I sent the following email to info@marylandcollegeinvestmentplan.org this morning. I have several of the Maryland College Investment Plan accounts. According to information on your website ...

"The legislation provides a Maryland tax incentive for contributions to the Plan. Tax-General Article, §10-208(o)(3) provides a subtraction in the calculation of Maryland adjusted gross income for the amount contributed to the account during the taxable year. However, the legislation limits the subtraction to $2,500 "for each investment account."

Where on the tax forms is this subtraction in the calculation of Maryland AGI actually performed?

To which they responded ...

In order to claim the state tax deduction offered by the plan, please fill out Maryland Tax Return Form 502. The deduction should be entered on Line 14 of the form for "Other Subtractions." We would like you to know that this form can be downloaded online at http://forms.marylandtaxes.com/current_forms/502.pdf.

-- Anonymous, April 07, 2003

Answers

In reading the instructions and looking at for 502, it looks like line 14 refers to instruction 13. Code Letters for Instruction 13. Letter "X": Up to $2,500 per taxpayer per beneficiary contributed for the purchase of each prepaid tuition contract made under the Maryland Prepaid College Trust or contribution under the Maryland College Investment Plan. For more information, see Administrative Release No. 32.

-- Anonymous, April 07, 2003