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Maine Free Printable 22_1040me_book_gen_instruc.indd for 2023 Maine Form 1040ME Instructions

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Form 1040ME Instructions
22_1040me_book_gen_instruc.indd

2022 MAINE Resident, Nonresident, or Part-year Resident Individual Income Tax Booklet Form 1040ME Maine FastFile Electronic filing and payment services For more information, see www.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 Visit www.maine.gov/revenue to obtain the latest tax updates, view frequently asked questions (FAQs), pay your tax, or email tax-related questions. To download or request forms or other information: Visit www.maine.gov/revenue/tax-return-forms or call (207) 6247894 - Every day 24 Hours. TTY (for persons who are hard of hearing): 711 - Weekdays 9:00 a.m.- 12:00 p.m. Income Tax Assistance: (207) 626-8475 - Weekdays 9:00 a.m.- 12:00 p.m. Get refund status: Visit www.maine.gov/revenue or call (207) 624-9784 - Weekdays 9:00 a.m.- 12:00 p.m. Schedule PTFC/STFC questions: (207) 624-9784 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. Report tax violations: (207) 624-9600 - Call this number or send an email to [email protected] to report possible tax violations including failure to file tax returns, failure to report all income and failure to register for tax filing. Federal income tax information and forms: Call the Internal Revenue Service at (800) 829-1040 or visit www.irs.gov. Form 1040ME due date: Tuesday, April 18, 2023 Printed Under Appropriation 010 18F 0002.07 MAINE REVENUE SERVICES P.O. BOX 1060 AUGUSTA, ME 04332-1060 IMPORTANT CHANGES for 2022 Employer support for volunteer firefighters and volunteer municipal emergency medical services persons tax credit. 36 M.R.S. § 5217F; L.D. 731; P.L. 2021, c. 731, § 5. For tax years beginning on or after January 1, 2022, an employer who permits employees who are volunteer firefighters or volunteer municipal emergency medical services persons to be absent from work for firefighting or emergency response activities without a reduction in pay is eligible for an income tax credit. The credit is equal to the compensation that is paid to the employee at the employee's regular rate of pay while the employee is away from work due to firefighting or emergency response responsibilities during the tax year. The credit may not exceed the tax liability of the taxpayer. COVID pandemic relief payment income subtraction modification. P.L. 2021, c. 635, Pt. L, § 4. For tax years beginning on or after January 1, 2022 but before January 1, 2024, the amount of COVID pandemic relief payment received is deductible in calculating Maine taxable income, to the extent the payment is included in federal adjusted gross income. Maine space corporation bond interest. 5 M.R.S. § 13207(2)(B); L.D. 1923; P.L. 2021, c. 631. Certain bonds issued by the Maine Space Corporation are, together with interest on and income from the bonds, exempt from all taxes, including the Maine income tax. Pension income deduction. 36 M.R.S. § 5122(2)(M-2); L.D. 1995; P.L. 2021, c. 635. Pt. DDD. The pension income deduction for nonmilitary retirement plan benefits is increased from $10,000 to $25,000 for tax years beginning in 2022; $30,000 for tax years beginning in 2023; and $35,000 for tax years beginning on or after January 1, 2024. Benefits received under a military retirement plan, including survivor benefits, continue to be fully exempt from Maine income tax. Earned income tax credit. 36 M.R.S. §5219-S; L.D. 1995; P.L. 2021, c. 635, Pt. E; L.D. 2041; P.L. 2021, c. 759, Pt. A, § 1. For tax years beginning on or after January 1, 2022, the Maine earned income tax credit is increased from 20% to 25% of the federal earned income tax credit (50% for eligible individuals who do not have a qualifying child). Credit for rehabilitation of historic properties after 2007 - certified qualified rehabilitation expenditures. 36 M.R.S. § 5219-BB(1)(C); L.D. 201; P.L. 2021 c. 671. The law extends the sunset date for making determinations on the eligibility of structures for the credit for rehabilitation of historic properties by five years. The definition of "certified qualified rehabilitation expenditure" is amended from December 31, 2025 to December 31, 2030, the date by which the United States Department of the Interior, National Park Service or the Maine Historic Preservation Commission must determine that a proposed rehabilitation of a structure meets the required standards for rehabilitation. FAME nonprofit student loan repayment program income subtraction modification. 36 M.R.S. § 5122(2)(XX); L.D. 1995; P.L. 2021, c. 635, Pt. G. For tax years beginning on or after January 1, 2022, 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. Educational opportunity tax credit income subtraction modification. 36 M.R.S. § 5122(2)(FF); L.D. 1995; P.L. 2021, c. 635, Pt. H, §§ 16 and 18. For tax years beginning on or after January 1, 2022, the income subtraction modification equal to eligible student loan payments made by employers on behalf of qualified employees pursuant to 36 M.R.S. § 5217-D, is repealed. Property tax fairness credit. 36 M.R.S. §§ 5219-KK(1)(A-1) and 5219-KK(2-D); L.D. 221; P.L. 2021, c. 398, Pt. H, § 8; L.D. 1733; P.L. 2021, c. 483, Pt. AA, § 1; L.D. 1995; P.L. 2021, c. 635, Pt. F. For tax years beginning on or after January 1, 2022, the property tax fairness credit is increased to 100% of the benefit base that is greater than 4% (previously 5%) of the individual's income, up to $1,000 ($1,500 for individuals 65 years of age or older). Also, beginning in 2022, property tax amounts paid on the taxpayer's behalf during the tax year by the State to a municipality under the Property Tax Deferral Program may be included in the benefit base for purposes of calculating the property tax fairness credit. Educational opportunity tax credit repealed. 