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When I report my income in a Maryland Health Connection application, what are the limits on the deductions I may claim?

Deduction Type Limit
Alimony paid Amount deducted should not exceed total income
Certain business expenses of reservists, performing artists, and fee-basis government officials Amount deducted should not exceed total income
Deductable part of self-employment tax Amount deducted should not exceed 7.65% of annual income
Domestic Production activities deduction Amount deducted should not exceed 9% of annual income
Student loan interest paid Generally, the amount an applicant may deduct is the lesser of $2,500 or the amount of interest the applicant actually paid.
Health savings account deduction
  • $3,350 if a single-person household
  • $6,650 for family coverage
Moving expenses if the applicant is moving to live much closer to their job Amount deducted should not exceed total income
Penalty on early withdrawal of savings Amount deducted should not exceed total income
Contributions to an individual retirement account if the applicant doesn’t have a retirement account through a job
Self-employed health insurance deduction Amount deducted should not exceed total income
Tuition costs for school if the applicant pays for the costs out-of-pocket and deducts them on their tax return on line 34 Amount deducted should not exceed total income