Maine Form 1040ME Instructions

Form 1040ME Instructions
Income Tax Instructions
Maine Revenue Services
2025 Income Tax
IMPORTANT UPDATE
Note: The instructions you are looking for begin on the next page.
Under current law, Maine conforms to the Internal Revenue Code (the “Code”) as of December
31, 2024, with some exceptions specifically contained in Maine income tax law. Federal Public
Law 119-21, the federal One Big Beautiful Bill Act (“OBBBA”), enacted on July 4, 2025, made
several federal law changes, some of which would require changes to Maine income tax law in
order for Maine to conform to the federal changes. These federal income tax law changes and
their effect on Maine law are expected to be considered during the Second Regular Session of
the 132nd Maine Legislature, which is scheduled to convene in January 2026.
When the Maine Legislature has not had the opportunity to conform or adjust Maine laws in
response to federal income tax law changes, Maine Public Law 2025, chapter 336, permits the
Governor to direct the State Tax Assessor (“Assessor”) to temporarily adjust the administration
of the current tax filing season, pending potential enactment of conformity legislation by the
Maine Legislature.
Governor Janet T. Mills has directed the State Tax Assessor to adopt the federal tax treatment
for qualified disaster losses; sales of qualified farmland property; IRC Section 179 expensing;
business interest deduction; research and experimental expenditures (to allow small business
amended returns only); and other miscellaneous changes. See the conformity documents at
maine.gov/revenue/taxes/tax-policy-office and the October #2 Maine Tax Alert at
maine.gov/revenue/publications/maine-tax-alerts for additional detail.
The 2025 Maine income tax returns and instructions have been developed pursuant to the
Governor’s directive but are contingent upon the enactment by the Legislature of legislation that
addresses the Federal income tax law changes.
Taxpayers may choose to wait for enactment of legislation by the Maine Legislature that
addresses the federal tax law changes by filing under extension pursuant to 36 M.R.S. §§ 5231
and 5295(4).
Returns submitted prior to any newly enacted Maine state legislation must be filed in a manner
consistent with the guidance (forms, instructions, and other documentation) published by the
Assessor in effect at the time of filing. If the Maine Legislature enacts legislation that
subsequently addresses federal income tax law changes that conflict with the earlier published
guidance, affected taxpayers will not be subject to interest or penalty for a resulting
underpayment related to the variance. Additionally, any incorrect refund issued as a result of the
earlier published guidance will not result in interest or penalty accruing prior to the date of
enactment of that legislation. Affected taxpayers are required to file an amended return to
address any conflicts.

2025 Maine Income Tax
Important Update

2025 MAINE
Resident

Individual Income Tax Booklet
Form 1040ME

Maine Electronic Filing Payment Services

For more information, see maine.gov/revenue
Free internet access is available at most local libraries in Maine. See your librarian for details about free internet access.

TAXPAYER ASSISTANCE and FORMS
Get refund status: Visit revenue.maine.gov or call (207)
624-9784 - Weekdays 9:00 a.m. - 12:00 p.m.

Federal income tax information and forms: Call the Internal
Revenue Service at (800) 829-1040 or visit irs.gov.

To download or request forms or other information: Visit
maine.gov/revenue/tax-return-forms or call (207) 624-7894
- Every day 24 Hours.

Visit maine.gov/revenue to obtain the latest tax updates,
view frequently asked questions (FAQs), or email tax-related
questions.

TTY (for persons who are hard of hearing): 7-1-1 - Weekdays
9:00 a.m.- 12:00 p.m.

Collection problems and payment plans: (207) 621- 4300 Weekdays 8:00 a.m. - 5:00 p.m. Call this number if you have
a tax balance due that you would like to resolve.

Taxpayer Assistance: (207) 626-8475 - Weekdays 9:00 a.m. 12:00 p.m. Note: MRS does not provide tax return preparation
assistance over the telephone.*

*Individuals qualified for free tax preparation assistance may schedule an appointment by contacting: the AARP Foundation
Tax-Aide Program at aarp.org/money/taxes/aarp_taxaide, or email [email protected], or call 888-AARPNOW (888227-7669); the Ca$h Coalition of Maine at cashmaine.org/free-tax-prep; or call 2-1-1.

Form 1040ME due date: Wednesday, April 15, 2026
Printed Under Appropriation 010 18F 0002.07

