Eligibility For Income Tax Credit Expands In Montgomery County

MONTGOMERY COUNTY, MD — The Montgomery County Council voted unanimously to amend the county's tax code, allowing residents eligible for federal or state income credit to receive the county's matching tax credit.

Residents previously had to be eligible for both state and federal income credit in order to receive the county's Working Families Income Supplement. The council's move will allow noncitizens who do not have a Social Security number — which is required to receive a federal income credit — to receive the county's supplement. The bill is in place for taxes from 2019 until Jan. 1, 2023.

Councilor Gabriel Albornoz said the bill was crucial for helping all families recover from the pandemic, as many have struggled financially over the past 15 months. He said it was crucial that the county do this, not just from a moral or economic standpoint, but also from a public health one.

"Every county resident — not just based on their Social Security number — every county resident will have access to this," Albornoz said at the council meeting Tuesday. "As we know, the virus doesn't care if you're a legal permanent resident here or not."

The county estimates that 16,626 residents would have been eligible for the Working Families Income Supplement if these conditions were in place in tax year 2019. The Working Families Income Supplement is a match of the state tax credit. The Bill report says the average supplement is $907, and when residents who don't have social security numbers are able to receive it, the county will dole out $15,079,782 to those households each year.

The state tax credit is determined based on income and if the filer has any dependents — people making under $57,000 may be eligible to receive the state tax credit and the match from Montgomery County.

Montgomery County is the only county in the state that matches 100 percent of the state's tax credit, council members said at the vote Tuesday.

"It's because we know and understand that our county residents need this help," said Albornoz. "They need it for economic reasons, they need it for social reasons, and we as a council continue to believe it's our moral our responsibility to help ensure that every member of the community receive the help and the support that they need to be successful, and to thrive, and to continue to move their families forward."