×
tax forms found in
Tax Form Code
Tax Form Name

Maine Free Printable  for 2024 Maine Form 1040ME Instructions

There are only 28 days left until tax day on April 16th! eFile your return online here , or request a six-month extension here .

It appears you don't have a PDF plugin for this browser. Please use the link below to download 2023-maine-income-tax-instructions.pdf, and you can print it directly from your computer.

Form 1040ME Instructions
Income Tax Instructions

2023 MAINE Resident Individual Income Tax Booklet Form 1040ME Maine Electronic Filing 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 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 www.irs.gov. To download or request forms or other information: Visit www.maine.gov/revenue/tax-return-forms or call (207) 6247894 - Every day 24 Hours. Visit www.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): 711 - 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. Income Tax Assistance: (207) 626-8475 - Weekdays 9:00 a.m. - 12:00 p.m. MRS does not provide tax return preparation assistance over the telephone. MRS does not provide tax return preparation assistance over the telephone. Free Tax Preparation Services for Qualified Individuals: AARP Foundation Tax-Aide Program: www.aarp.org/money/taxes/aarp_taxaide, or call 888-AARPNOW (888227-7669); or Ca$h Coalition of Maine at www.cashmaine.org/free-tax-prep, or call 2-1-1. Form 1040ME due date: Wednesday, April 17, 2024 Printed Under Appropriation 010 18F 0002.07 MAINE REVENUE SERVICES P.O. BOX 1060 AUGUSTA, ME 04332-1060 IMPORTANT CHANGES for 2023 Major food processing and manufacturing facility expansion tax credit. 36 M.R.S. §§ 5219-VV(1)(B-1) and 5219-VV(8); L.D. 150; P.L. 2023, c. 173, §§ 4 and 5. Business certified under the major food processing and manufacturing facility expansion tax credit may apply to the Department of Economic and Community Development for a reduction in the base level of employment if the certified business experiences a catastrophic occurrence (a fire, flood, hurricane, windstorm, earthquake, or other similar event that is not within the control of a business to prevent.) To qualify, a business must sustain a minimum 15% loss in employment due to a catastrophic occurrence. The taxpayer must apply for the reduction within two calendar years of the catastrophic occurrence. Winter energy relief payment income subtraction modification. L.D. 3; P.L. 2023, C. 1, Pt. B, § 4. For tax years beginning on or after January 1, 2023, but before January 1, 2024, the amount of winter energy relief payment received is deductible in calculating Maine taxable income, to the extent the payment is included in federal adjusted gross income. 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 $25,000 to $30,000 for tax years beginning in 2023. Benefits received under a military retirement plan, including survivor benefits, continue to be fully exempt from Maine income tax. Estimated tax/installment due dates. 36 M.R.S. §§ 5228(1)(B1), 5228(4), 5228(5)(B) and 5228(10); L.D. 283; P.L. 2023, c. 360, Pt. B, §§ 15, 16, 17 and 18. The law is changed to: (1) replace the term "fisherman" to "person who fishes commercially;" (2) clarify that estimated tax installment payments for income taxes are due on the 15th day of the 4th, 6th, 9th, and 13th month (12th month for corporations and financial institutions) following the beginning of the taxpayer's tax year or, for farmers and persons who fish commercially, on the 15th day of the 13th month following the beginning of the tax year; and (3) clarify that the penalty for estimated tax may not be imposed with respect to farmers and persons who fish commercially that file a return and pay the full tax liability for the tax year no later than the first day of the 3rd month following the end of the tax year. Expanded cannabis business expense subtraction modification. 36 M.R.S. §§ 5122(2)(PP) AND 5200-A(2)(BB); L.D. 1063; P.L. 2023, c. 444. For tax years beginning on or after January 1, 2023, the cannabis business expense subtraction modification is extended to include expenses related to carrying on a trade or business as a manufacturing facility, as defined in Title 22, section 2422, and an adult use cannabis establishment or testing facility, as defined in Title 28-B, section 102. The deduction may be claimed for 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. Losses derived from sources on tribal land income addition modification. 36 M.R.S. § 5122(1)(PP); L.D. 585; P.L. 2021, c. 681, Pt. G, §§ 3 and 6. For tax years beginning on or after January 1, 2023, tribal members residing on tribal land and the estate of a decedent who was a tribal member residing on tribal land are required to add-back the amount of any losses derived from or connected with sources on tribal land determined in accordance with 36 M.R.S. § 5132. Voluntary checkoff for the easy enrollment health insurance program. 36 M.R.S. § 5294; L.D. 1390; P.L. 2021, c. 715, § 4. For tax years beginning on or after January 1, 2023, four check off boxes must be included on the Maine individual income tax form for taxpayers to indicate, as applicable, that (1) the taxpayer, (2) the taxpayer's spouse, and (3) dependents of the taxpayer do not have health care coverage, and to (4) authorize MRS to share certain tax information with the Maine Health Insurance Marketplace to facilitate administration of the easy enrollment health insurance program. The form must also include space for the entry of the email address, telephone number, or other preferred method of communication of the taxpayer. The State Tax Assessor must forward to the Maine Health Insurance Marketplace the information of any taxpayer who authorizes information sharing by checking the applicable box. The information and frequency of data sharing is to be established by rule (22 M.R.S. § 5412(1)). Income derived from sources on tribal land income subtraction modification. 