36 M.R.S. § 5217D(6); L.D. 1995; P.L. 2021, c. 635, Pt. H, §§ 13 and 14. The credit for educational opportunity, including any carryover of unused credit amounts from prior years, may not be claimed for tax years beginning on or after January 1, 2022. The credit, including carryover of unused credit amounts from prior years, is replaced by the student loan repayment tax credit available for tax years beginning on or after January 1, 2022, for qualified individuals. Access to justice income tax credit. 36 M.R.S. § 5219-ZZ; L.D. 978; P.L. 2021, c. 473. The access to justice income tax credit is enacted to encourage attorneys to practice law in underserved areas of Maine. The court may certify up to five eligible attorneys each year from 2022 through 2027. The credit, up to $6,000, may be claimed in the first year that the eligible attorney meets the conditions of eligibility for at least six months and in each of the four subsequent years. The credit may not reduce the tax otherwise due to less than zero. The court must decertify individuals who cease to meet the conditions of eligibility. Student loan repayment tax credit. 36 M.R.S. § 5217-E; L.D. 1995; P.L. 2021, c. 635, Pt. H, § 15. For tax years beginning on or after January 1, 2022, qualified individuals may claim the refundable student loan repayment tax credit (SLRTC). The SLRTC replaces the repealed educational opportunity tax credit (EOTC). The new credit is equal to the amount of eligible student loan payments made directly by the taxpayer to a relevant lender during the tax year, plus the amount of unused EOTC amounts carried forward from prior tax years, up to $2,500. Except, up to $3,500 may be claimed for either tax year beginning in 2022 or 2023, whichever year is elected, by qualified individuals who received an EOTC credit during any tax year beginning in 2019, 2020, or 2021 that was based on loans acquired to obtain a bachelor's degree or associates degree in science, technology, engineering, or mathematics. Unused EOTC amounts that are allowed to be carried forward from prior tax years, for purposes of the SLRTC, may be claimed only for tax years beginning before January 1, 2027. A $25,000 lifetime cap applies to the SLRTC for each qualified individual. The one time $1,000 maximum credit increase allowable during either tax year beginning in 2022 or 2023 does not apply against the $25,000 lifetime cap. Voluntary income tax checkoff for the Emergency Food Assistance Program Fund. 36 M.R.S. § § 5283-A and 5293; L.D. 1046; P.L. 2021, c. 437. For tax years beginning on or after January 1, 2022, a new voluntary contribution check-off is added to the Maine individual income tax form, Schedule CP, for the Emergency Food Assistance Program Fund. The purpose of this fund is to support the emergency food assistance program administered by the Department of Agriculture, Conservation and Forestry. See the complete 2022 Summary of Tax Law Changes available at www.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 18, 2023, 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 12) 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 Rule 806. Note: 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. 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. 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 www.maine.gov/revenue/faq. For additional answers to frequently asked questions (FAQs), visit www.maine.gov/revenue/faq. What is my Residence Status? To determine your residency status for 2022, 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 www.maine.gov/revenue/tax-return-forms or call the forms line at (207) 624-7894. • Full-year Resident: 1) Maine was my domicile for the entire year of 2022; 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 2022, 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 2022 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 2022 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 www.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. For pass-through entities only: • Nonresident: I was not a resident or part-year resident in 2022, but I do have Maine-source income. Follow the federal filing requirements for filing status, federal adjusted gross income, and standard or itemized deductions. • If this is a composite filing, check the Composite Return box below line 7. A composite return may be filed by a pass-through entity on behalf of nonresident owners. You must complete and enclose Schedule 1040C-ME and provide supporting documentation with your composite return. For more information on composite filing and forms, visit www.maine.gov/revenue. NOTE: Safe harbor residents, part-year residents, and nonresidents, file Form 1040ME and Schedule NR or NRH. Schedules NR and NRH are available at www.maine.gov/revenue/taxreturn-forms or call the forms line at (207) 624-7894. • If you are reporting partnership audit adjustments on Schedule 1040PA-ME, check the Partnership Audit box below line 7. You must complete and attach Schedule 1040PA-ME, Schedule 1040C-ME if necessary, and provide supporting documentation with your return. See the instructions for Schedule 1040PA-ME. For additional information on determining Maine residency or if you are in the military, see the Maine Revenue Services Guidance to Residency Status and Guidance to Residency Safe Harbors available at www. maine.gov/revenue/tax-return-forms (select Income Tax Guidance Documents) or call the forms line at (207) 624-7894. 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. 3 Line 13. Personal exemptions. If your Filing Status on lines 3 through 7 is: • Single; • Head of household; • Qualifying widow(er); or • Married filing separately* *If married filing separately AND you would claim a federal personal exemption for your spouse, if not for the temporary suspension of the federal personal exemption deduction • Married filing jointly** Enter on line 13: Line 14. Enter the federal adjusted gross income shown on your federal Form 1040, line 11 or Form 1040-SR, line 11. 