$850 Economic Relief Checks IRS Proposes To Benefit Maine Residents

People in Maine are struggling with rising costs brought on by pandemic-driven inflation, including higher energy prices and higher prices for basic goods.

The Internal Revenue Service is investigating whether the $850 economic assistance checks that were given out in Maine last year are subject to federal taxation.

In order to lessen the strain brought on by supply-chain issues, inflation, and other economic hardships, nearly two dozen states, including Maine, sent checks to their citizens last year, according to the Portland Press Herald.

While the Governor has no control over how COVID-19 will affect international markets, she can ensure that Maine residents have access to the resources they need to cope with these increased costs. Governor Mills suggested that as a solution, $850 direct checks representing more than half of the budget surplus be distributed to Maine taxpayers. Following the Legislature’s approval of the Governor’s proposal, $850 direct checks will be issued to approximately 858,000 Mainers, representing a $729.3 million return to taxpayers.

The IRS advises taxpayers to hold off until more clarification is available if they are unsure whether their state payments are taxable.

The agency advises against amending returns that have already been filed. The agency stated that more details could be made available as early as this week.