Maine Minimum Tax Worksheet - 2011 (Page 4 of 4) in pdf

Line 2a. If included in federal alternative minimum taxable income,

amounts included in federal alternative minimum taxable income

enter income from direct obligations of the United States

related to items previously deducted on the federal return but not

Government, such as Series EE and Series HH Savings bonds and

on the Maine return in an earlier year, such as real estate taxes •

U.S. Treasury bills and notes. Generally, this is the estate’s/trust’s

discharge of indebtedness amounts included in federal alternative

portion of Form 1041ME, Schedule 1, line 2a.

minimum taxable income deferred for federal alternative minimum

tax purposes but not Maine alternative minimum tax purposes

Line 2b.

If included in federal alternative minimum taxable

during 2009 or 2010 • the amount of loan payments made by

income, enter social security and railroad retirement beneﬁ ts

employers included in federal alternative minimum taxable income

(tier 1 and tier 2) issued by the U.S. Railroad Retirement Board.

related to individuals qualiﬁ ed for the opportunity Maine credit •

Also, unemployment and sick beneﬁ ts issued by the U.S. Railroad

the amount of the reduction in the salaries and wages expense

Retirement Board are not taxable to Maine. However, beneﬁ ts

deduction directly related to claiming the federal Work Opportunity

issued by the Canadian Railroad Retirement Board are taxable as

Credit or Empowerment Zone Credit to the extent allowed against

Maine income. Generally, this is the estate’s/trust’s portion of Form

federal alternative minimum tax. These amounts are reported on

1041ME, Schedule 1, line 2b.

federal Form 5884, line 2 or federal Form 8844, line 2 (owners of

Line 2c. If included in federal alternative minimum taxable income,

pass-through entities, enter the share of the amount from line 3 of

enter Interest from Maine municipal general obligation & private

these forms to the extent not included on line 2). Note: do not enter

activity bonds & bonds issued by a Maine airport authority.

wage amounts from Form 8844 related to the federal Renewable

Interest from these bonds is exempt from state income tax, even

Community Credit • amounts received from a Holocaust victims

if taxed on the federal return. Generally, this is the estate’s/trust’s

settlement that are included in federal alternative minimum taxable

portion of Form 1041ME, Schedule 1, line 2c.

income (36 MRSA § 5122(2)(O) • account proceeds from a Family

Line 2d. Use this line only if the person retired after 1988 and

Development Account administered by FAME (36 MRSA § 5216-C) •

received retirement beneﬁ ts from the Maine Public Employees

state income tax refunds • earnings from ﬁ shing operations that were

Retirement System (MePERS) in 2011. To calculate the amount

contributed to a capital construction fund • income from investments

for this line, subtract the amount in box 12 from the amount in box

in the Northern Maine Transmission Corporation • the estate’s/trust’s

2a on Form 1099-R form issued by the MePERS. Also include on

share of a ﬁ duciary adjustment – subtractions only (36 MRSA §§

this line MePERS rollover amounts previously taxed by the state

5122(3) and 5164) • interest income and capital gains from the sale

under the Maine alternative minimum tax, whether or not included

of bonds issued by the Waste Management Agency to the extent

in federal alternative minimum taxable income.

included in federal alternative minimum taxable income • all items of

income, gain, interest, dividends, royalties, and other items of income

Line 2e. Enter on this line up to $250, per beneﬁ ciary, of contributions

of a ﬁ nancial institution subject to the Maine franchise tax that are

made to a Maine or non-Maine qualiﬁ ed tuition program (“529

included in federal alternative minimum taxable income due to an

college savings plan”). Generally, this is the estate’s/trust’s portion

ownership interest in the ﬁ nancial institution that is a partnership, S

of Form 1041ME, Schedule 1, line 2e.

corporation, or entity disregarded as separate from its owner • up

Line 2f. Bonus depreciation/IRC §179 expense recapture.

to $6,000 in pension income pursuant to 36 MRSA § 5122(2)(M) •

Amounts required to be added to alternative minimum income

the amount of military retirement beneﬁ ts, not otherwise deducted,

under 36 MRSA §§ 5122(1)(N), 5122(1)(AA) or 5200-A(1)(N) may

received by certain licensed dentists who practice an average or 20

be recaptured over the life of the applicable asset. Generally, this is

hours or more per week in Maine and accept patients who receive

the estate’s/trust’s portion of Form 1041ME, Schedule 1, line 2f. For

MaineCare beneﬁ ts • up to $750 of property tax beneﬁ ts provided by

more information and examples, visit

municipalities to senior citizens pursuant to 36 MRSA § 6232(1-A)

(select Income Tax Guidance Documents).

• expenses incurred in the production of income subject to Maine

Line 2g. Other Subtractions. NOTE: Maine net operating loss

tax, but exempt from federal tax (an example is expenses related

carryover deductions are not allowed for tax years beginning in

to the production of non-Maine municipal bond interest) • long-term

2010, 2011 and 2012. For more information on Maine’s treatment

care insurance premiums paid by the estate or trust that have not

of NOL’s, go to (select Income Tax

been claimed as an itemized deduction on the decedent’s federal

Guidance Documents).

income tax return or as a federal adjustment for self-employed

List the source of each amount claimed in the space provided and

individuals • the total of capital gains and ordinary income resulting

attach supporting documentation when claiming an amount

from depreciation recapture pursuant to Code sections 1245 and

on this line. Enter only amounts included in federal alternative

1250 realized on the sale of multifamily affordable housing property

minimum taxable income. Enter on this line • military compensation

certiﬁ ed by the Maine State Housing Authority. A copy of the MSHA

received by a nonresident servicemember • military annuity payments

certiﬁ cate must be attached to the return. Generally, this is the

made to a survivor of a deceased member of the military as a result

estate’s/trust’s portion of Form 1041ME, Schedule 1, line 2g.

of service in the active or reserve components of the U.S. armed

services under a survivor beneﬁ t plan or reserve component survivor

beneﬁ t plan in accordance with 10 USC, Chapter 73 • recovery

Revised: 09/11

Maine Minimum Tax Worksheet - 2011 Page 4

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