Is Maine Sending Out Stimulus Checks?

Maine will stop issuing stimulus checks on its own as of April 2021. Maine citizens who qualify for federal stimulus cheques, however, ought to have received them from the federal government. The federal government’s response to the COVID-19 pandemic’s economic impact includes these stimulus payments, commonly known as Economic Impact Payments. These checks are subject to a number of conditions, including income and tax filing status.

The federal government was granted the right to enact an income tax by the 16th Amendment to the United States Constitution, which was ratified in 1913. With the passage of this amendment, Congress gained the authority to tax money from any source without dividing it up among the states. The federal government mostly relied on tariffs and excise taxes to raise money until the 16th Amendment was ratified.

One of several states without a state income tax is Maine. Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming are other states without an income tax. To raise money, some of these states may still impose additional taxes, including sales taxes or property taxes. Non-residents who earn money in Maine could have to pay Maine income tax on it. The inhabitants of those states are, however, free from Maine income tax on salaries earned in Maine thanks to a tax treaty that Maine has with a few other states. The states of Connecticut, Massachusetts, New Hampshire, and Vermont have tax treaties with Maine.

Benefits from Social Security are tax-free in Maine. However, some retirement income sources, such pensions and annuities, might be taxed in Maine. Retirement income tax obligations will vary depending on a number of variables, such as the amount of income received and the taxpayer’s filing status.

In conclusion, Maine is not dispersing stimulus money on its own, but citizens who qualified for federal stimulus checks ought to have done so. Despite being one of the states without an income tax, Maine may nonetheless impose taxes on non-residents who generate income there. Social Security benefits are not taxable in Maine, but other forms of retirement income can be.