36 M.R.S. § 5122(2)(ZZ); L.D. 585; P.L. 2021, c. 681, PT. G, §§ 4 and 6 and Revisor's Report 2021, c. 2, Pt. A § 127. For tax years beginning on or after January 1, 2023, tribal members residing on tribal land and the estate of a decedent who was a tribal member residing on tribal land may claim the income subtraction modification equal to the amount of income derived from or connected with sources on tribal land determined in accordance with 36 M.R.S. § 5132. Contributions to education savings plans income subtraction modification. 36 M.R.S. § 5122(2)(YY); L.D. 23; P.L. 2021, c. 707. For tax years beginning on or after January 1, 2023, the income subtraction modification for contributions to a qualified tuition program established under Internal Revenue Code, Section 529 is reinstated. The deduction, equal to contributions made to a qualified tuition plan up to $1,000 for each designated beneficiary, may not be claimed by taxpayers who federal adjusted gross income exceeds $100,000 if filing single or married filing separately or $200,000 if married filing jointly or head of household. Pine Tree Development Zone program; sunset. 30-A M.R.S. § 5250-J(5) and 36 M.R.S. §§ 1760(87), 2016(4), 2529(3), 5219-W(4), and 6754(1)(D); L.D. 258; P.L. 2023, c. 412, Pt. J. The law extends the sunset date of the Pine Tree Development Zone certification and benefits by one year. Businesses may not be certified for the program after December 31, 2024 and benefits will cease on December 31, 2034, including the tax credits for income tax, franchise tax, and insurance premiums tax; sales and use tax exemptions for tangible personal property and transmission/distribution of electricity; and reimbursement under the Employment Tax Increment Financing program. Property tax fairness credit. 36 M.R.S. § 5219-KK(2-E); L.D. 1986; P.L. 2021, c. 703 and L.D. 283; P.L. 2023, c. 360, Pt. B, § 14. For tax years beginning on or after January 1, 2023, resident individuals who are veterans and 100% permanently and totally disabled are allowed an additional income tax credit equal to the amount of the property tax fairness credit the individual otherwise qualifies for, effectively doubling the property tax fairness credit. The total credit may not exceed the property taxes paid and rent constituting property taxes paid by the individual and by the State on behalf of the taxpayer pursuant to the property tax deferral program during the tax year. See the complete 2023 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 17, 2024, 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. 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 www.maine.gov/revenue/faq. For answers to frequently asked questions (FAQs), visit www. maine.gov/revenue/faq. What is my Residency Status? To determine your residency status for 2023, 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. • Full-year Resident: 1) Maine was my domicile for the entire year of 2023; 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 2023, 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 2023 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 2023 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. 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. • 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. • Nonresident: I was not a resident or part-year resident in 2023, 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 www.maine.gov/revenue/ tax-return-forms. 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 www.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* 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. Enter on line 13: 1 Line 14. Enter the federal adjusted gross income shown on your federal Form 1040, line 11 or Form 1040-SR, line 11. *Except, if you may be claimed as a dependent on another person's return OR 0 Line 15a. Income Addition Modifications. Complete Maine Schedule 1A to calculate your entry for this line. *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 2 Line 15b. Income Subtraction Modifications. Complete Maine Schedule 1S to calculate your entry for this line. • Married filing jointly** Part-year residents, Nonresidents and Safe Harbor residents, see Schedule NR or NRH. 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 Line 17. Deduction. CAUTION: If the amount on Form 1040ME, line 16 is more than $91,500 if single or married filing separately; $137,300 if head of household; or $183,050 if married filing jointly or qualifying surviving spouse, 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. 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 2023 is greater than $91,500 if single or married filing separately; $137,300 if head of household; or $183,050 if married filing jointly or qualifying surviving spouse. 1. Enter your 2023 Maine adjusted gross income (Form 1040ME, line 16).................................................................. 1. _____________________ 2. Enter $91,500 if single or married filing separately; $137,300 if head of household; or........................................... 2. $183,050 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 2023 standard deduction. (See federal Form 1040, line 12 or Form 1040-SR, line 12) or your 2023 Maine itemized deductions from Form 1040ME, Schedule 2, line 7, whichever applies................................. 