MAINE REVENUE SERVICES
P.O. BOX 1060
AUGUSTA, ME 04332-1060

IMPORTANT CHANGES for 2025
Pension income deduction. 36 M.R.S. §§ 5122(2)(M-2)(2)(a), 5122(2)(M- Voluntary checkoff for the easy enrollment health insurance program.
3), and 5403(8) - 5403(10); L.D. 68; P.L. 2025, c. 271, Pt. C, § 2 and L.D. 22 M.R.S. §§ 5412 and 5413; 36 M.R.S. §§ 191(2)(RRR) and 5294; L.D.
210; P.L. 2025, c. 388, Pt. H, §§ 1, 2, 3, and 4. The law is amended to exclude 609; P.L. 2025, c. 2, Pt. RR, § 1, 2, 3, and 4. The easy enrollment health
from the pension income deduction distributions from an employee retirement insurance program and the individual income tax return voluntary health
plan received prior to age 55 that are not part of a series of substantially equal insurance check-off boxes are repealed. Effective June 20, 2025.
periodic payments made over the life of the primary recipient or the joint lives Underpayment of estimated tax penalty; fourth installment. 36 M.R.S. §
of the primary recipient and the primary recipient’s designated beneficiary, 5228(9); L.D. 288; P.L. 2025, c. 113, Pt. C, § 12. For individual income tax, the
whether or not the benefits are subject to the additional 10% federal tax on penalty for underpayment of estimated tax may not be imposed with respect to
early distributions. Effective September 24, 2025.
the 4th required annual installment if the tax is paid in full by the last day of the
For tax years beginning on or after January 1, 2025, the pension income first month of the following taxable year. Effective September 24, 2025.
deduction is subject to phaseout for taxpayers whose federal adjusted Employer support for volunteer firefighters and volunteer municipal
gross income is more than $125,000 for single individuals or married emergency medical services persons tax credit. 30-A M.R.S. §
individuals filing separate returns; $187,500 for individuals filing as heads 3151(5) and 36 M.R.S. § 5217-F; L.D. 1802; P.L. 2023, c. 478. For tax
of households; and $250,000 for individuals filing married joint returns or years beginning on or after January 1, 2025, the employer support for
as surviving spouses. For tax years beginning after 2025, the phaseout volunteer firefighters and volunteer municipal emergency medical services
threshold amounts are adjusted for inflation.
persons credit is extended to include volunteer municipal firefighters that
Dependent exemption tax credit. 36 M.R.S. § 5219-SS(5); L.D. 210; are part-time or on-call municipal firefighters who receive up to 20% of the
P.L. 2025, c. 388, Pt. Q, § 2 and §§ 5219-SS(4), 5403(8), 5403(9), and compensation of a full-time municipal firefighter and who may receive injury
5403(10); L.D. 210; P.L. 2025, c. 388, Pt. Q, §§ 1, 3, 4, and 5. For tax years and death benefits.
beginning on or after January 1, 2025, the dependent exemption tax credit
amount is doubled for each qualifying dependent of the taxpayer who has Credit for rehabilitation of historic properties after 2007. 36 M.R.S.
§§ 5219-BB(4) and 5219-BB(4-A); L.D. 146; P.L. 2025, c. 444. and 36
not attained six years of age before the end of the taxable year.
Additionally, the phaseout of the dependent exemption tax credit is M.R.S. §§ 5219-BB(1)(E) and 5219-BB(10); L.D. 1755; P.L. 2025, c. 499.
changed to $20 for each $500 (previously $7.50 for each $1,000), or For tax years beginning on or after January 1, 2025, the maximum credit
fraction thereof, by which a taxpayer’s Maine adjusted gross income amount is increased from $5,000,000 in the first year a tax credit may be
exceeds $100,000 for single individuals; $125,000 for individuals filing as claimed to $10,000,000 over the first and second years a tax credit may be
heads of households; $150,000 for individuals filing married joint returns or claimed. No more than $10,000,000 may be claimed over the first two years
as surviving spouses; or, $75,000 for married individuals filing a separate of the project. The annual credit limit for any portion of a certified historic
return. For tax years beginning after 2025, the income phaseout thresholds rehabilitation placed in service after the first two years of the project remains
unchanged at $5,000,000 per year.
are adjusted for inflation.
The tax credit is increased from 25% to 35% of the qualified rehabilitation
Gain on the transfer of a majority interest in a business that provides expenditures (QREs) for certified projects located in rural areas of the
housing to a cooperative affordable housing corporation or municipal State as long as not less than 33% of the aggregate square feet of the
housing authority. 36 M.R.S. §§ 5122(2)(AAA) and 5200-A(2)(JJ); L.D. certified historic structure constitutes apartments, dwellings, or other living
554; P.L. 2025, c. 455. For tax years beginning on or after January 1, 2025, accommodations. The credit is increased to 45% of the QREs if the certified
to the extent included in federal adjusted gross income and otherwise historic structure is also a certified affordable housing project.
subject to Maine income tax, up to $750,000 of gain recognized on the
sale of a majority ownership interest in a qualified business is deductible Tax credit for major food processing and manufacturing facility
in calculating Maine taxable income. The qualified business must provide expansion. 36 M.R.S. § 5219-VV; L.D. 1951; P.L. 2025, c. 489. For tax
housing and be transferred to a cooperative affordable housing corporation years beginning on or after January 1, 2025, the income tax credit for
organized under 13 M.R.S., chapter 85, subchapter 1-A, or a municipal major food processing and manufacturing facility expansion is changed
housing authority as defined in 30-A M.R.S. § 4702(10-A), or an affiliate to 1) repeal the requirement that the qualified applicant’s headquarters be
of a municipal housing authority. A qualified business is any business located in Maine currently and for the five years prior to the application for
that is not publicly traded and is registered with the Secretary of State or approval; 2) extend the time by which the applicant must employ, or will
has its principal place of business in Maine, including a corporation, an S employ, at least 40 full-time employees based in the State from “upon startcorporation, a limited liability company, a limited liability partnership, and a up” to within 12 months of start-up of the facility; 3) extend the time by which
a qualified investment must be made to December 31, 2027; 4) increase the
sole proprietorship. Review and reporting requirements apply.
aggregate value of certificates of approval that may be issued by the DECD
Maine capital investment credit. 36 M.R.S. § 5219-NN(1-A); L.D. 258; from $100M to $200M and increase the cap on any individual certificate of
P.L. 2023, c. 412, Pt. J, § 12. For tax years beginning on or after January approval from $85M to $100M; 5) remove the credit limitation disallowing
1, 2025, the Maine capital investment credit is repealed except that the credit for any tax year following two consecutive tax years during which
unused credit amounts may be utilized to the fullest extent allowed by the the certified applicant’s ordinary business income was not between $5.5M
carryforward provisions for the credit.
and $12M; 6) relax the requirement that the annual income of at least 75%
Dirigo Business Incentives Program. 36 M.R.S. § 5219-AAA; L.D. 258; of the taxpayer’s employees must exceed the most recent annual per capita
P.L. 2023, c. 412, Pt. J, § 13. For tax years beginning on or after January personal income in the county in which the facility is located to apply only to
1, 2025, the Dirigo program income tax credit may be claimed by qualified 75% of those employees who have been employed for at least 12 months;
businesses that have been certified under the program by the Department and 7) add additional reporting requirements for certified applicants.
of Economic and Community Development and that make eligible capital Qualified professional baseball facilities income tax credit. 36 M.R.S.
investments in eligible business property or that provide qualified training §§ 191(2)(UUU) and 5219-BBB; L.D. 2258; P.L. 2023, c. 667. A qualified
to its employees within the State. The credit is equal to: (1) 10% of the applicant that has made a qualified investment of at least $1,000,000
eligible capital investment for property placed in service in Maine during the between October 1, 2023 and November 30, 2026 in a qualified professional
taxable year outside of Cumberland, Sagadahoc, and York counties; plus baseball facility in Maine and that has received a certificate of approval and
(2) 5% of eligible capital investment in property placed in service during the a certificate of completion from DECD may be eligible for a refundable credit
taxable year in Cumberland, Sagadahoc, and York counties; plus (3) $2,000 equal to 1.33% of the qualified investment, up to $133,000 per tax year
for each qualified employee that completes a qualified training program and $1,995,000 in cumulative total. The credit may be claimed over a
during the tax year. The credit is limited to $2 million and is refundable up to 15-year period beginning with the tax year during which the certificate
$500,000 for any one tax year. The credit and the refundability caps must be of completion is issued, or the tax year beginning in 2025, whichever
prorated among affiliated businesses or members of pass-through entities. is later. The credit is subject to reporting requirements and recapture
Carryforward provisions and reporting requirements apply.
provisions. Effective August 9, 2024.
See the complete 2025 Summary of Tax Law Changes available at maine.gov/revenue/publications/rules.

MAINE REVENUE SERVICES MISSION STATEMENT

MRS' mission is to fairly and efficiently administer the State's tax laws with integrity and professionalism.
2

GENERAL INSTRUCTIONS

SPECIFIC INSTRUCTIONS — FORM 1040ME

	 Who must file? A Maine income tax return must be filed by April
15, 2026, if you are a resident of Maine who is required to file a federal
income tax return or if you are not required to file a federal return, but do
have income subject to Maine income tax resulting in a Maine income
tax liability. Even if you are required to file a federal income tax return,
you do not have to file a Maine income tax return if you have no income
addition modifications (Form 1040ME, Schedule 1A, line 11) and your
income subject to Maine income tax is less than the sum of your Maine
standard deduction amount plus your personal exemption amount.
However, you must file a return to claim any refund due to you. Generally,
if you are a nonresident or a safe harbor resident who has income from
Maine sources resulting in a Maine income tax liability, you must file a
Maine income tax return. See below for more information on residency,
including safe harbors. Nonresidents - see Schedule NR instructions for
minimum taxability thresholds. Also see, 36 M.R.S. § 5142(8-B) and MRS
Rule 806.