1 Line 15a. Income Addition Modifications. Complete Maine Schedule 1A to calculate your entry for this line. 2 Line 15b. Income Subtraction Modifications. Complete Maine Schedule 1S to calculate your entry for this line. Part-year residents, Nonresidents and Safe Harbor residents, see Schedule NR or NRH. 2 **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 Line 17. Deduction. CAUTION: If the amount on Form 1040ME, line 16 is more than $85,850 if single or married filing separately; $128,750 if head of household; or $171,700 if married filing jointly or qualifying widow(er), you must complete the Worksheet for Standard/Itemized Deductions below to calculate your deduction amount for line 17. If your income does not exceed the amount for your filing status and you use the standard deduction on your federal return, enter the amount from federal Form 1040, line 12 or Form 1040-SR, line 12 for your filing status. Line 13a. Enter the number of qualifying children and dependents for whom you are able to claim the federal child tax credit or the credit for other dependents (from federal Form 1040 or Form 1040-SR, “Dependents,” columns (1) through (4)). Also see Form 1040ME, Schedule A, line 8. 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. 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. 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 2022 is greater than $85,850 if single or married filing separately; $128,750 if head of household; or $171,700 if married filing jointly or qualifying widow(er). 1. Enter your 2022 Maine adjusted gross income (Form 1040ME, line 16) ................................................................. 1. ____________________ 2. Enter $85,850 if single or married filing separately; $128,750 if head of household; or .......................................... 2. $171,700 if married filing jointly or qualifying widow(er). ____________________ 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 widow(er). ____________________ 5. Divide line 3 by line 4. If one or more, enter 1.0000. ................................................................................................ 5. ___ . ___ ___ ___ ___ 6. Enter your 2022 standard deduction. (See federal Form 1040, line 12 or Form 1040-SR, line 12) or your 2022 Maine itemized deductions from Form 1040ME, Schedule 2, line 7, whichever applies ................................ 6. ____________________ 7. Multiply line 6 by line 5 ............................................................................................................................................. 7. ____________________ 8. 2022 Maine itemized deductions or standard deduction. Subtract line 7 from line 6. Enter this amount on Form 1040ME, line 17 ......................................................................................................................................... 8. ____________________ jointly or qualifying widow(er); or $171,700 if married filing 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 $4,450. CAUTION: If the amount on Form 1040ME, line 16 is more than $286,200 if filing single; $314,800 if head of household; $343,400 if married filing- 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 2022 is greater than $286,200 if single; $314,800 if head of household; $343,400 if married filing jointly or qualifying widow(er); or $171,700 if married filing separately. 1. Enter your 2022 Maine adjusted gross income (Form 1040ME, line 16) ................................................................. 1. 2. Enter $286,200 if single; $314,800 if head of household; $343,400 if married filing jointly or qualifying widow(er), or $171,700 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 widow(er); $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 2022 personal exemption deduction amount (multiply the amount on Form 1040ME, line 13 by $4,450) ..................................................................................................................................................................... 6. ____________________ 7. Multiply line 6 by line 5 ............................................................................................................................................. 7. ____________________ 8. 2022 Maine personal exemption deduction amount. Subtract line 7 from line 6. Enter this amount on Form 1040ME, line 18 .............................................................................................................................................. 8. ____________________ 4 ____________________ 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 2022 not already reported on a sales tax return. The tax rate on casual rentals occurring during 2022 is 9%. Also enter on this line the additional tax due resulting from a partnership audit from Schedule 1040PA-ME, line 6. Note: To report sales tax greater than $2,000, you must file a sales/ use tax return at https://revenue.maine.gov. If you do not have internet access, call (207) 624-9693 for assistance. Line 21. Note: Schedules NR and NRH are available at www.maine. gov/revenue/tax-return-forms or call the forms line at (207) 624-7894. Line 33b. Refunds of $1.00 or more will be issued to you. Line 24. Subtract line 23 from line 22. Nonresidents and Safe Harbor Residents only: Note: Unused business credits claimed on Schedule A, lines 13 through 20 may be eligible to be carried over to future tax years. See the instructions for Maine Schedule A. Lines 33c-33e. To comply with banking rules, you must check the box to the left of line 33d if your refund is going to an account outside the United States. If you check the box, we will mail you a paper check. 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 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 33c. Routing Number (“RTN”) must be 9 digits. Line 25b. Enter the total amount of Maine estimated tax paid for tax year 2022. Also include on this line extension payments and amounts withheld for 2022 on the sale of real estate in Maine. Enclose a copy of Form REW-1-1040 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 33d. 