We would like to help spread the word about the Maine Educational Opportunity Tax Credit! This is a credit against Maine income taxes for people who took out loans to attend college in Maine and then go on to work in Maine. There are credits available for both an associate’s and bachelor’s degrees, and “extra credit” for those whose degrees are in the “STEM” fields; science, technology, engineering and math.
The credit works by using your monthly loan payment to calculate your credit, which reduces your Maine income tax. For degrees in the STEM fields, your credit may be refundable, which means if the credit is larger than that tax you owe, you would get a check from the state. For other fields, any unused credits can be carried forward for ten years against Maine income taxes in future years.
Your credit is for course work after January 2008, and you must do this course work at a Maine college. According the “Opportunity Maine” website, the average Educational Opportunity tax credit for fully eligible students will be $2100 each year, but for those students with higher college debt, the credit can be worth up to $5900 a year.
If your employer pays your student loans, then your employer is eligible for the credit!
For more information about the credit, eligible loans payments and your eligibility for the credit, click here for information from Maine Revenue Services, and here for information and FAQs from OpportunityMaine.org.
Be sure to tell your tax preparer that you have student loans from a Maine school.