Note: References to federal form line numbers are subject to change.
Form 1040ME is designed to comply with optical scanning
requirements. Fill in the white boxes carefully in black or blue ink.
Letters and numbers must be entered legibly within the outline
area. Letters must be in upper case only. Begin writing name(s),
address, etc., from the left; dollar amounts start from the right.
Use whole dollar amounts. Round down to the next lower dollar any amount
less than 50 cents. Round up to the next higher dollar any amount 50 cents
or more. Do not enter dollar signs, commas, or decimals. Due to scanning
requirements, only original forms and schedules may be submitted.
Taxpayer Information. Print or type your name(s) and current mailing
address in the spaces provided. Social security number(s) must be
entered in the spaces provided. Do not use dashes.
Check the box above your social security number if this is an amended
return. You must file an amended Maine income tax return if (1) you
have filed an amended federal income tax return that affects your Maine
income tax liability; (2) the Internal Revenue Service has made a change
or correction to your federal income tax return that affects your Maine
income tax liability; or (3) an error has been made in the filing of your
original Maine income tax return. For more information, see the frequently
asked questions at maine.gov/revenue/faq.

	 For answers to frequently asked questions (FAQs), visit maine.
gov/revenue/faq.

What is my Residency Status?
	 To determine your residency status for 2025, read the following.
Domicile: Domicile is the place an individual establishes as their
permanent home and includes the place to which they intend to
return after any period of absence. A number of factors associated
with residency are relevant in the evaluation of a claimed domicile. A
domicile, once established, continues until a new, fixed and permanent
home is acquired. To change domicile, a taxpayer must exhibit actions
consistent with a change. No change of domicile results from moving
to a new location if the intent is to remain only for a limited time, even
if it is for a relatively long duration.

Line A. Maine Property Tax Fairness Credit/Maine Sales Tax
Fairness Credit for Maine residents and part-year residents only.
See Schedule PTFC/STFC. Check the box on line A only if (1) you are
claiming the Property Tax Fairness Credit on line 25d and/or the Sales Tax
Fairness Credit on line 25e; (2) you have no Maine income modifications
on Form 1040ME, Schedule 1A or Schedule 1S; AND (3) you do not file
a federal income tax return. Otherwise, leave the box blank. See the
Schedule PTFC/STFC instructions for Step 1. Note: Schedule PTFC/
STFC is available at maine.gov/revenue/tax-return-forms.

•	Full-year Resident: 1) Maine was my domicile for the entire year of
2025; or 2) I maintained a permanent place of abode in Maine for the
entire year and spent a total of more than 183 days in Maine.

Line 1. FOR MAINE RESIDENTS ONLY. The Maine Clean Election
Fund finances the election campaign of certified Maine Clean Election
Act candidates. Checking this box does not increase your tax or reduce
your refund but reduces General Fund revenue by the same amount.

• Safe Harbor Resident (treated as a nonresident):
	 General Safe Harbor - Maine was my domicile in 2025, I did not
maintain a permanent place of abode in Maine, I maintained a
permanent place of abode outside Maine and I spent no more than 30
days of 2025 in Maine. An individual qualifying under the safe harbor
rule will be treated as a nonresident for Maine individual income tax
purposes.
	 Foreign Safe Harbor - I spent at least 450 days in a foreign country
during any 548-day period occurring partially or fully in the tax year.
The taxpayer must also meet other eligibility criteria. If you qualify for
the Foreign Safe Harbor, you will be considered a safe harbor resident
and treated as a nonresident for the 548-day period even though you
were domiciled in Maine.

Line 2. Check if at least two-thirds of your gross income for 2025 was
from commercial farming or fishing as defined by the Internal Revenue
Code. Include your spouse’s income in your calculation if you are filing
a joint return.
Lines 3-7. Use the filing status from your federal income tax return. If
you filed a married filing jointly federal return and one spouse is
a part-year resident, nonresident or safe harbor resident, see the
Guidance Documents for Schedule NR and Schedule NRH available
at maine.gov/revenue/tax-return-forms (select Income Tax Guidance
Documents). If you are filing married filing separately, be sure to include
your spouse’s name and social security number.

•	 Part-year Resident: I was domiciled in Maine for part of the year and
was not a full-year resident as defined in 2) above.

Lines 8-11a. See the General Instructions above to determine your
residency status. Nonresident aliens: check box 11 if you were a
nonresident of Maine or box 11a if you were a resident of Maine during
all or part of the tax year. If you check box 8a, 9, 10, 11, or 11a, enclose
a copy of your federal tax return.

•	Nonresident: I was not a resident or part-year resident in 2025, but I do
have Maine-source income. Follow the federal filing requirements
for filing status, federal adjusted gross income, and standard or
itemized deductions.
NOTE: Safe harbor residents, part-year residents, and nonresidents,
file Form 1040ME and Schedule NR or NRH.
Schedules NR and NRH are available at maine.gov/revenue/tax-returnforms.
For additional information on determining Maine residency or if you are
in the military, see the Maine Revenue Services Guidance Documents
titled Determining Residency Status and Residency Safe Harbors
for Residents Spending Time Outside Maine available at maine.gov/
revenue/tax-return-forms (select Income Tax Guidance Documents).

3

Line 13. Personal exemptions. If your Filing Status on
lines 3 through 7 is:
• Single*;
• Married filing separately*;
• Head of household; or*;

• Qualifying surviving

spouse*

Enter on
line 13:

surviving spouse, you must complete the Worksheet for Standard/
Itemized Deductions below to calculate your deduction amount for line 17.

1

*The additional deduction amounts for your spouse (boxes 12c and 12d)
apply only if you can claim an exemption for your spouse.

*Except, if you may be claimed as a dependent on
another person's return OR

0

*If married filing separately AND you would claim a
federal personal exemption for your spouse, if not
for the suspension of the federal personal exemption
deduction

2

• Married filing jointly**

Otherwise, if your income does not exceed the amount for your filing
status and you use the standard deduction on your federal return, you
must use the Maine standard deduction for your filing status on your
Maine return. See the Maine Standard Deduction Chart for line 17.
If you itemized deductions on your federal return, complete Form
1040ME, Schedule 2. If the amount on Schedule 2, line 7 is less than
your allowable standard deduction, use the standard deduction, except,
if you are filing as a nonresident alien, you must use itemized deductions.

2

**Except, if married filing jointly AND BOTH you and
your spouse may be claimed as dependents on another
person’s return OR

0

**If married filing jointly AND only ONE spouse may be
claimed as a dependent on another person’s return

1

Maine Standard Deduction Chart for line 17
Enter the number of boxes checked on Form
1040ME, lines 12a, 12b, 12c, and 12d:
(Do not enter the number of exemptions from
Form 1040ME, line 13):

Line 13a. Enter the number of qualifying children and dependents for
whom you are eligible to claim the federal child tax credit or the credit
for other dependents (from federal Form 1040 or Form 1040-SR,
“Dependents,” line (7). Also see Form 1040ME, Schedule A, line 1 or
line 10, and related instructions.

If your Filing Status is:

Note: If you are filing Form 1040ME only to claim the PTFC/STFC,
have no income addition or subtraction modifications, and do not
file a federal income tax return, skip to Line 25d.
Part-year residents, Nonresidents, and Safe Harbor residents, see
Schedule NR or NRH.

Single

None
1
2

$15,000
$17,000
$19,000

Married filing Jointly or
Qualifying Surviving
Spouse

None
1
2
3
4

$30,000
$31,600
$33,200
$34,800
$36,400

None
1*
2*
3*
4*

$15,000
$16,600
$18,200
$19,800
$21,400

None
1
2

$22,500
$24,500
$26,500

Married filing Separately*

Line 14. Enter the federal adjusted gross income shown on your federal
Form 1040, line 11a or Form 1040-SR, line 11a.
Line 15a. Income Addition Modifications. Complete Maine Schedule
1A to calculate your entry for this line.

