Resident, Nonresident or Part-year Resident Individual ... Individual Income Tax Booklet Form 1040ME

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Transcript of Resident, Nonresident or Part-year Resident Individual ... Individual Income Tax Booklet Form 1040ME

  • 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.

    Visit www.maine.gov/revenue to learn the status of your refund, obtain the latest tax updates, view frequently asked questions (FAQs), pay your tax or email tax-related questions. To download or request forms or other information: Visit www.maine.gov/revenue/forms or call (207) 624-7894 - Every day 24 Hours. TTY (hearing-impaired only): 711 - Weekdays 8:00 a.m.- 4:30 p.m. Assistance: (207) 626-8475 - Weekdays 8:00 a.m.- 5:00 p.m.

    2017 MAINE Resident, Nonresident or Part-year Resident

    Individual Income Tax Booklet Form 1040ME

    Maine FastFile Electronic fi ling and payment services

    TAXPAYER ASSISTANCE and FORMS

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

    Printed Under Appropriation 010 18F 0002.07

    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. Tax violations hot line: (207) 624-9600 - Call this number or send an email to MRS.TAXTIP@maine.gov to report possible tax violations including failure to fi le tax returns, failure to report all income and failure to register for tax fi ling. Federal income tax information and forms: Call the Internal Revenue Service at (800) 829-1040 or visit www.irs.gov.

    Form 1040ME due date: Tuesday, April 17, 2018

  • IMPORTANT CHANGES for 2017

    Tax rate schedules for tax years beginning in 2017. 36 M.R.S. § 5111. For tax years beginning in 2017, the top tax rate bracket threshold is: $50,000 for single fi lers and married persons fi ling separate returns; $75,000 for head of household fi lers; and, $100,000 for married taxpayers fi ling joint returns and surviving spouses. The 2017 tax rate schedule is available at www.maine.gov/revenue/forms.

    Income tax surcharge. 36 M.R.S. § 5111(6). For tax years beginning on or after January 1, 2017, the 3% individual income tax surcharge enacted by I.B. 2015, c. 4, § 2 (I.B. 3 – LD 1660) on taxable income in excess of $200,000 is repealed.

    Itemized deduction amount. 36 M.R.S. § 5125(3)(G). The requirement to reduce Maine itemized deductions by the amount of expenses included in the base for calculating the adult dependent care credit is repealed.

    Sales tax fairness income tax credit. 36 M.R.S. §§ 5213-A and 5403(5). For tax years beginning on or after January 1, 2017, the amount of the base credit is increased to a range of $125 to $225, depending on the number of exemptions claimed on the taxpayer’s return.

    Property Tax Fairness Credit. 36 M.R.S. § 5219-KK. For tax years beginning on or after January 1, 2017, married individuals fi ling separate returns are prohibited from claiming the property tax fairness credit.

    2

    Credit for disability income protection plans in the workplace. 36 M.R.S. §§ 5122(1)(KK) & 5219-OO. For tax years beginning on or after January 1, 2017, a credit against income tax is allowed for employers who provide either a qualifi ed short-term disability income protection plan or a qualifi ed long-term disability income protection plan. The credit is equal to $30 per employee enrolled in a plan after January 1, 2017 who was not covered under a disability income protection plan offered by the employer in the tax year immediately preceding the year the employer is fi rst eligible for the credit. The credit must be taken in the fi rst year the employer becomes eligible to claim the credit and may be claimed for up to three consecutive tax years. The credit is limited to the tax liability of the taxpayer and any unused credit may not be carried back or forward to any other tax year.

    Credit for certain homestead modifi cations. 36 M.R.S. § 5219-PP. For tax years beginning on or after January 1, 2017, a credit against income tax is allowed for individual taxpayers whose federal adjusted gross income is not more than $55,000. The credit is equal to the lesser of $9,000 or the applicable percentage (up to 100%) of qualifi ed expenses incurred for certain home modifi cations to make a homestead accessible to an individual with a disability or physical hardship. Qualifi ed expenditures must be certifi ed by the Maine State Housing Authority. The credit is limited to the tax liability of the taxpayer. Carryforward provisions apply.

