Why Some Maine Workers Are Getting Larger Refund Checks

It’s not fun, but it’s something that comes but once a year, it’s a seas that we all regret to have to par take in, but par take we must.

It’s tax season and new federal tax changes could actually mean you receive more money, if you are one of the people who works for tips here in Maine, according to WMTW.

If you are employed as a restaurant server, bartender, or other service workers you may see a bigger refund in your checks this year, thanks to updates to the federal tax code. Cool!

According to the experts of tax stuff, one major change is allowing folks who are eligible tipped workers to deduct up to $25,000 in qualified tip income from their federal taxes. This means that workers are taxed on less of what they earn, which can result in a higher refund for you and your family.

Maine Tipped Workers Get a Tax Break Boost

Here's an example, if you earned $20,000 last year and $5,000 of that was tips, they would normally be taxed on the full amount of $20,000 but under the new law, they may only be taxed on the $15,000 difference. This can add up quickly for you.

Tax accountants are saying that many workers in the tip industry are surprised by this change and welcome it.

In some cases, people earning about the same income as last year are seeing refunds increase by more than $1,000.

This extra money is coming at an extremely important time where tipped workers in Maine earn most of their income during the busy summer months. Winter can be slow and put a financial stress on you and your family.

A bigger refund can help in so many ways.

Tax professionals also comment that these changes don’t just help tipped workers because people over 65 and those who work a lot of overtime may also benefit from the updated tax code.

If you work for tips in Maine, this tax season could bring a welcome financial boost.