* See note above

Line 15b. Income Subtraction Modifications. Complete Maine
Schedule 1S to calculate your entry for this line.

Head of Household

Line 17. Deduction. CAUTION: If the amount on Form 1040ME, line
16 is more than $100,000 if single or married filing separately; $150,000
if head of household; or $200,050 if married filing jointly or qualifying

AND the number
Enter on Form
in the box above 1040ME, line, 17:
is:

Worksheet for Standard / Itemized Deductions (for Form 1040ME, line 17)
Use this worksheet to calculate your standard deduction or itemized deduction if your Maine adjusted gross income for 2025 is greater than $100,000
if single or married filing separately; $150,000 if head of household; or $200,050 if married filing jointly or qualifying surviving spouse.
1.	 Enter your 2025 Maine adjusted gross income (Form 1040ME, line 16).................................................................. 1.	

_____________________

2.	 Enter $100,000 if single or married filing separately; $150,000 if head of household; or......................................... 2.	
	
$200,050 if married filing jointly or qualifying surviving spouse.

_____________________

3.	 Subtract line 2 from line 1. If zero or less, STOP here. Your deduction is not limited............................................... 3.	

_____________________

4.	 Enter $75,000 if single or married filing separately; $112,500 if head of household; or............................................ 4.	
	
$150,000 if married filing jointly or qualifying surviving spouse.

_____________________

5.	 Divide line 3 by line 4. If one or more, enter 1.0000.................................................................................................. 5.	

___ . ___ ___ ___ ___

6.	 Enter your 2025 standard deduction from the chart above or your 2025 Maine itemized deductions from
	
Form 1040ME, Schedule 2, line 7, whichever applies.............................................................................................. 6.	

_____________________

7.	 Multiply line 6 by line 5.............................................................................................................................................. 7.	

_____________________

8.	 2025 Maine itemized deductions or standard deduction. Subtract line 7 from line 6. Enter this amount
	
on Form 1040ME, line 17.......................................................................................................................................... 8.	

_____________________

separately, you must complete the Worksheet for Phaseout of Personal
Exemption Deduction Amount below to calculate your exemption amount
for line 18.

Line 18. Exemption. Multiply the amount shown on line 13 by $5,150.
CAUTION: If the amount on Form 1040ME, line 16 is more than $333,450
if filing single; $366,750 if head of household; $400,100 if married
filing jointly or qualifying surviving spouse; or $200,050 if married filing
4

Worksheet for Phaseout of Personal Exemption Deduction Amount (for Form 1040ME, line 18)
Use this worksheet to calculate your personal exemption amount if your Maine adjusted gross income for 2025 is greater than $333,450 if single;
$366,750 if head of household; $400,100 if married filing jointly or qualifying surviving spouse; or $200,050 if married filing separately.
1.	 Enter your 2025 Maine adjusted gross income (Form 1040ME, line 16).................................................................. 1.	

_____________________

2.	 Enter $333,450 if single; $366,750 if head of household; $400,100 if married filing jointly or qualifying
	
surviving spouse, or $200,050 if married filing separately......................................................................................... 2.	

_____________________

3.	 Subtract line 2 from line 1. If zero or less, STOP here. Your personal exemption deduction amount is not limited.... 3.	

_____________________

4.	 Enter $125,000 if single or head of household or married filing jointly or qualifying surviving spouse; $62,500 if
	
married filing separately............................................................................................................................................ 4.	

_____________________

5.	 Divide line 3 by line 4. If one or more, enter 1.0000.................................................................................................. 5.	

___ . ___ ___ ___ ___

6.	 Enter the 2025 personal exemption deduction amount (multiply the amount on Form 1040ME, line 13 by
	$5,150)...................................................................................................................................................................... 6.	

_____________________

7.	 Multiply line 6 by line 5.............................................................................................................................................. 7.	

_____________________

8.	 2025 Maine personal exemption deduction amount. Subtract line 7 from line 6. Enter this amount on
	
Form 1040ME, line 18............................................................................................................................................... 8.	

_____________________

Line 20a. Enter the amount of credits previously used to reduce
Maine income tax that are now subject to recapture. Enclose supporting
documentation or applicable worksheet(s) to show the calculation of the
amount entered on this line.

Line 30a. If you collected $2,000 or less in sales tax on casual rentals
of living quarters, you may report the tax on this line. Enter the amount
of tax collected on rentals made in 2025 not already reported on a sales
tax return. The tax rate on casual rentals occurring during 2025 is 9%.

Line 21. Note: Schedules NR and NRH are available at maine.gov/
revenue/tax-return-forms.

Note: To report sales tax greater than $2,000, you must file a sales/use
tax return at revenue.maine.gov.

Line 24. Subtract line 23 from line 22. Nonresidents and Safe Harbor
Residents only - Note: Unused business credits claimed on Schedule
A, lines 15 through 20 may be eligible to be carried over to future tax years.
See the instructions for Maine Schedule A.

Line 32. Underpayment Penalty. If line 24 less the sum of lines 25a,
25c, 25d, 25e, and REW amounts included in line 25b is $1,000 or more,
use Form 2210ME to see if you owe an underpayment of estimated tax
penalty. Form 2210ME is available at maine.gov/revenue/tax-return-forms.

Line 25a. Enter the total amount of Maine income tax withheld. Enclose
(do not staple or tape) supporting W-2, 1099, and 1099ME forms.
Unless the 1099 form is required as supporting documentation for another
schedule or worksheet, send 1099 forms only if there is State of Maine
income tax withheld shown on them.

Line 34b. Refunds of $1.00 or more will be issued to you.
Lines 34c-34e. To comply with banking rules, you must check the box to
the left of line 34d if your refund is going to an account outside the United
States. If you check the box, a paper check will be mailed.
The account to receive the direct deposit must be in your name. If you
are married, the account can be in either spouse's name or both spouses'
names. Note: Some banks will not allow a joint refund to be deposited
into an individual account.

Line 25b. Enter the total amount of Maine estimated tax paid for tax
year 2025. Also include on this line extension payments and amounts
withheld on the sale of real estate in Maine. Enclose a copy of Form
REW-1-1040 or, for electronic payments, a copy of the Summary of your
Real Estate Withholding Payment to support your entry. If you are filing
an amended return, include amounts paid with your original, or previously
adjusted return, including use tax, voluntary contributions, and estimated
tax penalty amounts.

Line 34c. Routing Number (“RTN”) must be 9 digits.
Line 34d. Bank Account Number can be up to 17 characters (both numbers
and letters). Omit hyphens, spaces, and special symbols. Enter the number
from left to right.

Line 25d. For Maine residents and part-year residents only. Enter the
amount from Schedule PTFC/STFC, line 16.

Line 35. Total Amount Due. Do not send cash. If you owe less than $1.00,
do not pay it. Remit your payment of $1.00 or more using the Maine Tax
Portal ("MTP") at revenue.maine.gov or enclose (do not staple or tape)
a check or money order payable to Treasurer, State of Maine with your
return. Include your complete name, address and telephone number on
your check or money order.

Line 25e. For Maine residents and part-year residents only. Enter the
amount from Schedule PTFC/STFC, line 17 or line 17a, whichever applies.
Line 26. If you are filing an amended return, include any carryforward or
refund amount allowed on the original, or previously adjusted return.

