RELIEF FOR MARYLANDERS
DIRECT STIMULUS PAYMENTS FOR LOW TO MODERATE-INCOME MARYLANDERS
This relief begins with immediate payments of $500 for families and $300 for individuals for taxpayers who claimed the Earned Income Tax Credit in Tax Year 2019, and reside in or have permanent residence in Maryland as of February 12, 2021.
Those who qualify for a RELIEF Act stimulus payment will be automatically processed either via direct deposit or paper checks unless their address on file is not verifiable with the U.S. Postal Service.
RELIEF FOR SMALL BUSINESSES
IMMEDIATE SALES TAX CREDITS FOR SMALL BUSINESSES
The RELIEF Act makes a nearly $200 million commitment to supporting small businesses with sales tax credits of up to $3,000 per month for three months - for a total of up to $9,000.
This relief is automatic and based on a sliding scale up to $3,000. For example, if you are a business with $100,000 in monthly revenue and you collect $6,000 in sales taxes, you only remit $3,000. If you have $50,000 in monthly revenue and you collect $3,000 in sales taxes, you keep all $3,000.
UNEMPLOYMENT TAX RELIEF FOR SMALL BUSINESSES
Governor Hogan issued an executive order to prevent small businesses from facing major increases in their unemployment taxes. Under this order, an employer's 2021 tax rate will be calculated based on their non-pandemic experience by excluding the 2020 fiscal year, and instead by using the last three fiscal years of 2017, 2018, and 2019.
In addition, it would allow small businesses and nonprofits with fewer than 50 employees to defer unemployment insurance tax payments in calendar year 2021 to January 2022.
COVID-19 LOAN AND GRANT FORGIVENESS, ADDITIONAL RELIEF FUNDS
The RELIEF Act's loan and grant forgiveness plan would safeguard Maryland business owners against any tax increase triggered by the use of state loan or grant funds. This relief would come at a net zero cost to the state.
MORE SUPPORT FOR UNEMPLOYED MARYLANDERS
Marylanders awaiting unemployment insurance adjudication will be sent $1,000 grants once the state Department of Labor sends the Comptroller’s Office a list of recipients.
The RELIEF Act also includes waiving state income taxes on Unemployment Insurance income received during 2020 and 2021 for single filers who report under $75,000 in income and joint filers who report under $100,000. Taxpayers who have already filed their 2020 State tax returns can file an amended return for a full refund of Maryland state income taxes on those UI benefits.