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 34b. 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 www.maine.gov/revenue/tax-returnforms or call the forms line at (207) 624-7894. Line 25d. For Maine residents and part-year residents only. Enter the amount from Schedule PTFC/STFC, line 12. Line 34c. Total Amount Due. Do not send cash. If you owe less than $1.00, do not pay it. Remit your payment using Maine EZ Pay at https:// portal.maine.gov/ezpay 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 13 or line 13a, 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 Maine Revenue Services to call or accept information from another person to discuss your 2022 Maine individual income tax return. Choose any 5-digit PIN which will be used to ensure MRS employees speak with only the individual you have designated. This authorization will automatically end on April 17, 2024. 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 2022 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). 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. For more information, call (207) 6214300 or email [email protected] Injured or Innocent Spouse. Check the box below your signature(s) if you are an injured or innocent spouse for a Maine Revenue Services income tax debt only. (See federal Form 8379 or Form 8857 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, call (207) 624-9595 or email [email protected] 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 www.maine.gov/revenue/taxes/sales-use-service-provider-tax or call (207) 624-9693. 5 SCHEDULE 1A — INCOME ADDITION MODIFICATIONS - See page 19 For more information on Maine income modifications, visit www.maine.gov/revenue/tax-return-forms. Property that is transferred out of state or disposed of within 12 months after being placed in service in Maine is not eligible for the Maine capital investment credit. Amounts entered on this line are eligible for the recapture subtraction modification on Schedule 1S, line 9 in future years. Also include the taxpayer’s distributive share of addition modification items from partnerships, S corporations, and other pass-through entities. Line 1. Enter the income from municipal and state bonds, other than Maine, that is not included in your federal adjusted gross income (i.e., enter bond interest from City of New York but not Portland, Maine). 36 M.R.S. § 5122(1)(A). Line 6. 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. 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 www.maine.gov/revenue/tax-return-forms (select Income Tax Guidance Documents). 36 M.R.S. § § 5122(1)(H) and 5122(1)(M). Line 7. 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. Line 3. Enter 2022 Maine Public Employees Retirement System contributions. See your Maine state or municipal W-2 form. 36 M.R.S. § 5122(1)(G). Lines 4 and 5. Bonus depreciation add-back. Lines 4 and 5 relate 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 these lines, complete a pro forma federal Form 4562 as if no bonus depreciation was claimed on the property placed in service in tax year 2022. Line 8. 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 return. In like manner, any loss, deduction, or expense of a passthrough entity financial institution reflected in an owner’s federal income is not permitted in calculating the Maine taxable income of the owner. 36 M.R.S. § 5122(1)(K). 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. If any of the property placed in service in tax year 2022 is located in Maine and the Maine capital investment credit is claimed, the total addition modification must be divided between lines 4 and 5. Otherwise, the entire addition must be entered on line 4. Enclose copies of the original and pro forma federal Forms 4562, along with the add-back calculation, with the return. For more information, go to www.maine.gov/revenue/tax-return-forms (select Income Tax Guidance Documents). Also, refer to the instructions for Schedule 1S, line 9 below. Line 9. 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). Line 4. Bonus depreciation add-back: Enter on this line the total bonus depreciation add-back calculated above less the amount of Maine capital investment credit add-back from line 5. Amounts entered on this line are eligible for the recapture subtraction modification on Schedule 1S, line 9 in future years. 36 M.R.S. § 5122(1)(KK)(2). Line 10. Business meals deduction add-back. The federal Consolidated Appropriations Act, 2021 temporarily removed the 50% deduction limitation on certain business meals expenses incurred after December 31, 2020. For Maine income tax purposes, business meals expenses over the 50% limitation may not be used to reduce Maine taxable income. Enter on this line the difference between the business meals deduction with no limitation used in calculating business income on your federal return and the business meals deduction calculated using the 50% limitation. 36 M.R.S. § 5122(1)(OO). Line 5. Maine capital investment credit bonus depreciation addback: The Maine capital investment credit is available to businesses that place depreciable property in service in Maine during the taxable year. 36 M.R.S. § 5122(1)(KK)(1). Enter on this line the portion of the bonus depreciation add-back calculated above relating to property for which the Maine capital investment credit is claimed, based on original basis of property placed in service in tax year 2022. For example, if you purchased $400,000 of eligible property and $100,000 of that property is located in Maine and included in the credit base, the portion of the add-back to include on this line is $100,000/$400,000 or 25% of the total bonus depreciation add-back calculated above. Line 11. Other. This line is reserved for future use, if needed. Do not enter an amount on this line, unless specifically instructed to do so. 6 SCHEDULE 1S — INCOME SUBTRACTION MODIFICATIONS - See pages 21 and 22 For more information on Maine income modifications, visit www.maine.gov/revenue/tax-return-forms. 