Maine Minimum Tax Worksheet Instructions Form

Maine Minimum Tax Worksheet Instructions

Line 1. This is the federal tentative minimum tax calculated on both the 26% and 28% federal alternative minimum taxable income brack-

ets.

Line 3. Enter the portion of the federal tentative minimum tax attributable to income that state or federal law prohibits from taxation. To

compute this amount, subtract from the federal alternative minimum taxable income the income exempt from state taxation (see Maine

Schedule 1 for income exempt from state taxation). On the basis of this adjusted federal minimum taxable income, compute the federal

tentative minimum tax prior to the federal alternative minimum tax foreign tax credit. Subtract the result from the federal tentative minimum

tax (prior to the federal alternative minimum tax foreign tax credit) computed on the original Form 1041, Schedule I. Enter the result on line

3 of the Maine minimum tax worksheet.

Line 5. The Nonresident and part-year resident apportionment factor is the amount of Maine-source income associated with the

adjusted federal tentative minimum tax divided by the total income associated with the adjusted federal tentative minimum tax.

Line 11. If applicable, compute the credit against the Maine minimum tax for minimum tax paid to another taxing jurisdiction on the

worksheet provided. Line A. Enter the total income associated with the adjusted federal tentative minimum tax shown on line 4. Line B.

Enter the income associated with the adjusted federal tentative minimum tax that was also taxed by the other jurisdiction. Line C.

Compute the percentage of income taxed by the other jurisdiction: divide line B by line A. Line D. Enter on line D(1) the result of multiply-

ing the Maine minimum tax (line 10) by the percent on line C. Enter on line D(2) the minimum tax paid the other jurisdiction on income also

taxed under the Maine minimum tax. Line E. This credit is limited to the smaller of line D(1) or line D(2). Enter the appropriate amount on

line E and also on line 11.

The following instructions are for the Maine minimum tax credit and carryover worksheet.

Line 15. Complete the following schedule to compute the Maine minimum tax on exclusion items.

a. Federal tentative minimum tax on exclusion items (from federal Form 8801) .............................................................................. ________

b. Add: federal alternative minimum tax foreign tax credit on exclusion items (from federal Form 8801) .................................... ________

c. Less: portion of federal tentative minimum tax on exclusion items attributable to income

that state or federal law prohibits from taxation .............................................................................................................................. ________

d. Adjusted federal tentative minimum tax on exclusion items (add lines a, b, and c)................................................................... ________

e. Nonresident and part-year resident apportionment factor (Maine residents enter 100%)

(see instructions below) ..................................................................................................................................................................... _ _ . _ _%

f. Multiply line d by line e, enter result here ....................................................................................................................................... ________

27 %

g. Rate ........................................................................................................................................................................................................ ________

h. State minimum tax on exclusion items (multiply line f by line g)................................................................................................... ________

i. 1999 Maine income tax (1999 Form 1041ME, line 4) ........................................................................................................................ ________

j. Net state minimum tax on exclusion items (subtract line i from line h) ........................................................................................ ________

k. Credit against the Maine minimum tax on exclusion items for minimum tax paid to other taxing

jurisdictions on exclusion items (for Maine residents only). Enter line E from worksheet below ........................................... ________

l. 1999 Maine minimum tax on exclusion items (subtract line k from line j — if zero or less, enter zero.

Enter the result here and on line 15 on the reverse side)............................................................................................................... ________

Nonresident and part-year resident apportionment factor (line e above) — The factor is the amount of the taxpayer’s Maine-source income

associated with the adjusted federal tentative minimum tax on exclusion items divided by the total income associated with the adjusted federal

tentative minimum tax on exclusion items.

Credit against the Maine minimum tax on exclusion items for tax paid to other taxing jurisdiction on exclusion items

Worksheet for line k above — Maine residents only

A. Taxpayer’s total income associated with adjusted federal tentative minimum tax on exclusion items ................................... ________

B. Income associated with the adjusted federal tentative minimum tax

on exclusion items derived from other jurisdiction ......................................................................................................................... ________

C. Percentage of income taxed by other jurisdiction (divide line B by line A) ................................................................................ _ _ . _ _ %

D. Limitation of credit:

1. Net state minimum tax on exclusion items from line j above

$____________________ multiplied by _____________% on line C ................................................... ___________

2. Minimum tax on exclusion items paid other jurisdiction on income taxed

under the Maine minimum tax........................................................................................................................... ___________

E. Allowable credit, the smaller of line D(1) or D(2). Enter here and on line k above .................................................................... ________

Line 21. If you have a Maine minimum tax credit carryover to 2001, keep a copy of the worksheet to submit with the 2001 Maine fiduciary

income tax return.