Earned Income Tax Credit
For tax years beginning on or after January 1, 2016, the earned income tax credit is refundable for Maine residents. The refundable credit is prorated for part-year residents.
Child and Dependent Care Credit
For tax years beginning on or after January 1, 2016, the credit for child and dependent
care expenses is no longer refundable for nonresident taxpayers.
New Adult Dependent Care Credit
For tax years beginning on or after January 1, 2016, eligible taxpayers are allowed to claim a tax credit equal to 25% of the applicable percentage of adult dependent care expenses paid for adult day care, hospice services and respite care during the taxable year to the extent the expenses are not used to calculate the federal child and dependent care credit. The dependent care expenses that may be used to calculate the credit are limited to $3,000 for one qualifying individual or $6,000 for two or more qualifying individuals and the applicable percentage is the percentage used to calculate the federal child and dependent care credit. The credit for nonresidents is limited to the taxpayer’s ratio of Maine source income to federal adjusted gross income. For part-year residents, the credit is prorated based on the ratio of the taxpayer’s Maine income (Maine adjusted gross income during the period of Maine residency plus Maine source income during the period of non residency)
to federal adjusted gross income. The credit is refundable up to $500.
Child Care Credit
Your child care provider may be certified as a Quality Child Care Program facility by the Department of Health and Human Services (DHHS), Office of Child Care and Head Start. If so, you will be required to enter your child care provider's Quality Child Care certificate number or Child Care Quality Rating System certificate number as well as your quality child care expenses paid.
To view the Worksheet for Child Care Credit, please refer to Page 2 when clicking here. For a list of certified quality child care providers, please call (207) 624-7909 Monday through Friday.
Credit for Taxes Paid to Another State
To qualify for the credit for income tax paid to other jurisdictions, the other taxing jurisdiction to which income taxes are paid must be another state of the United States, a political subdivision of any state, the District of Columbia, or a political subdivision of a foreign country that is analogous to a state of the United States (for example, New Brunswick, Canada). If a resident has to pay income taxes to both a state and a political subdivision of a state (generally a city), the taxes of the state and political subdivision must be combined when calculating the allowable credit.
The credit is limited to the portion of the individual's Maine income tax that relates to the income being taxed by the other jurisdiction that is derived from sources in that jurisdiction. Income sourced to another state must be determined in the same way that a Maine nonresident calculates Maine-source income for purposes of Schedule NR or Schedule NRH. The credit also cannot be more than the income tax actually paid to the other jurisdiction.
TaxSlayer will automatically calculate this credit for your Resident Maine return if you have a Nonresident return created in your account. If you have a Part-Year return created, you will need to manually input the information asked in the Maine state return.
For additional information, please refer to the Worksheet for Credit for Taxes Paid to Other Jurisdictions
Property Tax Fairness Credit
Eligible Maine taxpayers may qualify for a refundable Property Tax Fairness Credit up to $600 ($900 if you are 65 year of age or older) if you meet all of the following:
1. You were a Maine resident during any part of the tax year;
2. 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;
3. Your total income during 2016 was not more than the amount shown in the table below for your filing status and the number of personal exemptions you claim:
If your Filing Status is: AND You claim no more than OR You claim more than 2 personal exemptions 2 personal exemptions
Your maximum income limitation is:
Single $33,333 $33,333
Head of Household, or $43,333 $53,333
Married filing Jointly, or
Married Filing Separately $21,667 $26,667
• You paid property tax on your home (principal residence) in Maine during the tax year that is greater than 6% of your total income or you paid rent on your home (principal residence) in Maine during the tax year that is greater than 40% of your total income. Note that the amount of property tax or rent you can include may be limited. See line 7 on Schedule PTFC/STFC.
NEW Sales Tax Fairness Credit
You may qualify for a refundable Sales Tax Fairness Credit up to $180, depending on the number of personal exemptions you claim, if you meet all of the following:
• You were a Maine resident during any part of the tax year;
• Your total income during 2016 was not more than $28,500 if filing single; $38,250 if filing head of household; or, $48,000 if married filing jointly;
• Your filing status is single, head of household, married filing jointly, or qualifying widow(er).
NOTE: You cannot take the Sales Tax Fairness Credit if your filing status is married filing separately, individuals who are safe-harbor residents treated as non-resident individuals because they reside outside Maine for significant periods of time, and individuals who are incarcerated and have no family members living in Maine.
For tax years beginning on or after January 1, 2016, the following income tax credits are repealed:
• Jobs and investment tax credit. 36 M.R.S. § 5215(6-C).*
• Family development account credit. 36 M.R.S. § 5216-C.
• Credit for employer-assisted day care. 36 M.R.S. § 5217(5).*
• Credit for employer-provided long-term care benefi ts. 36 M.R.S. §
• Credit for the elderly or disabled. 36 M.R.S. § 5219-A.
• Forest management planning credit. 36 M.R.S. § 5219-C.
• High-technology investment tax credit. 36 M.R.S. § 5219-M(7).*
• Credit for dependent health benefi ts. 36 M.R.S. § 5219-O(5).*
• Quality child care investment credit. 36 M.R.S. § 5219-Q(5).*
• Credit for biofuel commercial production. 36 M.R.S. § 5219-X(5).*
*Unused credit amounts may be utilized to the fullest extent allowed by the carry forward provisions for each credit indicated.