While I haven't received any news about the money coming into my account, a slice of cake is already in front of my fork. I put my fork down for a moment while browsing the Maryland 529 site.

I saw a statement that if you deposit $25, the state government will add $500. At first, I thought it was just an advertising slogan.

The program is called Save4College, a state-supported initiative operated by Maryland 529 under the Maryland Department of Treasury. Applications for 2027 will open on January 1.

It's commonly referred to as matching, but strictly speaking, it's not a system where they match what you deposit. As long as you meet the minimum contribution amount for your income bracket, a fixed amount will be added.

And it's not a program that ends in January. The official application deadline listed on the website is May 31 at 11:59 PM.

So why prepare starting in January? Because the grants are distributed in the order that properly completed applications are received, and the budget is limited each fiscal year.

The official page also states that state grants are not guaranteed. If the budget runs short, those who have never received it before will be prioritized.

Now, you might be wondering how much you need to deposit to receive how much. I'll directly quote the criteria currently listed on the official page.

If your income is $74,999 or less for married couples, or $49,999 or less for individuals, you can deposit just $25 and receive $500. That's what made me put my fork down.

For married couples earning between $75,000 and $124,999, or individuals earning between $50,000 and $87,499, you can deposit $100 and still receive $500.

For married couples earning between $125,000 and $175,000, or individuals earning between $87,500 and $112,500, you need to deposit $250 to receive $250. This is where it starts to look like real matching.

The income criteria are based on the Maryland adjusted gross income from the previous tax year, and the reported income will be verified by the state auditor's office. Be sure to check which year's filings will be considered for the January application.

You can't assume that the criteria for 2027 will be the same as what's shown in the current table. The state legislature can change it, and if it does, they will announce it on the site, so it's best to check again in January.

There are also parts of the eligibility that can be tricky. The account must be a Maryland College Investment Plan account opened after December 31, 2016.

If you only have older accounts or only have the Prepaid College Trust, those accounts are not eligible for this program. You need to open a new one and apply.

The account owner must be a Maryland resident aged 18 or older, and the beneficiary must also be a Maryland resident. The beneficiary must be 25 years old or younger as of the application date.

A single beneficiary can receive grants up to two times in a year. Each combination of account owner and beneficiary can apply only once.

Each account owner can receive a total of up to $9,000 over their lifetime. At $500 each time, that's 18 times, so it's not a number to worry about right now.

Submitting the application isn't the end. Those who file Maryland taxes must complete their filings by July 15, and this date remains the same even if you receive an extension.

The minimum contribution deadline is November 1 at 11:59 PM. This year's deadline has already passed a few days ago, so I recommend marking it on your calendar for next year.

There's one more thing to consider. In the year you receive this grant, you won't be able to claim a Maryland income tax deduction for contributions to the College Investment Plan.

The deduction limit is $2,500 per beneficiary per year according to the official page. Any contributions exceeding the limit can be carried forward for up to 10 years.

You may have seen discussions about a bill to raise the limit to $4,850 by 2025, but the congressional records I found were stuck at the Senate committee hearing stage. Since I couldn't confirm its passage, I will consider it as $2,500.

The math is simple. Assuming a total tax rate of 8%, the tax savings from a $2,500 deduction would be $200, so in this case, the $500 grant is better.

However, if you're in the $250 bracket or if your household contributes large amounts each year, the answer may differ. If you get tangled up with carryover amounts, it's safe to ask a tax professional.

This is what I would do. I would check in November and December to see if my account was opened after 2017, and if not, I would open one.

I would submit the application in the first week of January. Finish filing my Maryland taxes before summer, and don't wait until fall to make the minimum contribution right away.

If you weren't eligible for the grant this year, if you contribute by December 31, you can claim the deduction for 2026. Missing this at year-end would be a real loss.

If you need to change your account number or beneficiary, the application won't automatically follow, so call 1-888-463-4723 to confirm.

$25 doesn't even cover the cost of a decent cake these days. If that money can turn into $500, it's worth marking January 1 on your calendar. The money hasn't arrived yet, but the cake is here, and the application date is coming soon.