6. _____________________ 7. Multiply line 6 by line 5.............................................................................................................................................. 7. _____________________ 8. 2023 Maine itemized deductions or standard deduction. Subtract line 7 from line 6. Enter this amount on Form 1040ME, line 17.......................................................................................................................................... 8. _____________________ filing jointly or qualifying surviving spouse; or $183,050 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 $4,700. CAUTION: If the amount on Form 1040ME, line 16 is more than $305,150 if filing single; $335,650 if head of household; $366,100 if married 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 2023 is greater than $305,150 if single; $335,650 if head of household; $366,100 if married filing jointly or qualifying surviving spouse; or $183,050 if married filing separately. 1. Enter your 2023 Maine adjusted gross income (Form 1040ME, line 16).................................................................. 1. _____________________ 2. Enter $305,150 if single; $335,650 if head of household; $366,100 if married filing jointly or qualifying surviving spouse, or $183,050 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 2023 personal exemption deduction amount (multiply the amount on Form 1040ME, line 13 by $4,700)...................................................................................................................................................................... 6. _____________________ 7. Multiply line 6 by line 5.............................................................................................................................................. 7. _____________________ 8. 2023 Maine personal exemption deduction amount. Subtract line 7 from line 6. Enter this amount on Form 1040ME, line 18............................................................................................................................................... 8. _____________________ 4 Line 33b. Refunds of $1.00 or more will be issued to you. 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. 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, a paper check will be mailed. Line 21. Note: Schedules NR and NRH are available at www.maine. gov/revenue/tax-return-forms. 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 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. Line 33c. Routing Number (“RTN”) must be 9 digits. 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 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. 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-return-forms. Line 25b. Enter the total amount of Maine estimated tax paid for tax year 2023. Also include on this line extension payments and amounts withheld for 2023 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 34c. 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 25d. For Maine residents and part-year residents only. Enter the amount from Schedule PTFC/STFC, line 15. Lines 35a-35e. Easy Enrollment Health Insurance Program. Complete this section if you live in Maine and you, your spouse (if married), or any of your dependents do not have health insurance coverage and would like to be contacted by the Maine Department of Health and Human Services, Office of the Health Insurance Marketplace ("CoverME.gov") to determine whether you and/or your household are eligible for MaineCare or a CoverME.gov qualified health plan. Check all boxes that apply. You must check box 35a to authorize MRS to share your information with CoverME.gov. Be sure to include the necessary contact information (your mailing address or phone number on Form 1040ME, page 1, or your email address on Form 1040ME, page 3). Line 25e. For Maine residents and part-year residents only. Enter the amount from Schedule PTFC/STFC, line 16 or line 16a, 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. 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. 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 2023 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, 2025. 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 2023 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 email compliance. [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 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]. 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 2023 not already reported on a sales tax return. The tax rate on casual rentals occurring during 2023 is 9%. Note: To report sales tax greater than $2,000, you must file a sales/use tax return at revenue.maine.gov. 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 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 2023 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 2023. 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 2023 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 10 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 in future years (for example, see Schedule 1S, line 10). 36 M.R.S. § 5122(1)(KK)(2). Line 10. Enrolled tribal members in Maine. If the amount on Schedule ETM column C, line 5 is negative, enter that amount on Schedule 1A, line 10 as a positive number. Enclose Schedule ETM available at www. maine.gov/revenue/tax-return-forms. Also see Form 1040ME, Schedule 1S, line 25. 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). 