Maine Standard Deduction: Amounts and Eligibility
Learn how the Maine standard deduction works to reduce your taxable income. This guide covers the key calculations and considerations for your state tax return.
The Maine standard deduction is a fixed-dollar amount that taxpayers can subtract from their Maine adjusted gross income. This subtraction reduces the income subject to state tax, which can lower a taxpayer’s final tax liability. It provides a simplified way to account for personal expenses without needing to track and document each one.
This deduction is an alternative to itemizing deductions, where a taxpayer lists out specific deductible expenses. Maine establishes its own standard deduction amounts, which are updated periodically. The choice to use this deduction is made annually when filing a state income tax return.
Maine Standard Deduction Amounts
For the 2024 tax year, the state of Maine offers specific standard deduction amounts based on a taxpayer’s filing status. These amounts are indexed for inflation and may be adjusted in future tax years.
- Single: $14,600
- Married Filing Separately: $14,600
- Head of Household: $21,900
- Married Filing Jointly: $29,200
In addition to the base amounts, Maine law provides for a higher standard deduction for taxpayers who are age 65 or older or who are legally blind. For an unmarried taxpayer, the additional amount is $1,950 for each condition. A single individual who is both over 65 and blind can therefore add $3,900 to their standard deduction. For married taxpayers, the additional amount is $1,550 per condition. If one spouse is 65 or older, the couple’s deduction increases by $1,550.
These standard deduction amounts are subject to a phase-out for higher-income taxpayers. For the 2024 tax year, the deduction begins to be reduced for single taxpayers with Maine income exceeding $97,150. For married taxpayers filing a joint return, this phase-out begins when their Maine income is over $194,300. The deduction is gradually reduced as income increases beyond these thresholds.
Eligibility for the Maine Standard Deduction
While most resident taxpayers can claim the Maine standard deduction, there are specific rules that make certain individuals ineligible. The most common restriction applies to married individuals who file separate state tax returns. If one spouse decides to itemize their deductions on their Maine return, the other spouse is not permitted to claim the standard deduction and must also itemize.
Other categories of filers are also barred from taking the standard deduction. This includes nonresident aliens and individuals who are filing a tax return for a period of less than 12 months, for instance, due to a change in their annual accounting period. If a taxpayer’s situation falls into one of the ineligible categories, they are required to itemize their deductions if they wish to reduce their taxable income.
Choosing Between Standard and Itemized Deductions
Taxpayers in Maine have the choice between taking the standard deduction or itemizing deductions, and this decision should be based on which method results in a larger overall deduction. To determine if itemizing is beneficial, a taxpayer must calculate the total of their potential itemized deductions and compare it to the standard deduction amount for their filing status. If the total of itemized expenses is greater, itemizing will lead to a lower tax bill.
Common expenses that can be itemized on Maine’s Schedule A include:
- A portion of medical and dental expenses that exceed a certain percentage of federal adjusted gross income.
- Payments of other taxes, such as state and local income or sales taxes and property taxes, subject to a combined federal limit of $10,000 per household.
- Home mortgage interest on a primary or secondary residence.
- Charitable contributions made to qualified organizations.
A taxpayer should gather records for all potential deductible expenses from the tax year. If the total of these expenses does not exceed the applicable standard deduction, then taking the standard deduction is the more advantageous and simpler option.
Claiming the Deduction on Your Maine Tax Return
Once a taxpayer has determined that taking the standard deduction is the best course of action, the process of claiming it on the state tax return is straightforward. The action is completed on the primary Maine income tax form, Form 1040ME.
The standard deduction amount is entered on a specific line of Form 1040ME. Tax preparation software will automatically populate this field if a taxpayer is e-filing and chooses the standard deduction. For those filing by paper, it is a manual entry. No additional forms or schedules are needed to claim the standard deduction.