Maine Form 1040ME Line by Line Guide
Did you know 9 states do not require residents to pay a personal income tax? Folks that live in Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, are exempt from this bill. Furthermore, 7 other states simply enforce a flat tax rate. So what's the moral to the story? People who live in these states are able to buy more stuff because they pay less tax.
But for the rest of us, residential income tax is a necessary evil, one that takes a serious bite out of our disposable income. And while the forms are designed to collect the same data, they're all constructed differently. What follows is a breakdown of Form 1040ME, the Maine Individual Income Tax Return. If you don't live in Maine, not to worry, we'll be tackling the other 34 states soon enough.
The 1040ME is a smooth form that shouldn't take you more than an hour to complete. This compares favorably to the mess that states like Iowa have created. So sit back, relax, and follow along. This shouldn't take up much of your time and I'm giving it an 8 of 10 on my user-friendly meter.
As with all state tax forms, begin by filling in your name, address, phone, and social security numbers at the top. Then check the boxes if you want to donate to the Maine election fund or if you're involved in commercial fishing or farming. Remember to print in uppercase letters and use blue or black ink. Apparently, the department of revenue won't be able to read your return if you've written it in pencil or crayon.
Begin step 2 by filling in your filing and residency status. You'll also want to state if you're 65 or over or legally blind. Line 13 is where you enter the total number of exemptions your claiming. Just be sure it matches what's on your federal return.
On Line 14 enter your federal adjusted gross income, you'll be able to get this number from your 1040, 1040a, or 1040EZ. If you need to make any changes to your income, attach Schedule 1 and enter that amount on Line 15. Next, add or subtract Line 15 from Line 14 to get your Maine adjusted gross income the sum of which goes on Line 16.
Check page 3 of the instruction booklet to see if you standard deduction is higher than your itemized deduction and if it is, record it on Line 17. But if it behooves you to itemize, attach Schedule 2 and enter that number on Line 17. Next, multiply your exemptions by $2,850 and put that amount on Line 18. Then subtract Lines 17 and 18 from Line 16 to reveal your taxable income, which goes on Line 19.
To figure your income tax, look up page 19 in the instruction booklet and find your taxable income in the tax table. When you've got it, jot it down on Line 20. If any additions apply, make sure you fill out the Maine Schedule A and record that amount on Line 21. If you qualify for a low income tax credit, put it down on Line 22. Now add Lines 20 and 21 before subtracting that sum from Line 22 to get your total tax, which goes on Line 23.
If you have any tax credits coming your way, be sure to fill out that Maine Schedule A and record the total from that form on Line 24 of this form. If you're a part time Maine resident, work through Line 25. Then you can subtract Lines 24 and 25 from Line 23 to get your net tax, just put it on Line 26 of page 1 and Line 27 of page 2 when you're able.
On Line 28a jot down your Maine withholdings, you can find the amount on your W-2, 1099, or 1099ME forms. On 28b record any estimated tax payments you've already made as well as any carry forward credits from last year. On 28c put down any extension payments and on 28d any refundable child care credits. When you've got all that, add up Lines 28a through 28d the sum of which goes on 28e.
If Line 28e is more than Line 27, you've overpaid and difference goes on Line 29. But if your net tax is larger than your tax payments, you've underpaid. You'll then need to subtract Line 27 from Line 28e and record the difference on Line 30.
If you've incurred a use sales tax (aka bought stuff in a different state and didn't pay any tax) record that amount on Line 31. If Line 31a applies, check the instruction booklet before you work through it. If you want to make a voluntary contribution to a worthy cause, include Schedule CP and enter the amount on Line 32.
Now you can subtract Lines 31, 31a, and 32 from Line 29 to get your net overpayment. If you want a portion of this to credited to next year, include it on Line 34a, otherwise your refund goes right next to that smiley face on Line 34b. To get your refund as fast as possible, be sure to take care of your direct deposit information.
If the total of Line 30 through 32 is larger than Line 29 you still owe the state of Maine. Just enter the difference between these lines to see how much. When you've got your total, enter it on Line 35a and see if Line 35b applies. When ready, add Lines 35a and 35b with the total going on 35c.
Finish the form by signing, dating, and stating your occupation. If you used a tax pro, they'll have to do the same.
I've worked through them all and the 1040ME is one of the easiest personal income tax forms out there. So the next time you see a member of the Maine department of revenue, make sure you give them a hug and thank them for not being like those knuckleheads in Iowa. If you needed another reason to love your state, now you have it.