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. 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 2023. 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. 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. If your federal adjusted gross income is not more than $100,000 if single or married filing separately or $200,000 if married filing joint 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). 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 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. 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 www.maine.gov/revenue/tax-return-forms (select Income Tax Guidance Documents). 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 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 11. Medical cannabis business expenses. 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 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 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. Line 12. Adult use cannabis business expenses. 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). 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. 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 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. 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 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). 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 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). 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). 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 7 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). 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 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 $1,380 by volunteering to provide services to the municipality. The amount of the benefits received during the tax year are exempt from Maine individual income tax. Enter on this line the amount of volunteer benefits you received, up to the maximum allowed, to the extent included in federal adjusted gross income. 36 M.R.S. §§ 5122(2)(EE) and 6232(1-A). 1) Enter the gain recognized on the sale of eligible timberlands included in federal adjusted gross income................................................................$___________ 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). 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 since 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 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). Line 19. Amount of 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). 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 20. 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. 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 26. Other. See the 2023 Worksheet for Form 1040ME, Schedule 1S, line 26, 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 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 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 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). 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). 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. 36 M.R.S. § 5218. 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. 36 M.R.S. § 5219-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. 36 M.R.S. § 5218-A. 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). 36 M.R.S. § 5217-A. 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. 36 M.R.S. § 5216-B. 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. 36 M.R.S. § 5219-S. 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. 36 M.R.S. § 5219-NN. 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 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. 36 M.R.S. § 5219-K. 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 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 / Star 5” 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. 36 M.R.S. § 5219-W. 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 2023. Enclose worksheet. 36 M.R.S. § 5217-E. 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. 36 M.R.S. § 5219-UU. 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. 36 M.R.S. § 5219-BB. 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. 36 M.R.S. § 5217-F. Line 6. Other Refundable Tax Credits. See the Form 1040ME, Schedule A, Lines 6 and 20, Other Tax Credits Worksheet for Tax Year 2023, line 4 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 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. 36 M.R.S. § 5219-SS. Line 20. Other Nonrefundable Tax Credits. See the Form 1040ME, Schedule A, Lines 6 and 20, Other Tax Credits Worksheet for Tax Year 2023, line 15 at www.maine.gov/revenue/tax-return-forms that lists the tax credits that may be entered on this line. Enclose applicable worksheet(s). 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. 36 M.R.S. § 5218. 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. 36 M.R.S. § 5218-A. 9 PROPERTY TAX FAIRNESS CREDIT (Form 1040ME, line 25d) You may qualify for the 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 2023 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 $57,500 $57,500 $57,500 Head of Household $75,000 $75,000 $92,500 Married filing Jointly or Qualifying surviving spouse $75,000 $92,500 $92,500 • 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: 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 surviving spouse. *If you or your spouse, if married, are a veteran of the United States Armed Forces who is rated 100% permanently and totally disabled as a result of one or more service-connected disabilities by the United States Department of Veterans Affairs, you may be eligible for a refundable property tax fairness credit up to $2,000 ($3,000 if you are 65 years of age or older). 