Many individuals and families are experiencing financial hardship as a result of the COVID-19 outbreak. The American government has given qualified citizens stimulus payments to help ease some of the financial stress. You’ve arrived to the right place if you reside in Maine and are wondering how to obtain a stimulus check. However, let’s first address some associated tax queries before moving on. What Services in Maine Are Taxable?
Many products and services, including prepared meals, housing, and some personal services, are subject to a 5.5% sales tax in Maine. On taxable items used, stored, or eaten in Maine but not subject to sales tax, the state also levies a use tax. It is significant to remember that some products and services, including as medical devices, prescription medications, and specific categories of clothes, are free from sales tax. Do I Need to File Taxes if I Only Made $5,000?
If you live in Maine and earn less than $5,000, you are exempt from filing a state income tax return. To get a refund, though, if taxes were deducted from your pay, you must file a return. How much money can you make in 2021 before you have to pay taxes?
The standard deduction is $12,550 for single filers and $25,100 for married couples filing jointly for tax year 2021. This indicates that you are exempt from paying federal income tax on income up to these limits. However, if your income exceeds the standard deduction, you will have to pay taxes on the excess.
If your income is at least $12,550 and you are a single filer under the age of 65, you must file a federal tax return. The barrier rises to $14,250 if you are over 65. If one spouse is over 65, the barrier for married couples filing jointly is $27,400. If both spouses are under 65, the threshold is $25,100.
You must have a Social Security number, be a citizen or resident alien of the United States, and not be claimed as a dependent on anyone else’s tax return in order to qualify for a stimulus check. Individuals making up to $75,000 and couples making up to $150,000 will each receive the entire $1,400 stimulus check, depending on their income. When an individual or couple earns between $75,000 and $80,000 or between $150,000 and $160,000, the amount is reduced, and when they both make over $80,000 or over $160,000, it completely disappears.
The stimulus payment will be put straight into your bank account if you submitted a tax return in 2019 or 2020 and provided information for direct deposit. The IRS will mail you a paper check or prepaid debit card in the event that you failed to file a tax return or give information for direct deposit.
In conclusion, assuming you match the conditions, obtaining a stimulus check in Maine is rather simple. If you haven’t already, be sure to file your taxes, and be on the lookout for any correspondence from the IRS regarding your stimulus payout. And if you have any additional inquiries concerning taxes in Maine, speak with a tax expert or check out the website for the Maine Revenue Services.