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 12. Line 8. 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. Line 9. 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 §5122(2)(X). For more information and examples, visit www.maine.gov/ revenue/tax-return-forms (select Income Tax Guidance Documents). 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). 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). Line 10. Enter the amount of medical cannabis business expenses related to carrying on a trade or business as a registered caregiver or a registered dispensary allowable for Maine tax purposes to the extent the expenses were not allowed to be deducted for federal tax purposes 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 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 4. Enter the pension income deduction from the Worksheet for Pension Income Deduction, line 7. Include copies of your 1099 forms to verify the subtraction. 36 M.R.S. § 5122(2)(M-2). Line 11. 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 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. 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). 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. 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. Military pay is compensation for: (1) active duty service in the active components of the United States Army, Navy, Air Force, Marines or Coast Guard 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, or Coast Guard 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 overseas deployment and excludes standard duty activity, such as training and administrative activities. 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 NOL’s, go to www.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). 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). Line 12. 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). 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, or Coast Guard 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). Line 13. 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. 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 14. 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 $1,000 (or, if greater, 100 times the state minimum hourly wage) 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 7 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). 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 (MSHA). A copy of the MSHA certificate must be attached to the return. 36 M.R.S. § 5122(2)(Z). Line 15. 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 24. Maine seed capital credit refundable distributions. Enter the refundable portion of the Maine seed capital investment tax credit allowed under 36 M.R.S. § 5216-B to the extent included in federal adjusted gross income. Private venture capital funds may claim the seed capital investment tax credit and the credit is refundable to those entities. The refundable portion of the credit is excluded from Maine taxable income. 36 M.R.S. § 5122(2)(JJ). Line 16. Earnings on funds held in an ABLE savings account. Enter on this line the amount equal to any ABLE savings account income, such as interest, that is included in federal adjusted gross income. 36 M.R.S. § 5122(2)(QQ). Line 25. 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 17. 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. Line 18. Amount of the reduction in your salaries and wages expense deduction. 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). 1) Enter the gain recognized on the sale of eligible timberlands included in federal adjusted gross income ...............................................................$__________ 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. ..............___________ Line 19. Earnings from fishing operations. 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. If the number of years eligible timberlands were held by the taxpayer since January 1, 2005 is: Line 20. Northern Maine Transmission Corporation investment income. The Northern Maine Transmission Corporation is a public instrumentality of the State. All bonds, notes, or other evidences of indebtedness issued on behalf of the Northern Maine Transmission Corporation are issued by a political subdivision or a body corporate and politic of the State and for an essential public and governmental purpose. Those bonds, notes, or other evidences of indebtedness, the interest on them and the income from them, including any profit on their sale, and all activities of the corporation and fees, charges, funds, revenue, income, and other money of the corporation, whether or not pledged or available to pay or secure the payment of those bonds, notes, or other evidences of indebtedness or interest on them, are exempt from Maine individual income tax. Enter on this line the amount of income from investments in the Northern Maine Transmission Corporation to the extent included in federal adjusted gross income. 10 M.R.S. § 9205. At least 10 11 12 13 14 15 16 17 3) But less than 11 12 13 14 15 16 17 18 Enter .0667 .1333 .2 .2667 .3333 .4 .4667 .5333 Multiply line 1 by line 2. Enter result on Schedule 1S, line 25. .......................................$___________ Line 26. New markets capital investment credit. Enter the amount of income recognized from the new markets capital investment credit to the extent included in federal adjusted gross income. 36 M.R.S. § 5122(2)(KK). Line 21. Income from bonds issued by the Maine Space Corporation and the Maine Waste Management and Recycling Program. Enter on this line interest income and capital gains from the sale of bonds issued relative to the Maine Space Corporation and the Maine Waste Management and Recycling Program to the extent included in federal adjusted gross income. 