Maryland stimulus check: RELIEF Act 2021 details

On Monday, the Governor of Maryland Larry Hogan signed into law a bipartisan stimulus bill worth $1.2 billion called the RELIEF Act. Here's what we know so far about the scope of the bill, who's eligible and when stimulus checks could arrive.

The Maryland RELIEF Act: details of the bill

The Maryland Governor’s office say that the bill includes immediate payments of $500 for families and $300 for individuals who filed for the Earned Income Tax Credit (EITC).

Marylanders would qualify for these payments who annually earn:

If you're unsure about your eligibility, you can check it on the Maryland taxes website. For more help, please email Maryland's dedicated email address: ReliefAct@marylandtaxes.gov or call 1-833-345-0787.

The payments are set to provide $178 million in relief to 400,000 Marylanders. In addition, the legislation increases the refundable Earned Income Tax Credit to 45% for families and 100% for individuals.

The RELIEF Act also enhances the Earned Income Tax Credit for these same 400,000 Marylanders by an estimated $478 million over the next three tax years.

Maryland stimulus bill: what else is in the bill?

Support for small businesses

The RELIEF Act sets aside nearly $200 million to support small businesses with sales tax credits of up to $3,000 per month for three months - for a total of up to $9,000. Governor Hogan says that this relief will directly help more than 55,000 Maryland small businesses.

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.

Loan and Grant forgiveness and additional relief funds

According to the Governor's office The RELIEF Act’s loan and grant forgiveness plan aims to safeguard Maryland business owners against any tax increase triggered by the use of state loan or grant funds. This relief could save businesses an estimated $36 million.

The RELIEF Act also includes an additional $500 million in new funding for programs and grants for businesses and nonprofits, housing, health, unemployment insurance, energy assistance, education, and human services.

When will checks be sent, can I get federal and state stimulus?

Maryland Comptroller Peter Franchot announced Tuesday that his office has already begun sending out stimulus checks under the RELIEF Act, which the legislature passed last week and Gov. Larry Hogan signed into law on Monday.

Direct deposits will begin arriving in bank accounts by Friday, Franchot said, and paper checks will be placed in the mail in the coming days.

"Ninety-eight percent of all relief payments will be processed by Friday," Franchot said.

Similar to federal stimulus payments, no application for relief is necessary. State and federal stimulus checks do not cancel each other out, if you are eligible you will be entitled to receive both.

How will I receive the Maryland stimulus check?

If you fulfil the eligibility requirements, your payment will be sent by either mail or direct deposit.

If you received direct deposit of your tax refund for 2019, the Comptroller will send your payment to the bank account provided on that tax return.

If you did not use direct deposit, or the direct deposit was returned by your bank, the Comptroller will then mail your payment to the address they have on file for your tax account. This is generally the address on your most recent tax return or as updated through the United States Postal Service (USPS).

If the Comptroller’s office does not have your valid bank account information or a valid mailing address verified by USPS, you must contact the Comptroller’s office to provide an updated mailing address in order to receive a check payment.

The Maryland government have provided a fact sheet on the Maryland stimulus checks, answering other frequently asked questions.

Scope of Maryland stimulus checks expanded

A recent amendment changed the eligibility requirements of the package so that the Earned Income Tax Credit (EITC) wouldn’t be the only deciding factor in eligibility.

Since taxpayers need a Social Security number to qualify for the EITC, thousands of immigrants wouldn’t see any of that relief, so the amendment ensures that checks will also be sent to ITIN filers who meet the EITC income requirements.

ITIN filers represent a broad group of taxpayers, including undocumented immigrants and “some people who are lawfully present in the U.S., such as certain survivors of domestic violence, Cuban and Haitian entrants, student visa–holders, and certain spouses and children of individuals with employment visas,” according to the National Immigration Law Center.

For all the latest federal and Maryland state stimulus check and child tax credit news and updates as they happen, follow our dedicated rolling live feed.