Maine Will Not Tax Stimulus Checks

[MaineDem]

AUGUSTA - Governor John E. Baldacci said today that Maine will not tax federal rebates that were passed by Congress and signed by the President in an attempt to stimulate the slowing national economy.

"Maine will not tax the stimulus checks. There's no provision in State law to do so and I will aggressively oppose any effort to the contrary," Governor Baldacci said in reaction to legislation introduced by Republican Rep. Scott Lansley of Sabattus.

Rep. Lansley has submitted unnecessary legislation that exempts the rebates from Maine taxation, which is already prohibited.

According to the Maine Revenue Service, the federal law that established the rebates says that the money cannot be included as part of federal adjusted gross income. Maine's income taxes start with AGI.

"This legislation has the potential to cause a lot of confusion and worry people unnecessarily. I can assure you, Maine will not tax the rebate checks," Governor Baldacci said.

[mainegreen]

1. Aren't they tax rebates?

How could you tax it? It's a forward on your estimated tax returns, hence really represents income already taxed by the state.

Wouldn't that be like the state taxing expense reimbursements?

[MountainLaurel]

3. In the past

These rebates were taxed as if they were income. In GD there are some threads about this right now.

[mainegreen]

4. Interesting.

Tons of information on the IRS site.

I guess it really *is* free money, not even a tax rebate.

http://www.irs.gov/newsroom/article/0,,id=179181,00.html

Wow.
That's all going to the house downpayment!

[fight4my3sons]

2. thanks for posting this

my husband swears that we are going to get taxed for the check, now I can show him this