The Maine Legislature has approved the supplemental budget and it was signed into law by Governor Mills on Wednesday, April 20. Here are the important details:
Inflation Relief Checks
Relief checks of $850 will be mailed to most Maine residents, starting in June. To be eligible, you must be a full-time resident and file a 2021 Maine income tax return by October 31, 2022. Seniors receiving social security who do not typically file tax returns will have to file to receive a payment. Get your questions answered here.
Tax Breaks for Maine Retirees
Exempts additional Maine retirement pension from income tax, improving the deductions for residents from $10,000 to $25,000 in tax year 2022, to $30,000 in tax year 2023 and to $35,000 in tax years 2024 and beyond. Retirement pension income from any source will be tax exempt in Maine up to $35,000 per individual by tax year 2025, providing an annual average tax cut of approximately $795.
Property Tax Fairness Credit
The Property Tax Fairness Credit has been expanded to give low and middle-income households relief on property tax or rent. The refundable tax credit will be up to $1,000 each year and $1,500 maximum for seniors.
Earned Income Tax Credit (EITC)
The EITC, available to families making less than $57,414, has been increased. The benefit per family will be average of $764 per year.
To receive help with filing a 2021 Maine tax return to receive your inflation relief check please visit the CA$H Maine website after May 1st.