5 M.R.S. § 13207(2)(B) and 38 M.R.S. § 2218. Line 27. 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 22. 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 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). Line 28. Other. See the 2022 Worksheet for Form 1040ME, Schedule 1S, line 28, Income Subtraction Modifications - Other Subtractions available at www.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 23. 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 8 SCHEDULE A — MAINE TAX ADJUSTMENTS - See page 25 Tax Credit Worksheets Required. For more information on all tax credits and related worksheets, visit www.maine.gov/revenue/tax-return-forms (select Worksheets for Tax Credits) or call (207) 626-8475. You must complete and attach the applicable tax credit worksheet for each tax credit claimed. SECTION 1 - REFUNDABLE CREDITS: Line 1. 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. Line 11. Nonrefundable Earned Income Tax Credit. For nonresidents only. See the instructions for line 3 above. Enter the amount from line 4 of the worksheet for Earned Income Tax Credit. Enclose worksheet. Line 12. 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). Line 2. 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. Line 13. 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. Line 3. 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. 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. Taxpayers filing with an IRS issued individual taxpayer identification number (ITIN): If you or your spouse (if married filing a joint return) filed a federal income tax return using an ITIN assigned by the IRS on or before the due date for filing the return, and would have otherwise qualified for the federal EIC, you may be able to claim the Maine earned income tax credit even if you were not eligible to claim the federal credit. To determine if you can claim the Maine earned income tax credit, see the Earned Income Tax Credit Worksheet available at www.maine.gov/ revenue/tax-return-forms. Enclose worksheet. Line 14. Maine Capital Investment Credit. If your business placed depreciable property in service in Maine for which federal bonus depreciation was claimed, you may qualify for this credit. Enclose worksheet. Line 15. Research Expense Tax Credit. If your business invested in research, you may qualify for this credit for your portion of the expenses. Enclose worksheet. Line 16. Carryforward of Certain Credits. Enter on this line unused portions of the following credits carried forward from prior years: • Super Credit for Substantially Increased Research and Development • Maine Minimum Tax Credit • Employer credits for payment of employee expenses (long-term care insurance, day care expenses) • “Step 4” Quality Child Care Investment Tax Credit. Enclose worksheet(s) or supporting documentation for each credit claimed. Line 17. Pine Tree Development Zone Credits. If you expanded your business in Maine, you may qualify for this credit certified through the Department of Economic and Community Development. Enclose worksheet. Line 4. Student Loan Repayment Tax Credit. Graduates of accredited colleges and universities who have obtained an associate, bachelor’s, or graduate degree may qualify for a refundable credit based on certain loan payments made in 2022. Enclose worksheet. Line 18. Employer Credit for Family and Medical Leave. Enter the amount claimed for the federal credit for employer-paid family and medical leave under Internal Revenue Code, Section 45S as a result of wages paid to employees based in Maine during the taxable year. Enclose the Maine credit worksheet. Line 5. Rehabilitation of historic properties after 2007. If you have qualified rehabilitation expenditures associated with a historic structure located in Maine that is placed in service during the tax year, you may qualify for this credit. Enclose worksheet. Line 19. Employer Credit for Volunteer Firefighters and Volunteer Municipal Emergency Medical Services Persons. An employer that permits employees who are volunteer firefighters or volunteer municipal emergency medical services persons to be absent from work for firefighting or emergency response activities without a reduction in pay may qualify for this credit. Enclose worksheet. Line 6. Other Refundable Tax Credits. See the Form 1040ME, Schedule A, Lines 6 and 20, Other Tax Credits Worksheet for Tax Year 2022, line 5 at www.maine.gov/revenue/tax-return-forms that lists the tax credits that may be entered on this line. Enclose applicable worksheet(s). SECTION 2 - NONREFUNDABLE CREDITS: Line 20. Other Nonrefundable Tax Credits. See the Form 1040ME, Schedule A, Lines 6 and 20, Other Tax Credits Worksheet for Tax Year 2022, line 16 at www.maine.gov/revenue/tax-return-forms that lists the tax credits that may be entered on this line. Enclose applicable worksheet(s). Line 8. Dependent Exemption Tax Credit. Multiply the amount shown on Form 1040ME, line 13a by $300. CAUTION: Your credit may be limited if the amount on Form 1040ME, line 16 is more than $200,000 ($400,000 if married filing jointly) OR if you are a nonresident or part-year resident. Complete the Worksheet for Dependent Exemption Tax Credit. Enclose worksheet. Nonresidents and Safe Harbor Residents only: Personal credits (Form 1040ME, Schedule A, lines 1, 2, 3, 4, 8, 9, 10, 11, and 12) are limited to the Maine residency period or prorated based on the ratio of Maine income to total income. Business tax credits on Form 1040ME, Schedule A, lines 13 through 20 may be claimed in their entirety, up to the Maine tax liability. Carryover provisions may apply. Line 9. 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. Line 10. 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. 