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New Member
posted Apr 15, 2021 3:22:48 PM

Am I eligible to claim exemption from both Maine and Federal income tax.

I already filled my taxes and unemployment took out a lot of my income tax.

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2 Replies
Level 15
Apr 15, 2021 3:31:42 PM

Exempt means you are not required to have taxes withheld. See:

Can I Claim Exemption From Withholding on Form W-4? | Internal Revenue Service (irs.gov)

20_Form W-4ME.indd (maine.gov)

If you claim exempt but then end up owing taxes, the penalties are high.

Level 15
Apr 15, 2021 3:33:43 PM

Sometime in MAY the IRS will re compute your federal return for the exclusion of the unemployment if you are eligible and send you the applicable refund ... do NOT amend the return.   

 

 

As for Maine ... latest news ...   https://support.taxslayerpro.com/hc/en-us/articles/1500004451042-State-Conformity-to-the-2020-Federal-Unemployment-Compensation-Exclusion

 

3/29/21 - Concerning the federal tax law changes, Maine will conform to the federal tax law changes.  Currently, discussions are being held as to how this will be handled on the return.  I cannot give a definite answer on what the changes will be at this time.  Once a decision has been made a tax alert will be sent out.  If the change will require updates to our forms, an email will be sent to vendors for guidance.