Maine has started giving qualified taxpayers $850 stimulus grants to aid citizens in coping with high inflation costs.
More stimulus checks are on their way after being mailed to more than half of the individuals who qualify as of June 24.
“The stimulus checks will be a big help for low-income households struggling to cover higher costs,” says Sarah Austin, director of policy and research at the Maine Center for Economic Policy. “Housing, food, and energy costs have increased” (MECEP).
Maine offers its inhabitants the greatest payment even though nine other states have passed stimulus relief legislation.
This emergency legislation, which is expected to affect 858,000 citizens of Maine, is included with a few other financial relief measures in the state’s supplemental budget for the fiscal year 2022-2023.
The Maine Direct Relief Payment is what?
Direct payments of $850 to individuals and $1,700 to joint filers are available under Maine’s relief package.
According to the governor’s office, these payments are intended to assist residents in paying for essentials like groceries, gas, and utilities; however, residents are free to utilise the money any way they see fit.
According to the governor’s announcement, the following conditions must be met by residents of Maine to be eligible for the relief payment:
By October 31, 2022, submit your Maine individual income tax return if you are a full-time resident.
Not eligible for a dependant exemption on the tax return of another resident
Be single, married, and filing separately with a federal adjusted gross income (FAGI) less than $100,000; $150,000; or filing as the head of household
For couples filing jointly, $200,000
Payments Will Be Made When and How?
On June 1, 2022, the Maine Department of Administrative and Financial Services (DAFS) started sending the first batch of payments via the USPS (USPS).
5,000 checks would be included in this initial delivery, according to Governor Mills, and up to 200,000 might be sent each week after that.
The DAFS confirmed that payments are being made on schedule in a statement given to Forbes Advisor.
As of June 24, 2022, 453,805 relief checks have been sent out, and another 97,663 were in the line to be printed and/or distributed, according to the organisation.
However, some delays were anticipated. Distribution was briefly endangered by an envelope shortage, but it appears that the problem has been remedied.
According to the DAFS, most taxpayers who filed state taxes for 2021 will receive their payments by the end of July.
Additional checks will be issued as tax returns are processed up until the end of the year. Residents can verify the status of their Maine stimulus check by visiting Maine.gov and entering basic information, including their Social Security number.
What if Your Payment Hasn’t Arrived?
Your check might be on the way because Maine is currently issuing payments. The following actions may be necessary for residents who haven’t received their payment and can’t monitor the status of their checks.
There is still time to file your state income taxes for 2021.
Anyone who has not submitted their 2021 state income tax return will not be eligible for stimulus payments.
Maine residents can still file their taxes through October 31, 2022, even though the 2021 tax filing deadline has passed, to obtain a direct payment.
For those who don’t typically file, such as those who receive Social Security or SSI, the deadline to file a Form 1040ME and complete the necessary parts of Schedule PTFC/STFC is October 31.
Because they are less likely to submit tax returns, lower-income families frequently miss out on stimulus funds, child tax credits, and other tax incentives, according to Austin of the Maine Center for Economic Policy.
According to her, “the state has taken some steps to address this, including financing for a free tax preparation website.” You can get free tax preparation assistance by visiting cashmaine.org, calling 2-1-1, or visiting 211maine.org.
The DAFS also cautions that this may be a chance for you to apply for other state tax incentives for which you are qualified.
To claim the $850, a Mainer who generally does not submit federal returns can use the same procedure to claim the property tax and sales tax fairness credits without having to do so.
Update Your Address Payment will be sent to the address listed on your Maine individual income tax return for the year 2021, and it will be sent to any forwarding addresses listed with the USPS.
You must provide written documentation of your new address as well as other identifying information, such as your SSN, if you need to amend your address on file with the Maine Revenue Services (MRS). On Maine.gov, you can find instructions.
Call Maine Revenue Services at (207) 624-9924 if you think your stimulus check has been misplaced or stolen.
Fraudulent Stimulus Checks
Scams involving federal stimulus checks were common during the pandemic, and some citizens of Maine are currently the target of similar schemes.
The attorney general’s office and Maine Revenue Services published a statement in May alerting the public that con artists had been requesting Social Security numbers and other sensitive information by posing as “Maine IRS” officers.
Consumers should be aware that the IRS is a separate organisation from the Maine Revenue Service (MRS), which is sending the Maine stimulus funds.
Since it is a federal organisation, the IRS won’t get in touch with taxpayers regarding their state stimulus funds.
The IRS also warns that communication problems, like as misspellings and bad language, are classic red flags for fraud and that it will never “initiate contact with taxpayers by email, text, or social media to obtain personal or financial information.”
Attorney General Aaron Frey of Maine issued a warning to customers in May about these scams. Without first independently verifying their identification, he advised, “do not disclose any identifying information with anyone asking such information over the phone.”
Are Residents of Maine Going to Get Any More Assistance?
Maine households may be pondering whether state-sponsored payments will turn into a recurrent benefit after receiving $285 from the state’s Disaster Relief Program last year.
Austin claims that Mainers shouldn’t anticipate another payout on the same scale. While the stimulus check was designed with the economy in mind, it also serves another useful function. Like almost every other state, Maine has budget regulations that demand that our budgets be balanced, according to her.
The new stimulus plan will get more than half of the state’s budget excess.
Other substantial one-time efforts are also included in the new supplemental budget. Highlights of the budget include:
a tax relief, including a gradual increase in the annual deduction from the present cap of $10,000 to $35,000 in 2024, for people who receive a Maine retirement pension.
An increase in Maine’s Property Tax Fairness Credit will pay homeowners and senior homeowners up to $1,500 annually in refundable tax credits.
For students affected by the epidemic, two years of community college are free.
Benefits from refundable tax credits for student loan debt relief of up to $2,500 per year or $25,000 throughout one’s lifetime
Austin claims that Maine permanently increased its earned income tax credit by double (EITC).
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According to her, “[this] will help roughly 100,000 homes in the state and have an average benefit for families of about $400 a year.”
As long as they file state income taxes, low-income households should be able to anticipate receiving this benefit in the future.
