State of Maine $285 stimulus reporting

[LoneWlf]

Does anybody know the proper way to report the 2021 State of Maine bonus stimulus payment for essential workers during the pandemic?

[MaryK4 · Accepted solution]

You must include the payment in gross income as compensation for services. Regardless of whether an amount is paid to you by your state/local government, or by your employer, a payment that is in the nature of compensation for services is not excludable as a qualified disaster relief payment.  To the extent the Disaster Relief Payment is taxable by the Internal Revenue Service and included in your 2021 federal adjusted gross income, you will be able to subtract the amount on your 2021 Maine individual income tax return.

In Turbo Tax:

1. With your return open, go to Federal (or Federal Taxes) > Wages & Income (or Personal if using Self-Employed or Home & Business).
2. Open the Less Common Income section and start or revisit the last entry, Miscellaneous Income, 1099-A, 1099-C.
3. On the next screen, start/revisit the very last entry, Other Reportable Income, and answer Yes on the following screen.
4. On the next screen, enter a description (for example, "Maine Essential Worker Payment") and then enter the total USD amount.
5. Select Continue when finished.

[andyb12]

I entered the Maine relief check into turbo tax as 

MaryK1101 said to enter it in and my Maine tax due went up. Is there a way to fix this, as the relief check is only suppose to be taxed by the feds?

[DianeW777]

As indicated in your other post by @SundayInSalem, this is not taxable to Maine (ME).  Here is a link to the page ME has set up for this payment.

• Maine Disaster Relief Payment FAQ
  • Answer 9: Generally, disaster-related payments are not subject to Maine individual income tax, though exceptions do apply. The payment may be subject to federal income tax. To the extent the Disaster Relief Payment is taxable by the Internal Revenue Service and included in your 2021 federal adjusted gross income, you will be able to subtract the amount on your 2021 Maine individual income tax return.
• Maine State Forms Available Dates - Check back at this link to confirm the release date of 1/20/2022 for the ME final release, before you finalize your state return.