Maine Minimum Tax Worksheet Instructions Form

MAINE MINIMUM TAX WORKSHEET INSTRUCTIONS

Line 1. The federal Tentative Minimum Tax is calculated on both the 26% and 28% federal alternative minimum taxable income brackets.

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, page

15, 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 6251. Enter the result on line 3 of the Maine Minimum Tax

Worksheet. (36 M.R.S.A. § 5203-A).

Line 5. The Nonresident and Part-Year Resident Apportionment Factor is the amount of the taxpayer’s 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 other taxing jurisdictions on the

schedule 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 D1 the result of multiplying the Net State

Minimum Tax (line 10) by the percent on line C. Enter on line D2 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 D1 or line D2. Enter the appropriate amount on line E and also on line 11.

The following instructions are for the Maine Minimum Tax Credit and Carryforward 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) ...................................................... a ____________

b. Add: Federal Alternative Minimum Tax Foreign Tax Credit on Exclusion Items (from federal Form 8801) .............. b ____________

c. Less: Portion of Federal Tentative Minimum Tax on Exclusion Items attributable to income

that state or federal law prohibits from taxation ...................................................................................................... c ____________

d. Adjusted Federal Tentative Minimum Tax on Exclusion Items (combine lines a, b and c) ...................................... d ____________

e. Nonresident and Part-Year Resident Apportionment Factor (Maine residents enter 100%)

............................... e

__ __ . __ __ %

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

27%

g. Rate ..................................................................................................................................................................... g ____________

h. State Minimum Tax on Exclusion Items (multiply line f by line g) ........................................................................... h ____________

i. 1999 Maine Income Tax (1999 Form 1040ME, line 20 less line 25) ........................................................................ i ____________

j. Net State Minimum Tax on Exclusion Items (subtract line i from line h) ................................................................... j ____________

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 ............................................... k ____________

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 page 19) ............................................................................................................. l ____________

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 jurisdictions 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. Taxpayer’s income associated with 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 Carryforward to 2001, keep a copy of the worksheet to submit with your 2001 Maine

individual income tax return.