Third Party Designee. Complete this section if you would like to allow
MRS to call or accept information from another person to discuss your
2025 Maine individual income tax return. Choose any 5-digit personal
identification number which will be used to ensure MRS employees
speak with only the individual you have designated. This authorization
will automatically end on April 15, 2027.

Line 29. If the amount on line 27 is a negative amount, treat it as a positive
amount and add it to the amount on line 24.
Note: For purposes of calculating Form 1040ME, lines 28 and 29, any
negative amount entered on Form 1040ME, line 24 should be treated as zero.
Line 30. If you purchased items for use in Maine from retailers who did
not collect the Maine sales tax (such as businesses in other states or
countries and unregistered mail order and internet sellers), you may owe
Maine use tax on those items. The tax rate for purchases in 2025 is 5.5%.
If you paid another state’s sales or use tax on any purchase, that amount
may be credited against the Maine use tax due on that purchase. If you do
not know the exact amount of Maine use tax that you owe, multiply your
Maine adjusted gross income from line 16 by .04% (.0004).
Note: For items that cost $1,000 or more, you must add the tax on those
items to the percentage amount. Use tax on items that cost more than
$5,000 must be reported on an individual use tax return by the 15th day
of the month following its purchase. For additional information, visit maine.
gov/revenue/taxes/sales-use-service-provider-tax or email sales.tax@
maine.gov.

Payment Plan. Check the box below your signature(s) if you are
requesting a payment plan. Your first payment should be submitted
with your return and you should continue to make payments until Maine
Revenue Services contacts you. Payment plans may also be requested
by logging into your account on the Maine Tax Portal at revenue.maine.
gov. For more information, email [email protected].
Injured Spouse. Check the box below your signature(s) if you are an
injured spouse for a Maine Revenue Services income tax debt only.
(See federal Form 8379 and related instructions.) If you have a married
joint refund which may be set off to a State agency including DHHS, you
must submit your claim form directly to that agency. For more information,
email [email protected].
5

SCHEDULE 1A — Income Addition Modifications - See page 19
For more information on Maine income modifications, visit maine.gov/revenue/tax-return-forms.
Also include the taxpayer's distributive share of addition modification items return. In like manner, any loss, deduction, or expense of a pass-through
from partnerships, S corporations, and other pass-through entities.
entity financial institution reflected in an owner’s federal income is not
Line 1. Enter the income from municipal and state bonds, other than permitted in calculating the Maine taxable income of the owner. 36
Maine, that is not included in your federal adjusted gross income (i.e., M.R.S. § 5122(1)(K).

Line 8. Wellness programs tax credit adjustment. Maine taxpayers
who claim the Maine credit for wellness programs under 36 M.R.S. §
5219-FF and deducted related expenses on their federal tax return
must increase Maine taxable income by the amount federal income was
reduced. 36 M.R.S. § 5122(1)(EE).

enter bond interest from City of New York but not Portland, Maine). 36
M.R.S. § 5122(1)(A).

Line 2. Net operating loss recovery adjustment. Enter on this line any
amount of federal net operating loss carry forward that has been previously
used to offset Maine addition modifications. For more information, go
to maine.gov/revenue/tax-return-forms (select Income Tax Guidance
Documents). 36 M.R.S. §§ 5122(1)(H) and 5122(1)(M).

Line 9. Enrolled tribal members in Maine. If the amount on Schedule
ETM column C, line 5 is negative, enter that amount on Schedule 1A, line
9 as a positive number. Enclose Schedule ETM available at maine.gov/
revenue/tax-return-forms. Also see Form 1040ME, Schedule 1S, line 25.

Line 3. Enter 2025 Maine Public Employees Retirement System
contributions. See your Maine state or municipal W-2 form. 36 M.R.S.
§ 5122(1)(G).

Line 10. Other - OBBBA expensing of domestic research and
experimental (R & E) expenditures add-back: For federal tax purposes,
under the One Big Beautiful Bill Act (OBBBA), for tax years beginning
after 2024, taxpayers may elect to deduct domestic R & E expenditures
incurred during the tax year in full (IRC, Section 174A(a)), or to amortize
the expenditures over a period of at least 60 months (IRC, Section
174A(c)(1)). The OBBBA also allows certain taxpayers to accelerate
unamortized R & E expenditures incurred during 2022, 2023, and 2024
to tax years 2025 and 2026 (OBBBA, Section 70302(f)(2)). For Maine tax
purposes, an adjustment must be made to reverse the effects of these
federal deductions. The domestic R & E expenditures must continue to be
amortized over a five-year period as calculated before enactment of the
OBBBA. To calculate the amount to enter on this line:

Line 4. Bonus depreciation add-back. Line 4 relates to Maine’s
decoupling from the federal special depreciation deduction through IRC §
168(k), commonly known as bonus depreciation. To calculate the amount
to enter on this line, complete a pro forma federal Form 4562 as if no bonus
depreciation was claimed on the property placed in service in tax year
2025. The total addition modification is the difference between the federal
depreciation claimed on Form 4562 and the depreciation calculated on the
pro forma Form 4562. Enclose copies of the original and pro forma federal
Forms 4562, along with the add-back calculation, with the completed
Form 1040ME. Amounts entered on this line are eligible for the recapture
subtraction modification on Schedule 1S in future years (for example, see
Schedule 1S, line 10). 36 M.R.S. § 5122(1)(KK).

1) Complete the applicable pro forma federal tax form(s) to compute
the federal deduction claimed for the tax year with respect to:

For more information, go to maine.gov/revenue/tax-return-forms (select
Income Tax Guidance Documents). Also, refer to the instructions for
Schedule 1S, line 10 below.

	 a) fully expensed domestic R & E expenditures incurred during the
tax year as allowed under IRC, Section 174A(a); plus

Line 5. Enter your share of a fiduciary adjustment (addition modifications)
relating to income from an estate or trust (36 M.R.S. § 5122(3)). Attach a
copy of your federal Schedule K-1.

	 b) domestic R & E expenditures amortized over a period of at least
60 months as allowed under IRC, Section 174A(c)(1); plus

Line 6. Election to recognize total gain from the sale of Maine real or
tangible property – nonresidents only. Nonresident individuals may elect
to recognize the entire gain from an installment sale during the taxable
year of real or tangible property located in Maine. The election may only
be made on a timely filed original return and, once made, is irrevocable.
Enter on this line the total gain from the sale of the Maine property that
would have been included in your federal adjusted gross income if you
had not reported the gain on the installment sale basis, less the amount
of the gain from the sale already included in your federal adjusted gross
income reported on Form 1040ME, line 14. An entry on this line constitutes
an election under this paragraph. 36 M.R.S. § 5147.

	 c) the accelerated amortization deduction for domestic research
expenditures (OBBBA, Section 70302(f)(2)).
2) Complete the applicable pro forma federal tax forms(s) to compute
the allowable federal deduction for domestic R & E expenditures with
respect to IRC, Section 174, and amendments to that Section as of
December 31, 2024 (effective immediately before enactment of the
OBBBA).
3) Subtract the result of Step 2 from Step 1. If negative, enter zero on
Line 10 and enter the absolute value of the calculation on Line 9 of the
Form 1040ME, Schedule 1S, Other Income Subtraction Modifications
Worksheet (for Line 26). Provide a statement listing each component
of the calculation.