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 the refundable Sales Tax Fairness Credit up to $255, 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 2023 was not more than $29,800 if filing single; $46,950 if filing head of household; or, $58,600 if married filing jointly; • Your filing status is single, head of household, married filing jointly, or qualifying surviving spouse. 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. 2023 Tax Year Quick Facts ● Sales Tax Fairness Credit maximum income limitation: $29,800 single; $46,950 head of household; or, $58,600 married filing jointly or qualifying surviving spouse. See Schedule PTFC/STFC for more information. Married taxpayers filing separate tax returns do not qualify for the credit. ● Maine personal exemption amount: $4,700. ● Maine standard deduction base amounts: • $13,850 single or married filing separately; • $20,800 head of household; • $27,700 married filing jointly or qualifying surviving spouse. ● Child and dependent care credit is refundable for Maine residents and part-year residents, up to $500. ● Maine itemized deductions are limited to $33,200, 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: $57,500 if single; $92,500 if head of household or married filing jointly or qualifying surviving spouse. 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 2023 MAINE INCOME TAX TABLE If Line 19 Form 1040ME is: At Least But Less Than And Your Filing Status is: Single or Married Head MarriedFiling of Filing Jointly* HouseSeparately hold Your Tax is: 0 0 100 3 3 3 100 200 9 9 9 200 300 15 15 15 300 400 20 20 20 400 500 26 26 26 500 600 32 32 32 600 700 38 38 38 700 800 44 44 44 800 900 49 49 49 900 1,000 55 55 55 1,000 1,000 1,100 61 61 61 1,100 1,200 67 67 67 1,200 1,300 73 73 73 1,300 1,400 78 78 78 1,400 1,500 84 84 84 1,500 1,600 90 90 90 1,600 1,700 96 96 96 1,700 1,800 102 102 102 1,800 1,900 107 107 107 1,900 2,000 113 113 113 2,000 2,000 2,100 119 119 119 2,100 2,200 125 125 125 2,200 2,300 131 131 131 2,300 2,400 136 136 136 2,400 2,500 142 142 142 2,500 2,600 148 148 148 2,600 2,700 154 154 154 2,700 2,800 160 160 160 2,800 2,900 165 165 165 2,900 3,000 171 171 171 3,000 3,000 3,100 177 177 177 3,100 3,200 183 183 183 3,200 3,300 189 189 189 3,300 3,400 194 194 194 3,400 3,500 200 200 200 3,500 3,600 206 206 206 3,600 3,700 212 212 212 3,700 3,800 218 218 218 3,800 3,900 223 223 223 3,900 4,000 229 229 229 4,000 4,000 4,100 235 235 235 4,100 4,200 241 241 241 4,200 4,300 247 247 247 4,300 4,400 252 252 252 4,400 4,500 258 258 258 4,500 4,600 264 264 264 4,600 4,700 270 270 270 4,700 4,800 276 276 276 4,800 4,900 281 281 281 4,900 5,000 287 287 287 5,000 5,000 5,100 293 293 293 5,100 5,200 299 299 299 5,200 5,300 305 305 305 5,300 5,400 310 310 310 5,400 5,500 316 316 316 5,500 5,600 322 322 322 5,600 5,700 328 328 328 5,700 5,800 334 334 334 5,800 5,900 339 339 339 5,900 6,000 345 345 345 6,000 6,000 6,100 351 351 351 6,100 6,200 357 357 357 6,200 6,300 363 363 363 6,300 6,400 368 368 368 6,400 6,500 374 374 374 6,500 6,600 380 380 380 6,600 6,700 386 386 386 6,700 6,800 392 392 392 6,800 6,900 397 397 397 6,900 7,000 403 403 403 If Line 19 Form 1040ME is: At Least But Less Than And Your Filing Status is: Single or Married Head MarriedFiling of Filing Jointly* HouseSeparately hold Your Tax is: 7,000 7,000 7,100 409 409 409 7,100 7,200 415 415 415 7,200 7,300 421 421 421 7,300 7,400 426 426 426 7,400 7,500 432 432 432 7,500 7,600 438 438 438 7,600 7,700 444 444 444 7,700 7,800 450 450 450 7,800 7,900 455 455 455 7,900 8,000 461 461 461 8,000 8,000 8,100 467 467 467 8,100 8,200 473 473 473 8,200 8,300 479 479 479 8,300 8,400 484 484 484 8,400 8,500 490 490 490 8,500 8,600 496 496 496 8,600 8,700 502 502 502 8,700 8,800 508 508 508 8,800 8,900 513 513 513 8,900 9,000 519 519 519 9,000 9,000 9,100 525 525 525 9,100 9,200 531 531 531 9,200 9,300 537 537 537 9,300 9,400 542 542 542 9,400 9,500 548 548 548 9,500 9,600 554 554 554 9,600 9,700 560 560 560 9,700 9,800 566 566 566 9,800 9,900 571 571 571 9,900 10,000 577 577 577 10,000 10,
Extracted from PDF file 2023-maine-income-tax-instructions.pdf, last modified November 2023

More about the Maine Income Tax Instructions Individual Income Tax TY 2023

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 2024, so this is the latest version of Income Tax Instructions, fully updated for tax year 2023. 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.


eFile your Maine tax return now

eFiling is easier, faster, and safer than filling out paper tax forms. File your Maine and Federal tax returns online with TurboTax in minutes. FREE for simple returns, with discounts available for TaxFormFinder users!

File Now with TurboTax

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
Income Tax Instructions Form 1040ME Instructions
Form 1040ES-ME Vouchers and Instructions for Estimated Tax Payments
Schedule B Minimum Tax Worksheet for Schedule B
Schedule PTFC Schedule PTFC Property Tax Fairness Credit
Schedule 1 Income Modifications / Pension Income Deduction Worksheet

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 2024.

Show Sources >

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 nine 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:


2020 Income Tax Instructions

20_1040me_book_resident.indd

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