IRS ruling on State Stimulus Payments
The IRS determined state stimulus payments are not subject to federal taxes, including the $850 and $450 relief checks in 17 states such as Maine, Indiana, and New Jersey.
Non-Taxable States for Stimulus Checks
Residents in states like California, Colorado, Connecticut, and others do not need to pay income tax on state stimulus payments according to IRS guidelines.
Maine Stimulus Payment Updates
Maine residents do not need to report $850 stimulus checks on their 2022 tax returns. The IRS clarified that payments for general welfare or disaster relief are exempt from federal taxes.
Additional Information
Taxpayers in several states do not have to report state stimulus payments on their tax returns. The IRS also advised consulting IRS Publication 525 for information on taxable and nontaxable income.
Maine Tax Information
Maine residents can e-file their tax returns and check their stimulus payment status on Maine.gov. The state’s tax brackets and deductions are designed to accommodate various income levels.