Bill
Bill > LD106
summary
Introduced
01/08/2025
01/08/2025
In Committee
01/08/2025
01/08/2025
Crossed Over
Passed
Dead
04/10/2025
04/10/2025
Introduced Session
132nd Legislature
Bill Summary
This bill provides that benefits paid from the paid family and medical leave benefits program are subject to state income tax to the extent those benefits are not included in the taxpayer's federal adjusted gross income. It also provides that a taxpayer's federal adjusted gross income may be reduced by the amount subject to repayment that has been previously taxed by the State. It also allows individuals filing a new claim for family leave benefits or medical leave benefits to elect to have the administrator of the program deduct and withhold state income tax from the individual's payment of benefits at the rate of 5% and requires the administrator of the program to deduct and withhold state income tax. It also requires the department to advise individuals filing a new claim for benefits that the benefits are subject to state income tax.
AI Summary
This bill addresses the taxation of paid family and medical leave benefits in Maine, introducing several key provisions starting in 2026. The legislation allows individuals filing new claims for family or medical leave to elect to have 5% state income tax automatically withheld from their benefit payments. The bill requires the department administering the program to inform claimants about the tax implications, including that these benefits are subject to state income tax, estimated tax payment requirements, and their option to choose or change tax withholding. Additionally, the bill specifies that family and medical leave benefits will be included in the taxpayer's state taxable income to the extent they are not already part of their federal adjusted gross income. The bill also provides a tax deduction for any previously taxed benefits that are later repaid, ensuring that individuals are not taxed twice on the same income. These changes aim to clarify the tax treatment of paid family and medical leave benefits and provide more transparency and flexibility for program participants.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Leave to Withdraw, Apr 10, 2025 (on 04/10/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://legislature.maine.gov/legis/bills/display_ps.asp?LD=106&snum=132 |
| BillText | https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP0071&item=1&snum=132 |
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