Maine Form 1040ME Instructions

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,