AUGUSTA –– Unemployment benefits are taxable, but stimulus checks aren’t.
That was the word Monday from the commissioner of the state Department of Administrative and Financial Services during a meeting with some legislators.
Commissioner Kirsten Figueroa said the unemployment benefits, — including the $600 federal share of the checks that went out to thousands of Mainers as businesses closed during the pandemic — are taxable.
During a joint meeting of the legislature’s appropriations and taxation committees, Figueroa said the stimulus checks received in 2020 and this year as well are not subject to state or federal taxes.
She also said the forgivable federal loans small businesses received from the paycheck protection program are tax-free for federal and state income tax purposes, but there remains some debate whether the deductions for expenses connected with the Paycheck Protection Program, such as payroll, would be tax-exempt on state income tax returns.