Line 7. Adjustment for loss, deductions, and other expenses of a
pass-through entity financial institution subject to Maine franchise
tax. Under Maine law, financial institutions are subject to the Maine
franchise tax, regardless of how the institution is organized. This
includes a financial institution organized as a pass-through entity, such
as a partnership or limited liability company. Maine law provides that
the income from an ownership share in a pass-through entity financial
institution is not taxable income on the owner’s Maine income tax

Note: When calculating amortization under pre-OBBBA law in Step 2, do
not include expenditures incurred during 2022, 2023, or 2024 for which
an amended federal return was filed to claim an expense deduction for
those tax years pursuant to enactment of the OBBBA, Section 70302(f)(1).
Amended Maine income tax returns must be filed for tax years 2022, 2023,
and 2024 to deduct unamortized domestic R & E expenditures incurred
during these tax years.

SCHEDULE 1S — Income Subtraction Modifications - See pages 21 and 22
For more information on Maine income modifications, visit maine.gov/revenue/tax-return-forms.
Line 2. Enter the amount of any state or local income tax refund
included on federal Form 1040 or 1040-SR, Schedule 1, line 1. 36 M.R.S.
§ 5122(2)(F).

Also include the taxpayer’s distributive share of subtraction modification
items from partnerships, S corporations, and other pass-through entities.
If you are a resident of Maine and have income taxed by another state, you
may be eligible for the Credit for Income Tax Paid to Other Jurisdictions.
See Form 1040ME, Schedule A, line 14.

Line 3. If included in federal adjusted gross income, enter the taxable
amount of social security benefits issued by the U.S. Government and
railroad retirement benefits (tier 1 and tier 2) and unemployment and
sick benefits issued by the U.S. Railroad Retirement Board. 36 M.R.S.
§ 5122(2)(C).

Line 1. If included in federal adjusted gross income, enter income from
direct obligations of the U.S. Government, such as Series EE and
Series HH Savings bonds and U.S. Treasury bills and notes. 36 M.R.S.
§ 5122(2)(A).
6

Line 4. Enter the pension income deduction from the Pension Income
Deduction Worksheet, line P10. Include copies of your 1099 forms to verify
the subtraction. Enclose worksheet. 36 M.R.S. § 5122(2)(M-2).

overseas deployment and excludes standard duty activity, such as training
and administrative activities.
Nonresidents - If included in federal adjusted gross income and not
otherwise removed from Maine income, enter the amount of military
compensation received during the portion of the taxable year that you
were a nonresident of Maine. 36 M.R.S. § 5142(7).

The benefits received under a United States military retirement plan,
including survivor benefits, are fully exempt from Maine income tax.
Only military retirement pay received as a result of service in the United
States Army, Navy, Air Force, Marines, Coast Guard, or Space Force qualify
for the military retirement deduction on line P9.

Line 6. Military annuity payments made to a survivor of a deceased
member of the military as a result of service in the active or reserve
components of the United States Army, Navy, Air Force, Marines, Coast
Guard, or Space Force under a survivor benefit plan or reserve component
survivor benefit plan in accordance with 10 United States Code, Chapter
73 are exempt from Maine individual income tax. The deduction must
exclude any amount included in the Maine pension income deduction on
Form 1040ME, Schedule 1S, line 4. 36 M.R.S. § 5122(2)(HH).

In addition, you and your spouse (if married) may each deduct up to
$48,216 of other eligible pension income* that is included in your federal
adjusted gross income. The $48,216 cap must be reduced by any social
security and railroad retirement benefits received, whether taxable or not.
Deductible pension income, other than military retirement pay, includes state
and federal pension benefits and retirement benefits received from plans
established and maintained by an employer for the benefit of its employees
under Internal Revenue Code (IRC) sections 401(a) (qualified pension
plans, including qualified 401 SIMPLE plans), 401(k) (qualified cash or
deferred arrangements), and 403 (employee annuities). Deductible pension
income also includes benefits received from an individual retirement
account under IRC section 408, Roth IRA accounts under IRC section
408A, SIMPLE individual retirement accounts under IRC section 408(k),
simplified employee pension plans under IRC section 408(p), benefits
received under IRC section 457(b) (state and local government/tax exempt
organizations/eligible deferred compensation plans), except that pickup contributions received from the Maine Public Employees Retirement
System (MainePERS) allowed to be deducted on Form 1040ME, Schedule
1S, line 7 may not be included in the deductible pension amount.

Line 7. Use this line only if you retired after 1988 and are receiving
retirement benefits from the Maine Public Employees Retirement
System (MainePERS). Subtract the amount in box 16 from the amount
in box 2a on Form 1099-R issued by MainePERS. Also enter on this line
MainePERS rollover amounts previously taxed by the state, whether or
not included in federal adjusted gross income. Rollover amounts may be
subtracted fully or in part during the tax year of the rollover. Any amount
not subtracted in the tax year of the rollover may be subtracted within the
two years immediately following the year of the rollover. However, the
total amount subtracted over the three-year period may not exceed the
pick-up contributions previously taxed by Maine. 36 M.R.S. § 5122(2)(E).
Line 8. If your federal adjusted gross income is not more than $100,000
if single or married filing separately or $200,000 if married filing jointly,
qualifying surviving spouse, or head of household, enter up to $1,000,
per beneficiary, of contributions made to a Maine or non-Maine qualified
tuition program ("529 college savings plan"). 36 M.R.S. § 5122(2)(YY).

Note that a conversion of benefits from one account to another
does not qualify for the pension income deduction. For example, a
deduction may not be taken when a taxpayer converts a traditional
IRA to a Roth IRA. The taxpayer, in this case, does not receive a
retirement or IRA benefit at the time of conversion.

Line 9. Enter your share of a fiduciary adjustment (subtraction
modifications) relating to income from an estate or trust (36 M.R.S. §
5122(3)). Enclose a copy of the federal Schedule K-1.

Pension benefits that do not qualify are those received from an ineligible
deferred compensation plan under IRC section 457(f), refunds of excess
contributions, lump-sum distributions included on federal Form 4972 and
distributions received prior to age 55 that are not part of a series of equal
periodic payments made over the life of the recipient and the recipient’s
designated beneficiary, whether subject to the additional 10% federal tax
on early distributions or not. See federal Form 5329, Part 1, or federal Form
1040 or 1040-SR, Schedule 2, line 8. Also, disability benefits reported as
wages on your federal income tax return do not qualify.

Line 10. Bonus Depreciation and Section 179 Recapture amounts
required to be added to income under 36 M.R.S. § 5122(1) may be
recaptured over the life of the applicable asset in accordance with 36 M.R.S.
§ 5122(2), paragraphs Q, AA, II, MM, NN, OO, and RR. Individual owners
of certain electing S corporations may be allowed bonus depreciation
recapture over the life of the applicable asset pursuant to 36 M.R.S. §
5122(2)(X). For more information and examples, visit maine.gov/revenue/
tax-return-forms (select Income Tax Guidance Documents).

*Eligible pension income does not include benefits earned by
another person, except in the case of a surviving spouse. Only
the individual who earned the benefit from prior employment may
claim the pension income for the deduction. However, a widowed
spouse receiving survivor’s benefits under an eligible pension plan
may claim that amount for purposes of this deduction, but the total
pension deduction for the surviving spouse may not exceed $48,216.

