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The RELIEF Act of 2021: Tax and Stimulus Relief for Maryland Individuals and Businesses

by Tom Bailey, CPA, CVA on February 22, 2021 in Coronavirus / COVID-19, Taxation-Corporate, Taxation-Individuals

Relief Act of 2021 header

In late February, Maryland Governor Larry Hogan signed The RELIEF Act of 2021, legislation which will provide up to $1 billion for stimulus payments, unemployment insurance, and grants and loans to individuals and small businesses in Maryland.

The RELIEF Act will deliver the following in an effort to mitigate the impacts of the pandemic:

  • One-time stimulus payments of $300 (individuals) or $500 (families) who filed for the Earned Income Credit in 2019. Qualifying Marylanders will have funds deposited directly into the bank accounts they listed in their 20219 Maryland State tax returns, or mailed to the most recent street address on record.
  • No local or state taxes will be paid by some recipients of unemployment benefits received in 2020 or 2021
  • Businesses may keep sales taxes collected from customers for the next three months (up to $3,000 a month)
  • 2021 unemployment taxes for businesses with fewer than 50 employees may be deferred until January 2022.
  • Individuals who filed, but have not yet received payment for, an unemployment claim, will receive a one-time $1,000 grant.
  • Small businesses would experience no tax increase as a result of benefiting from state loans or grant funds.

Citizens qualifying for stimulus payments must be Maryland residents or permanent residents, and meet the criteria below.

  • $50,954 ($56,844 married filing jointly) with three or more qualifying children
  • $47,440 ($53,330 married filing jointly) with two qualifying children
  • $41,756 ($47,646 married filing jointly) with one qualifying child
  • $15,820 ($21,710 married filing jointly) with no qualifying children

Marylanders may check on their eligibility and the status of payments they are scheduled to receive through the contact information below.

Note that the State of Maryland has identified close to 6,000 eligible stimulus recipients whose address is unknown. CBM suggests that anyone who believes their current address may not be on file reach out to the State to verify their information.

Finally, any individual or family eligible to benefit from The RELIEF Act of 2021 and who has already filed their 2020 Maryland State tax return may file an amended return to receive benefits.

For more information about The RELIEF Act of 2021, contact CBM Principal Tom Bailey using our online contact form.

Councilor, Buchanan & Mitchell (CBM) is a professional services firm delivering tax, accounting and business advisory expertise throughout the Mid-Atlantic region from offices in Bethesda, MD and Washington, DC.