    ● Maine personal exemption amount: $4,050.

    ● Maine standard deduction base amounts:

    • $11,600 single or married fi ling separately; • $17,400 head of household; • $23,200 married fi ling jointly or qualifying widow(er).

    • Additional amount for age and/or blindness: $1,550 unmarried; $1,250 married.

    ● Maine itemized deductions are limited to $28,600, except medical expenses are not subject to the limit.

    • Use Form 1040ME, Schedule 2 to claim Maine itemized deductions.

    ● Use Form 1040ME, Schedule 1 to report income that is taxable in Maine but not by the federal government (income additions) or income that was taxable by the federal government but not in Maine (income subtractions).

    ● Property Tax Fairness Credit maximum income limitation: $33,333 single; $43,333 head of household, married fi ling jointly or qualifying widow(er) and you are claiming no more than two personal exemptions; or, $53,333 head of household, married fi ling jointly or qualifying widow(er) and you are claiming more than two personal exemptions. See Schedule PTFC/STFC for more information. Married taxpayers fi ling separate tax returns do not qualify for the credit.

    ● Sales Tax Fairness Credit maximum income limitation: $31,050 single; $40,600 head of household; or, $51,100 married fi ling jointly or qualifying widow(er). See Schedule PTFC/STFC for more information. Married taxpayers fi ling separate tax returns do not qualify for the credit.

    ● Child and dependent care credit is refundable for Maine residents and part-year residents, up to $500.

    ● The adult dependent care credit is refundable for Maine residents and part-year residents, up to $500.

    ● The earned income tax credit is refundable for Maine residents and part-year residents.

    ● The educational opportunity tax credit may be available if you obtained an associate degree or bachelor’s degree in Maine after 2007 or from a Maine or non-Maine college after 2015 or a graduate degree from a Maine college after 2015 and you have outstanding educational loans for that degree.

    2017 Tax Year Quick Facts

  • 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. Due to scanning requirements, only original forms and schedules may be submitted. Print or type your name(s) and current mailing address in the spaces provided. Social security number(s): You must enter your social security number(s) in the spaces provided.

    Check the box above your social security number if this is an amended return. You must fi le an amended Maine income tax return if (1) you have fi led 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 fi ling of your original Maine income tax return. If you need to amend a Maine income tax return for a tax year prior to 2013, please use Form 1040X-ME available at www.maine.gov/revenue/forms. For more information, see the frequently asked questions at www.maine.gov/revenue/faq/income_faq.html.

    Line A. Maine Residents Property Tax Fairness Credit & Sales Tax Fairness Credit - Maine residents and part-year residents only - See Schedule PTFC/STFC. Check the box on line A only if you are claiming the Property Tax Fairness Credit on line 25d and/or the Sales Tax Fairness Credit on line 25e AND you are completing Form 1040ME in accordance with the instructions in Step 1 of Schedule PTFC/STFC. 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/ forms or call the forms line at (207) 624-7894.

    Line 1. FOR MAINE RESIDENTS ONLY. The Maine Clean Election Fund fi nances the election campaign of certifi ed 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.

    Line 2. Check if at least two-thirds of your gross income for 2017 was from commercial farming or fi shing as defi ned by the Internal Revenue Code. Include your spouse’s income in your calculation if you are fi ling a joint return.

    Lines 3-7. Use the fi ling status from your federal income tax return. If you fi led a married-joint federal return and one spouse is a part-year resident, nonresident or “Safe Harbor” resident, see the Guidance to Residency Status available at www.maine.gov/revenue/forms (click on Income Tax Guidance Documents). If you are fi ling married fi ling separately, be sure to include your spouse’s name and social security number. For pass-through entities only: check the red box below line 7 if this is a composite fi ling. A composite return may be fi led by a pass- through entity on behalf of nonresident owners. You must complete and enclose Schedule 1040C-ME and supporting documentation with your composite return. For more information on composite fi ling and forms, visit www.maine.gov/revenue.

    Lines 8-11. S