Line 11. Eligible registered caregivers, registered dispensaries, and
manufacturing facilities as defined by 22 M.R.S. § 2422 may claim a
deduction for expenses related to carrying on a medical cannabis trade
or business, in an amount equal to the deduction that would otherwise be
allowable for Maine purposes to the extent the deduction was disallowed
under Internal Revenue Code, Section 280E. Also enter your registration
number or business sales tax number. Enclose a copy of a pro forma
federal Schedule C or pro forma federal Form 1065 or 1120-S, including
Schedules K and K-1, showing the calculation of the expenses included
on this line. 36 M.R.S. § 5122(2)(PP).

Line 5. Non-Maine active duty military pay received by a Maine
resident and military compensation received by a nonresident of
Maine. 36 M.R.S. § 5122(2)(LL).

Line 12. Eligible adult use cannabis establishments and testing facilities
as defined by 28-B M.R.S. § 102 may claim a deduction for expenses
related to carrying on an adult use cannabis trade or business, in
an amount equal to the deduction that would otherwise be allowable for
Maine purposes to the extent the deduction was disallowed under Internal
Revenue Code, Section 280E. Also enter your registration number or
business sales tax number. Enclose a copy of a pro forma federal Schedule
C or pro forma federal Form 1065 or 1120-S, including Schedules K and
K-1, showing the calculation of the expenses included on this line. 36
M.R.S. § 5122(2)(PP).

Maine residents - If included in federal adjusted gross income and not
otherwise removed from Maine income, enter the amount of military
pay earned during the portion of the taxable year that you were a Maine
resident for service performed outside of Maine in compliance with written
military orders.
Military pay is compensation for: (1) active duty service in the active
components of the United States Army, Navy, Air Force, Marines,
Coast Guard, or Space Force if your permanent duty station during the
performance of such service was located outside of Maine; OR (2) active
duty service in the active or reserve components of the United States Army,
Navy, Air Force, Marines, Coast Guard, Space Force, or in the Maine
National Guard if such service was in support of a federal operational
mission or a declared state or federal disaster response when the orders
were either at federal direction or at the direction of the Governor of Maine.
Note: A “federal operational mission” is limited to activity in support of

Line 13. Net operating loss (NOL) recapture. For Maine tax purposes,
taxpayers may, in years subsequent to the year of the loss, deduct
an amount equal to the net operating loss carried back for federal tax
purposes that was required to be added back to Maine income under 36
M.R.S. §§ 5122(1)(H) and 5122(1)(M), except that this NOL deduction
7

was suspended for tax years beginning in 2009, 2010 and 2011. The
carryover period for suspended NOL recapture subtraction modifications
is equal to the allowable federal NOL carryforward period plus the
number of years the subtraction modification was suspended.

that are included in your federal adjusted gross income due to an ownership
share in the financial institution that is a partnership, S corporation, or
entity disregarded as separate from its owner. Also enter the employer
identification number of the financial institution. 36 M.R.S. § 5122(2)(K).

Also include on this line the amount of NOL carryforward resulting
from excess business losses not allowed to be claimed for Maine tax
purposes for a tax year beginning in 2018, 2019, or 2020 to the extent
the amount does not reduce Maine taxable income to less than zero,
has not been previously used to offset Maine taxable income, and is
not included in the calculation of any NOL carryback or carryforward for
federal tax purposes.

Line 22. Income from depreciation recapture on the sale of multifamily affordable housing property. To the extent not otherwise
removed from Maine income, enter the total amount of capital gains and
ordinary income resulting from depreciation recapture in accordance
with Internal Revenue Code, Sections 1245 and 1250 realized on the
sale of multi-family affordable housing property certified by the Maine
State Housing Authority ("MaineHousing"). A copy of the MaineHousing
certificate must be attached to the return. 36 M.R.S. § 5122(2)(Z).

Individual shareholders of an electing S corporation may also recapture
an NOL addition modification claimed by the entity in a year the
corporation was taxed as a C corporation. For more information on
Maine’s treatment of NOLs, go to maine.gov/revenue/tax-return-forms
(select Income Tax Guidance Documents). 36 M.R.S. §§ 5122(2)(H),
5122(2)(P), 5122(2)(V), 5122(2)(W), 5122(2)(CC), and 5122(2)(UU).

Line 23. Sale of eligible timberlands. A subtraction modification is
allowed on the Maine individual income tax return equal to the applicable
percentage of the gain from the sale of sustainably managed,
eligible timberlands that is included in federal adjusted gross income.
The modification may not reduce Maine taxable income to less than zero;
however, unused portions may be carried forward for up to 10 years.
Eligible timberlands must be held by the taxpayer for at least 10 years
beginning on or after January 1, 2005. Enclose with your return a copy
of the written statement from a licensed forester certifying at the time of
sale, the sustainably managed eligible timberlands. Use lines 1) through
3) below to calculate the amount of the modification. 36 M.R.S. § 5122(2)
(U).

Line 14. FAME nonprofit student loan repayment program. An
individual taxpayer may claim, to the extent included in federal adjusted
gross income, the income subtraction modification for student loan
payments made directly to a lender on behalf of the taxpayer by a
student loan repayment program funded by a nonprofit foundation and
administered by the Finance Authority of Maine for residents of the State
employed by a business located in the state. 36 M.R.S. § 5122(2)(XX).

1)	 Enter the gain recognized on the sale of eligible
	
timberlands included in federal adjusted gross
	income................................................................ $___________

Line 15. Qualified health care student loan payments. A qualified
health care employee (generally, an individual who is licensed as a
registered nurse, practical nurse, osteopathic physician, or to practice
medicine or surgery and is employed by a hospital in Maine) may claim,
to the extent included in the employee’s federal adjusted gross income,
the income subtraction modification for student loan payments made by
an employer directly to the lender. 36 M.R.S. § 5122(2)(SS).
Line 16. Municipal property tax benefits for senior citizens. A
municipality, by ordinance, may adopt a program that permits claimants
who are at least 60 years of age to earn benefits up to a maximum $1,465
by volunteering to provide services to the municipality. The amount of the
benefits received during the tax year are exempt from Maine individual
income tax. Enter on this line the amount of volunteer benefits you
received, up to the maximum allowed, to the extent included in federal
adjusted gross income. 36 M.R.S. §§ 5122(2)(EE) and 6232(1-A).
Line 17. Family Development Account proceeds. Individuals whose
family income is below 200% of the poverty level may open a family
development account in connection with an approved community
development organization. Account balances and withdrawals are
exempt from Maine individual income tax to the extent included in federal
adjusted gross income. For more information, contact the University of
Maine. 20-A M.R.S. § 10983(4).
Line 18. Interest from Maine Municipal General Obligation Bonds,
Private Activity Bonds and Airport Authority Bonds. Enter on this
line interest from Maine municipal general obligation bonds, private
activity bonds, and bonds issued by a Maine airport authority included in
federal adjusted income. 30-A M.R.S. § 5772(9) and 6 M.R.S. § 179(10).

