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Additional tax information 

Academic or Professional Leave With Benefits

MCPS contributions to the state and/or MCPS retirement pension systems are considered fringe benefit compensation and are reflected in Boxes 1, 3, 5, and 16.


The FICA tax is divided into Social Security (OASDI) and Medicare. The 2023 Social Security tax is 6.2 percent on a maximum salary of $160,200 (maximum deduction of $9,932.40). The Medicare tax is 1.45 percent on all taxable wages (no maximum).

Under the 2010 Patient Protection and Affordable Care Act, which began in 2013, the employer must withhold the additional 0.9 percent Medicare tax in the pay period in which the employee's calendar year wages subject to Medicare tax exceed $200,000, regardless of the employee's filing status or other income.

Salary Overpayments

Employees who made salary overpayment reimbursement to MCPS may qualify for an adjustment to their income tax returns. Publication 525 from the IRS provides information regarding these repaid amounts.

Independent Activity Fund (IAF)

IAF wages in excess of $15/day that are reported to Financial Services (Form 280-46) or reported payroll are included on the W-2 form in Boxes 1, 3, 5, and 16.

Medical Expense Contributions

Calendar year 2023 health insurance and medical reimbursement program payroll deductions have been subtracted from federal, state, Social Security (OASDI), and Medicare wages and therefore cannot be taken as itemized deductions on your income tax return.

FICA Exempt Sick Leave

Sick leave pay is exempt from Social Security (OASDI) taxes and Medicare taxes only if sick leave is paid continuously for six months or more. A return to work for one day voids the exemption and requires a new six-month continuous waiting period. If you believe you qualify for an exemption, please make a request in writing to ERSC. Refunds take from 6 to 12 months.

Earned Income Credit

You may be eligible to claim an earned income tax credit on your 2022 federal and state tax returns if both your federal adjusted gross income and your earned income are less than—

  • $56,838 ($63,398 married filing jointly) with three or more qualifying children
  • $52,918 ($59,478 married filing jointly) with two qualifying children
  • $46,560 ($53,120 married filing jointly) with one qualifying child
  • $17,640 ($24,210 married filing jointly) with no qualifying children

Read this important notice to Maryland employees. Also see Publication 596: Earned Income Credit from the Internal Revenue Service.