3000. More details check Maine government website. Feel free to check the income tax rates information from our database.