2)	
	
	
	

Enter the applicable percentage amount
shown below for the number of years the
eligible timberlands were held by the taxpayer
beginning on or after January 1, 2005................ ____________

	
	
	

If the number of years eligible timberlands
were held by the taxpayer beginning on or
after January 1, 2005 is:
At least	 But less than	 Enter
10	 11	.0667
11	 12	.1333
12	 13	.2
13	
14	
.2667
14	
15	
.3333
15	
16	
.4
16	
17	
.4667
17	 18	.5333
18	 19	.6
19	 20	.6667
20	 21	.7333

3)	 Multiply line 1 by line 2. Enter result on
	
Schedule 1S, line 23......................................... $____________
Line 24. Business interest deduction recapture. The amount of
business interest deduction previously disallowed for Maine tax purposes
and required to be added-back under 36 M.R.S. § 5122(1)(NN) may
be recaptured, up to 25% per taxable year, to the extent that Maine
taxable income is not reduced below zero and the amount has not been
previously used to reduce Maine taxable income. 36 M.R.S. § 5122(2)
(VV).

Line 19. A subtraction modification is allowed on the Maine individual
income tax return in an amount equal to the reduction in your salaries
and wages expense deduction directly related to claiming the federal
Work Opportunity Credit or Empowerment Zone Credit. These amounts
are reported on federal Form 5884, line 2 or federal Form 8844, line 2.
(Owners of pass-through entities, enter your share of the amount from
line 3 of these forms to the extent not included on line 2.) 36 M.R.S.
§ 5122(2)(B).

Line 25. Enrolled tribal members in Maine. If the amount on Schedule
ETM, column C, line 5 is greater than zero, enter that amount on line 25.

Line 20. Enter on this line the reduction in federal taxable income
related to vessel earnings from fishing operations that were
contributed to a capital construction fund. 36 M.R.S. § 5122(2)(I).
Enclose a copy of the federal Form 1040.

Line 26. Other. See Form 1040ME, Schedule 1S, Other Income
Subtraction Modifications Worksheet (for Line 26) Tax Year 2025
available at maine.gov/revenue/tax-return-forms that lists the income
subtraction modifications that may be entered on this line. Unless
specifically stated, do not enter non-Maine income on this line.

Line 21. Income from ownership share in a financial institution. Enter
on this line all items of income, gain, interest, dividends, royalties, and other
items of income of a financial institution subject to the Maine franchise tax
8

SCHEDULE A — Maine Tax Adjustments - See pages 25 and 26
Tax Credit Worksheets Required. For more information on all tax credits and related worksheets, visit maine.gov/revenue/tax-return-forms (select
Worksheets for Tax Credits). You must complete and attach the applicable tax credit worksheet for each tax credit claimed.
Nonresidents and Safe Harbor Residents only: Personal credits included on Form 1040ME, Schedule A, lines 1, 2, 3, 4, 5, 10, 11, 12, 13, 14
and 20 are limited to the Maine residency period or prorated based on the ratio of Maine income to total income. Tax credits included on Form
1040ME, Schedule A, lines 15 through 20 may be claimed in their entirety, up to the Maine tax liability. Carryover provisions may apply.
SECTION 1 - REFUNDABLE CREDITS:
Line 7. Refundable Dirigo Business Incentives Tax Credit. A certified
business with qualified business activities in the State that invests in
eligible business property or qualified employee training programs may
qualify for this credit. Enclose worksheet(s). 36 M.R.S. §5219-AAA.

Line 1. Refundable portion of the Dependent Exemption Tax Credit.
For Maine residents and part-year residents only. Enter the amount
from line 11, or line 12, of the Dependent Exemption Tax Credit Worksheet,
whichever applies. CAUTION: Your credit may be limited if the amount
on Form 1040ME, line 16 is more than $100,000 if single; $125,000 if
head of household; $150,000 if married filing jointly or surviving spouse;
or $75,000 if married filing separately; OR if you are a part-year resident.
Enclose worksheet. 36 M.R.S. § 5219-SS.

Line 8. Other Refundable Tax Credits. See line 6 of Form 1040ME,
Schedule A, Lines 8 and 20, Other Tax Credits Worksheet for Tax Year
2025 at maine.gov/revenue/tax-return-forms that lists the tax credits that
may be entered on this line. Enclose applicable worksheet(s).

Special instructions for lines 1 and 10. If you have one or more
qualifying children and/or dependents for whom you are eligible to claim
the federal child tax credit or credit for other dependents under Internal
Revenue Code, Section 24, but are not otherwise required to file a
federal income tax return, you may be able to claim the Maine dependent
exemption tax credit. To determine if you can claim the Maine credit, see
“Who Qualifies as Your Dependent” in the federal Form 1040 instructions,
complete a pro forma federal Form 1040 and federal Form 1040, Schedule
8812, and enclose with your completed Form 1040ME, Schedule A, and
the Dependent Exemption Tax Credit Worksheet. The federal forms and
instructions are available at irs.gov.

SECTION
SECTION22- -NONREFUNDABLE
NONREFUNDABLECREDITS:
CREDITS:
Line 10. Nonrefundable Dependent Exemption Tax Credit. For
nonresidents only. See the instructions for line 1 above. Enter the
amount from line 12 of the Dependent Exemption Tax Credit Worksheet.
Enclose worksheet. 36 M.R.S. § 5219-SS.
Line 11. Nonrefundable portion of the Child Care Credit. Enter the
amount from line 6, or line 6a, of the worksheet for Child Care Credit.
Enclose worksheet. 36 M.R.S. § 5218.
Line 12. Nonrefundable portion of the Adult Dependent Care Credit.
Enter the amount from line 8, or line 8a, of the worksheet for Adult
Dependent Care Credit. Enclose worksheet. 36 M.R.S. § 5218-A.

Line 2. Refundable portion of the Child Care Credit. For Maine
residents and part-year residents only. Up to $500 of your Child
Care Credit is refundable. Enter the amount from line 5, or line 5a, of the
worksheet for Child Care Credit. Enclose worksheet. 36 M.R.S. § 5218.

Line 13. Nonrefundable Earned Income Tax Credit. For nonresidents
only. See the instructions for line 4 above. Enter the amount from line
4 of the worksheet for Earned Income Tax Credit. Enclose worksheet.
36 M.R.S. § 5219-S.

Line 3. Refundable portion of the Adult Dependent Care Credit. Up
to $500 of your credit may be refundable. Enter the amount from line 7,
or line 7a, of the worksheet for Adult Dependent Care Credit. Enclose
worksheet. 36 M.R.S. § 5218-A.

Line 14. Credit for Income Tax Paid to Other Jurisdictions. Enter the
amount from line 5 of the worksheet for Credit for Income Tax Paid to
Other Jurisdictions. Enclose worksheet(s). 36 M.R.S. § 5217-A.

Line 4. Refundable Earned Income Tax Credit. For Maine residents
and part-year residents only. Your Maine earned income tax credit is
refundable. Enter the amount from line 2, 3, or 4 of the worksheet for
Earned Income Tax Credit, whichever is applicable. 36 M.R.S. § 5219-S.

Line 15. Maine Seed Capital Credit. If you invested in a qualified
Maine business of which you are not a principal owner, you may qualify
for a credit through the Finance Authority of Maine. Enclose worksheet.
36 M.R.S. § 5216-B.

Taxpayers at least age 18: If you or your spouse (if married filing a
joint return) was at least age 18 as of the last day of the tax year, had
no qualifying child(ren) during the tax year, and would have otherwise
qualified for the federal earned income credit (EIC), you may be able to
claim the Maine earned income tax credit even if you were not eligible
to claim the federal credit.

Line 16. Research Expense Tax Credit. If