Form 1040s-Me - Maine Individual Income Tax

Name(s) as shown on Form 1040S-ME

Your Social Security Number

2005 - Worksheet for Pension Income Deduction - Form 1040S-ME, Line 14

Enclose this Worksheet and copies of your 1099 form(s) with your Form 1040S-ME

Pension benefits that do not qualify are those received from an

You and your spouse (if married) may each deduct up to $6,000

individual retirement account (including SIMPLE individual retirement

of eligible pension income

that is included in your federal adjusted

accounts), simplified employee pension plan, benefits from an

gross income. Except for military pension benefits, the $6,000 cap

ineligible deferred compensation plan under IRC section 457(f),

must be reduced by any social security and railroad retirement

refunds of excess contributions, lump-sum distributions included on

benefits received, whether taxable or not.

federal Form 4972 and distributions subject to the additional 10%

Deductible pension income includes state, federal and military

federal tax on early distributions (see federal Form 5329, Part 1, or

pension benefits, as well as retirement benefits received from plans

federal Form 1040, line 60). Also, disability benefits reported as

established and maintained by an employer for the benefit of its

wages on your federal income tax return do not qualify.

employees under Internal Revenue Code (IRC) sections 401(a)

*Eligible pension income does not include benefits earned

(Qualified Pension Plans, including qualified 401 SIMPLE plans) and

by another person, e e e e e x x x x x ce

cept

pt in the case of a surviving spouse.

403 (Employee annuities). Deductible pension income also includes

Only the individual that earned the benefit from prior

benefits received under IRC section 457(b) (State and local

employment may claim the pension income for the deduction.

government/tax exempt organizations/eligible deferred compensation

However, a widowed spouse receiving survivor’s benefits under

plans),

except that pension income from 457(b) plans received prior

an eligible pension plan may claim that amount for purposes of

to age 55 that is not part of a series of equal periodic payments made

this deduction, but the total pension deduction for the surviving

over the life of the recipient and the recipient’s designated beneficiary,

spouse may not exceed $6,000.

if applicable, may not be included in the deductible pension amount.

NOTE: Enter eligible non-military pension benefits on line 1 and eligible military pension benefits on line 6.

1. Total eligible non-military pension income (both Maine and non-Maine sources) included in your

Taxpayer

Spouse*

federal adjusted gross income (from federal form 1040A, line 12b or Form 1040, line 16b). (Do not

include social security or railroad retirement benefits received or pension benefits received from an

individual retirement account, simplified employee pension plan, an ineligible deferred compensation

plan under IRC § 457(f), lump-sum distributions included on federal Form 4972, distributions subject

to the additional 10% federal tax on early distributions or refunds of excess contributions).

2. Maximum allowable deduction

$ 6,000.00

3. Total social security and railroad retirement benefits you received - whether taxable or not

4. Subtract line 3 from line 2 (if zero or less, enter zero)

5. Enter the smaller of line 1 or line 4 here

6. Total eligible military pension income included in your federal adjusted gross income

7. Add line 5 and line 6

8. Enter the smaller of line 2 or line 7 here and the total for both spouses on line 14,

Form 1040S-ME.

*Use this column only if filing married-joint return and only if spouse separately earned an eligible pension.

Form 1040s-Me - Maine Individual Income Tax - 2005 Page 3

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