Bill > HB33

This bill, concerning income tax itemized deductions for charitable donations in Maryland, proposes to modify how individuals can claim deductions on their state income tax returns. Specifically, it clarifies that only those who itemize deductions on their federal income tax return can do so on their Maryland return. The bill outlines that Maryland itemized deductions are generally based on federal itemized deductions, but with certain reductions. These reductions include amounts deducted for conservation easements if a credit is claimed for them, and taxes paid to other states. Crucially, the bill amends the definition of "itemized deduction" to exclude the deduction for charitable contributions allowed under Section 170 of the Internal Revenue Code, meaning charitable donations will no longer be considered an itemized deduction for Maryland income tax purposes under this new provision. The bill also introduces a limitation on other itemized deductions for individuals whose federal adjusted gross income exceeds a certain "applicable amount" ($100,000 for married individuals filing separately and $200,000 for others), reducing their itemized deductions by 7.5% of the income exceeding this threshold. This change is set to take effect for taxable years beginning after December 31, 2025.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0033?ys=2026RS