In order to lower their property taxes, Maine provides a homestead exemption to qualified homeowners. The homestead exemption is a type of property tax credit that lowers a property’s taxable value by a specific percentage. The exemption’s dollar value varies according to the municipality where the property is situated. The owner of the property must fulfill specific eligibility standards in order to be eligible for the homestead exemption in Maine.
The owner of the property must use it as their principal residence in order to qualify for the homestead exemption in Maine. Before requesting the exemption, the property owner had to have owned it for at least a year. The owner of the property must be a permanent resident of Maine, and the property must be assessed at $20,000 or more.
Additionally, the property must not be subject to a debt or mortgage that exceeds the assessed value of the property and the owner must be current on their property taxes. The local tax assessor’s office can be contacted to submit an application for the homestead exemption if the property owner satisfies the eligibility standards.
When goods are bought outside of Maine and transported there for use, storage, or consumption, Maine levies a use tax on them. If you buy something outside of Maine and the state’s sales tax rate is lower than Maine’s, you might have to pay the difference in Maine use tax. You will owe Maine use tax based on the Maine sales tax rate, for instance, if you buy something in New Hampshire with 0% sales tax and bring it to Maine.
For single filers and married couples filing jointly, the standard deduction for federal income taxes in 2021 is $12,550 and $25,100, respectively. You typically won’t owe federal income tax if your income is below the standard deduction. You might still owe additional taxes nevertheless, such self-employment taxes or state income taxes.
You might not be required to submit a federal income tax return if your income is less than $5,000. However, you might want to file a tax return to request a refund if federal taxes were deducted from your income or if you are eligible for specific refundable tax credits, such the Earned Income Tax Credit.
You must typically submit a federal income tax return in 2021 if your income exceeds the aforementioned thresholds:
However, a number of variables, including your age, filing status, and source of income, might influence your filing obligations. To ascertain whether you must file a tax return, it is usually better to speak with a tax expert or use tax preparation software.