Maine Revenue Services Individual Income Tax

1 Maine Revenue ServicesIndividual Income TaxIMPORTANT UPDATETax Year 2020: Note the following changes relative to conformity with federal tax law changes made after December 31, 2019. If applicable, follow the form instructions below to properly file or amend your Maine Compensation Conformity: Form 1040ME, line 14 Form 1040ME, Schedule PTFC/STFC, line 1e or line 2aIf you have not filed your 2020 Maine Individual Income tax return:First, complete your federal Individual Income tax return (Form 1040 or Form 1040-SR), including Schedule 1, following the instructions for completing your federal form. Federal Schedule 1, lines 7 and 8 are used for reporting unemployment compensation Income and exclusion amounts.

2 See , complete your Maine Individual Income tax return (Form 1040ME).On Form 1040ME, line 14, enter your federal adjusted gross Income from federal Form 1040 or Form 1040-SR, line 11. This amount will reflect the amount of unemployment compensation you received that is excluded from federal and Maine Income , if applicable, complete Form 1040ME, Schedule you complete Schedule PTFC/STFC, lines 1a through 1e, include on line 1e the total unemployment compensation you and your spouse, if applicable, received during the you complete Schedule PTFC/STFC, lines 2a through 2d, include on line 2a the sum of the total Income from federal Form 1040 for Form 1040-SR, line 9 plus the unemployment compensation included in calculating federal Form 1040 or Form 1040-SR, Schedule 1, line you have already filed your 2020 Maine Individual Income tax return.

3 You must file an amended Maine Individual Income tax return based on your federal adjusted gross Income that excludes the eligible amount of unemployment compensation you and your spouse, if applicable, received during the your federal return was automatically adjusted by the Internal Revenue Service for the excludable amount of unemployment compensation, you will need to obtain your updated federal adjusted gross Income amount that reflects the exclusion in order to properly file an amended Maine Income tax return. Enter on Form 1040ME, line 14 the updated federal adjusted gross Income amount and complete the remainder of the Maine return following the instructions, including the updated instructions for Schedule PTFC/STFC.

4 Continued on next pageAbove-the-line charitable contributions: Conformity - Follow the line instructions for the forms listed below: Form 1040ME, Schedule NR, line 3 Form 1040ME, Schedule NRH, line 3 Form 1040ME, Worksheet B, line 12 Educational Opportunity Tax Credit: Work Requirement Suspended for tax years beginning in 2020: Maine residents who were employed in Maine prior to, or during, the COVID-19 pandemic and who became unemployed as a result of COVID-19 but who are still making student loan payments may claim the EOTC, to the extent otherwise qualified. Loan Forbearance /Deferment: For tax years beginning on or after January 1, 2020, student loan payments made by individuals in deferment or forbearance, including those subject to a federal student loan administrative forbearance pursuant to the federal Coronavirus Aid, Relief, and Economic Security ("CARES") Act or federal Executive Order, will qualify for the EOTC as long as all other eligibility criteria are required loan amount due will be the amount that would be otherwise due but for forbearance or deferment.

5 If the amount cannot otherwise be determined, the amount considered due will be equal to the benchmark loan instructions for the 2020 Educational Opportunity Tax Credit Worksheet, Loan Payment Schedule, Column for Tax Paid to Another Jurisdiction: For tax years beginning in 2020, a Maine resident who began teleworking in Maine due to the COVID-19 pandemic and who was performing the same Services from a location outside of Maine immediately prior to the COVID-19 state of emergency declared by the Governor, or declared by the jurisdiction where the employee was performing the Services , is allowed to claim the tax credit for Income tax paid to other jurisdictions to the extent that: the Services were performed during 2020 during the state of emergency period; the other jurisdiction is asserting the Income is sourced to that jurisdiction; and the employee does not qualify for an Income tax credit in that jurisdiction for Income taxes paid as a result of the instructions for the Credit for Income Tax Paid to Other Jurisdiction Worksheet for Tax Year : The instructions you are looking for begin on the next more information, see internet access is available at most local libraries in Maine .

6 See your librarian for details about free internet to obtain the latest tax updates, view frequently asked questions (FAQs), pay your tax, or email tax-related questions. To download or request forms or other information: Visit or call (207) 624-7894 - Every day 24 (hearing-impaired only): 711 - Weekdays 9:00 12:00 PTFC/STFC questions: call (207) 624-9784 - Weekdays 9:00 - 12 refund status: Visit or call (207) 624-9784 - Weekdays 9:00 12:00 MAINER esident, Nonresident, or Part-year ResidentIndividual Income Tax BookletForm 1040 MEMaine FastFileElectronic fi ling and payment servicesTAXPAYER ASSISTANCE and FORMSMAINE Revenue BOX 1060 AUGUSTA, ME 04332-1060 Printed Under Appropriation 010 18F Tax Assistance: (207) 626-8475 - Weekdays 9:00 12:00 problems and payment plans: (207) 621-4300- Weekdays 8:00 5.

7 00 Call this number if you have a tax balance due that you would like to violations hot line: (207) 624-9600 - Call this number or send an email to to report possible tax violations including failure to fi le tax returns, failure to report all Income and failure to register for tax fi Income tax information and forms: Call the Internal Revenue Service at (800) 829-1040 or visit 1040ME due date: Thursday, April 15, 2021 IMPORTANT CHANGES for 2020 Reporting use tax on Income tax return. 36 1861-A. For tax years beginning on or after January 1, 2020, the requirement that a tax table be used to calculate use tax reportable on Individual Income tax returns is repealed. However, taxpayers may continue to report unpaid use tax liability on Maine Individual Income tax returns.

8 For taxable items having a sales price no greater than $1,000, the use tax may be estimated by multiplying Maine adjusted gross Income by .04%. For items with a sales price greater than $1,000 but no more than $5,000, the actual unpaid use tax liability for each taxable purchase must be reported. 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 the purchase. ABLE savings account subtraction modifi cation. 36 5122(2)(QQ). For tax years beginning on or after January 1, 2020, earnings on funds held in a qualifi ed Achieving a Better Life Experience (ABLE) account are deductible in calculating Maine taxable depreciation / Maine capital investment credit.

9 36 5122(2)(RR) and 5219-NN. For property placed in service during a tax year beginning on or after January 1, 2020, the bonus depreciation addition modifi cation with respect to property for which the Maine capital investment credit is claimed (36 5122(1)(KK)(1)) may be recaptured in future tax years over the life of the asset. Thus, aff ected property may, for Maine tax purposes, qualify for both regular depreciation and the Maine capital investment loan payment subtraction modifi cation. 36 5122(2)(SS). For tax years beginning on or after January 1, 2020, a qualifi ed 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 modifi cation for student loan payments made by an employer directly to the lender.

10 The modifi cation may not be claimed for any loan payment amounts subtracted under 36 5122(2)(FF). Standard deduction amount. 36 5124-C(1-A). For tax years beginning on or after January 1, 2020, the Maine standard deduction is equal to the federal standard deduction amount, subject to the Maine phase-out. Previously, the Maine standard deduction was limited to the federal standard deduction amount determined under Internal Revenue Code, Section 63 and did not include any additional federal standard deduction amount contained in other provisions of federal exemption. 36 5126-A(1). For tax years beginning on or after January 1, 2020, a married taxpayer may claim a Maine personal exemption deduction for that taxpayer s spouse when not fi ling a joint return as long as the spouse has no gross Income during the taxable year and, notwithstanding the temporary suspension of the federal personal exemption deduction through 2025, a personal exemption deduction would be allowed for the spouse for federal Income tax tax fairness credit.