9 PROPERTY TAX FAIRNESS CREDIT (Form 1040ME, line 25d) You may qualify for a refundable Property Tax Fairness Credit up to $1,000 ($1,500 if you are 65 years of age or older) if you meet all of the following: • You were a Maine resident during any part of the tax year; • You owned or rented a home in Maine during any part of the tax year and lived in that home as your principal residence during the year; • Your total income during 2022 was less than the amount shown in the table below for your filing status and the number of qualifying children and dependents on Form 1040ME, line 13a: If your Filing Status is: Form 1040ME, line 13a is: AND · 0 1 OR OR more than 1 Your income must be less than: Single $55,000 $55,000 $55,000 Head of Household $70,000 $70,000 $86,250 Married filing Jointly or Qualifying Widow(er) $70,000 $86,250 $86,250 • You paid property tax on your home (principal residence) in Maine during the tax year that is greater than 4% of your total income or you paid rent on your home (principal residence) in Maine during the tax year that is greater than 26.67% of your total income. Note: that the amount of property tax or rent you can include may be limited. See line 7 on Schedule PTFC/STFC. • Your filing status is single, head of household, married filing jointly, or qualifying widow(er). Note: You cannot take the Property Tax Fairness Credit if your filing status is married filing separately. See Schedule PTFC/STFC for more information. SALES TAX FAIRNESS CREDIT (Form 1040ME, line 25e) You may qualify for a refundable Sales Tax Fairness Credit up to $240, depending on the number of qualifying children and dependents on Form 1040ME, line 13a, if you meet all of the following: • You were a Maine resident during any part of the tax year; • Your total income during 2022 was not more than $27,850 if filing single; $44,050 if filing head of household; or, $54,700 if married filing jointly; • Your filing status is single, head of household, married filing jointly, or qualifying widow(er). Note: You cannot take the Sales Tax Fairness Credit if your filing status is married filing separately or if you are claimed as a dependent on another person’s return. See Schedule PTFC/STFC for more information. 2022 Tax Year Quick Facts ● Sales Tax Fairness Credit maximum income limitation: $27,850 single; $44,050 head of household; or, $54,700 married filing jointly or qualifying widow(er). See Schedule PTFC/STFC for more information. Married taxpayers filing separate tax returns do not qualify for the credit. ● Maine personal exemption amount: $4,450. ● Maine standard deduction base amounts: • $12,950 single or married filing separately; • $19,400 head of household; • $25,900 married filing jointly or qualifying widow(er). ● Child and dependent care credit is refundable for Maine residents and part-year residents, up to $500. ● Maine itemized deductions are limited to $31,150, except medical expenses are not subject to the limit. • Use Form 1040ME, Schedule 2 to claim Maine itemized deductions. ● Adult dependent care credit is refundable for Maine residents and partyear residents, up to $500. ● To report income that is taxable in Maine but not by the federal government (income addition modifications), use Form 1040ME, Schedule 1A. To report income that is taxable by the federal government but not in Maine (income subtraction modifications), use Form 1040ME, Schedule 1S. ● Earned income tax credit is refundable for Maine residents and part-year residents. ● Property Tax Fairness Credit maximum income limitation: $55,000 if single; $86,250 if head of household or married filing jointly or qualifying widow(er). See Schedule PTFC/STFC for more information. Married taxpayers filing separate tax returns do not qualify for the credit. ● Student loan repayment tax credit is available for qualified individuals who have obtained an associate, bachelor's, or graduate degree from an accredited Maine or non-Maine college after 2007 and have made eligible education loan payments. ● Dependent exemption tax credit, up to $300 for each qualifying child or dependent, subject to phaseout. 10 2022 MAINE INCOME TAX TABLE If Line 19 Form 1040ME is: At Least But Less Than If Line 19 Form 1040ME is: And Your Filing Status is: Single or Married Head MarriedFiling of Filing Jointly* HouseSeparately hold At Least But Less Than If Line 19 Form 1040ME is: Single or Married Head MarriedFiling of Filing Jointly* HouseSeparately hold At Least But Less Than Your Tax is: Your Tax is: 0 0 100 200 300 400 500 600 700 800 900 1,000 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 2,000 2,100 2,200 2,300 2,400 2,500 2,600 2,700 2,800 2,900 3,000 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000 4,000 4,100 4,200 4,300 4,400 4,500 4,600 4,700 4,800 4,900 5,000 5,000 5,100 5,200 5,300 5,400 5,500 5,600 5,700 5,800 5,900 6,000 6,000 6,100 6,200 6,300 6,400 6,500 6,600 6,700 6,800 6,900 And Your Filing Status is: 100 200 300 400 500 600 700 800 900 1,000 3 9 15 20 26 32 38 44 49 55 3 9 15 20 26 32 38 44 49 55 3 9 15 20 26 32 38 44 49 55 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 61 67 73 78 84 90 96 102 107 113 61 67 73 78 84 90 96 102 107 113 61 67 73 78 84 90 96 102 107 113 2,100 2,200 2,300 2,400 2,500 2,600 2,700 2,800 2,900 3,000 119 125 131 136 142 148 154 160 165 171 119 125 131 136 142 148 154 160 165 171 119 125 131 136 142 148 154 160 165 171 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000 177 183 189 194 200 206 212 218 223 229 177 183 189 194 200 206 212 218 223 229 177 183 189 194 200 206 212 218 223 229 4,100 4,200 4,300 4,400 4,500 4,600 4,700 4,800 4,900 5,000 235 241 247 252 258 264 270 276 281 287 235 241 247 252 258 264 270 276 281 287 235 241 247 252 258 264 270 276 281 287 5,100 5,200 5,300 5,400 5,500 5,600 5,700 5,800 5,900 6,000 293 299 305 310 316 322 328 334 339 345 293 299 305 310 316 322 328 334 339 345 293 299 305 310 316 322 328 334 339 345 6,100 6,200 6,300 6,400 6,500 6,600 6,700 6,800 6,900 7,000 351 357 363 368 374 380 386 392 397 403 351 357 363 368 374 380 38
Extracted from PDF file 2022-maine-income-tax-instructions.pdf, last modified January 2023

