Tax Relief for Hurricane Lee Affected Areas
The IRS announced tax relief for individuals and businesses affected by Hurricane Lee in Maine and Massachusetts. These taxpayers have until Feb. 15, 2024, to file various federal tax returns and make payments. All counties in Maine and Massachusetts qualify for this relief.
Maine Use Tax Information
If you purchased items for use in Maine but did not pay sales tax, you must pay Maine Use Tax. The Maine consumer use tax rate is 5.5%. If unsure of the amount owed, multiply “Maine Adjusted Gross Income” by 0.04%. The use tax rate for rental of living quarters is 9%.
Tax Payment Options and Retirement Income
You can wait and pay everything at tax time. Or deposit the liability monthly as a “tax payment” to yourself. Retirement income like 401(k), IRA or pensions is taxed in Maine up to 7.15%. A small deduction is available.
Maine Residency Proof and Working in New Hampshire
To prove Maine residency, provide an electric, water/sewer, cell phone bill. Or Maine fishing/hunting license. If you live in Maine and work in New Hampshire, you don’t have to file a New Hampshire return as it has no income tax.