More about the Maine Income Tax Instructions Individual Income Tax TY 2022

This booklet contains all the information you need to fill out and file [[Form 1040ME]] for your individual income taxes.

We last updated the Form 1040ME Instructions in January 2023, so this is the latest version of Income Tax Instructions, fully updated for tax year 2022. You can download or print current or past-year PDFs of Income Tax Instructions directly from TaxFormFinder. You can print other Maine tax forms here.


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Other Maine Individual Income Tax Forms:

TaxFormFinder has an additional 61 Maine income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Schedule PTFC Schedule PTFC Property Tax Fairness Credit
W-4ME Employee’s Maine Withholding Allowance Certificate
Form 1040ES-ME Vouchers and Instructions for Estimated Tax Payments
Schedule 1S Income Modification Subtractions
REW-5 Request for Exemption or Reduction in Withholding of Maine Income Tax on the Disposition of Maine Real Property

Download all ME tax forms View all 62 Maine Income Tax Forms


Form Sources:

Maine usually releases forms for the current tax year between January and April. We last updated Maine Income Tax Instructions from the Revenue Services in January 2023.

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About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of Maine Income Tax Instructions

We have a total of eight past-year versions of Income Tax Instructions in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2019 Income Tax Instructions

19_1040me_gen_instructions.indd

2018 Income Tax Instructions

18_1040me_book_dwnld.indd

2017 Income Tax Instructions

17_1040me_book_dwnld.indd

2016 Income Tax Instructions

16_1040me_book_download.indd

2015 Income Tax Instructions

15_1040me_book_download_jan2016.indd


TaxFormFinder Disclaimer:

While we do our best to keep our list of Maine Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.

** This Document Provided By TaxFormFinder.org **
Source: http://www.taxformfinder.org/maine/income-tax-instructions