Maine Minimum Tax Worksheet Instructions
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2MAINE MINIMUM TAX WORKSHEET INSTRUCTIONS
Do you owe a Maine Minimum Tax?
Line 2. The income modifications that apply to the Maine
The following estates/trusts must complete the Maine
regular tax also apply to the Maine minimum tax. See
Minimum Tax Worksheet to determine whether they owe a
Worksheet for Line 2 and related instructions for a description
Maine minimum tax:
of the Maine income modifications. The amount you enter
on line 2 may be either a positive or negative number.
•
Estates/Trusts that have a federal alternative minimum
taxable income on federal Form 1041, Scheduel I, line
Line 6. The nonresident apportionment factor is the
29;
amount of the taxpayer’s Maine-source income included on
•
Estates/Trusts that do not have a federal alternative
line 5 divided by the total income on line 5.
minimum taxable income on federal Form 1041,
Scheduel I, line 29, but do have Maine addition income
Line 8. Use the following tables to calculate the Maine
modifications (see Maine Minimum Tax Worksheet for
tentative minimum tax.
Line 2, lines 1a through 1f), the total of which is greater
If line 7 is:
The Tax is:
than the minimum tax exemption amount on federal
Not more than $175,000
7.0% of the adjusted Maine
Form 1041, Schedule I, lline 50 ($22,500 reduced by
alternative minimum taxable income
25% of federal altenative minimum taxable income that
Greater than $175,000
$12,250 plus 7.6% of the excess
exceeds $75,000).
over $175,000
If you exceed these thresholds, you must complete a Maine
Minimum Tax Worksheet to determine whether you owe Maine
minimum tax. See instructions and supporting Worksheets
on page 2 or call (207) 626-8475 to order.
MAINE MINIMUM TAX INSTRUCTIONS — Income Modification Worksheet for Line 2
Line 1. ADDITIONS to federal alternative minimum taxable
The following example illustrates the NOL Recovery Adjustment:
income. Also include the taxpayer’s distributive share of addition
modification items from partnerships and S Corporations.
Corresponding Line
NOL Year
Carryforward Years
on Maine AMT Worksheet:
2004
2005
2006
Line 1a. Income from municipal and state bonds, other
than Maine. Generally, this is the amount from Maine Form
Federal alternative minimum taxable
– 60,000
35,000
25,000
1041, Schedule 1, line 1a. Enter income from municipal and
income prior to NOL deduction
8
8
state bonds and private activity bonds, other than Maine, that
_______
– 35,000
– 25,000
is not included in your federal alternative minimum taxable
1. FAMTI after NOL deduction
– 60,000
0
0
income. For example, enter interest from City of New York
bonds on this line. However, do not enter interest from
2. ADDITION Modification
Portland, Maine bonds.
5122(1)(E)
10,000
Line 1b. Net Operating Loss Recovery Adjustment. Enter
Addition Modifications:
on this line any federal alternative minimum tax net operating
2. Other
10,000
10,000
8,000
loss carried to the tax year that has been previously used to
offset the modifications under the Maine minimum tax. Attach
3. Maine Adjusted Gross
a schedule showing the alternative minimum tax loss and use
Income
-50,000
10,000
18,000
of modifications. See example at right.
The original $60,000 loss in 2004, all of which is carried forward for federal
Line 1c. Maine State Retirement Contributions. Enter on
purposes, is allowed to offset Maine addition modifications in 2004. The amount
this line the amount of your 2004 Maine State Retirement
of the federal NOL carryforward must, therefore, be reduced by the amount
Contributions from Maine Schedule 1, line 1c. To calculate
used in the loss year to offset addition modifications. In this example, $10,000
this amount, subtract your federal wages from your state
of the federal NOL carryforward was used to offset Maine addition modifications
in the year of the loss. Thus, the federal NOL carryforward is, for Maine purposes,
wages appearing on your 2004 State of Maine W-2 form.
These contributions are tax deferred for federal tax, but are
subject to Maine income tax.
deduction claimed in accordance with Section 201 of the
Line 1d. Fiduciary Adjustment - additions only. If
federal Jobs and Growth Tax Relief Reconciliation Act of 2003,
applicable, enter your share of the fiduciary adjustment (36
Public Law 108-27; and, 3) increase in section 179 expense
M.R.S.A. § 5122(3)). Generally, this is the amount from Maine
due to 2003 federal law changes in Section 202 of the federal
Schedule 1, line 1d. You must attach a copy of your federal
Jobs and Growth Tax Relief Reconciliation Act of 2003, Public
Schedule K-1 to verify your share of income.
Law 108-27 (the deduction limit increase from $25,000 to
Line 1e. Bonus Depreciation/Section 179 Expense Add-
$100,000; the phase-out threshold increase from $200,000
back. Federal alternative minimum taxable income must be
to $400,000; and certain off-the-shelf computer software
increased by the net effect of the following amounts reflected
includable as eligible property for purposes of the section
in federal alternative minimum taxable income: 1) 30% bonus
179 deduction). The amount of this modification is determined
depreciation deduction claimed in accordance with Section
by first recalculating the depreciation deduction and section 179
101 of the federal Jobs Creation and Worker Assistance Act
expense on federal Form 4562 exclusive of all bonus depreciation
of 2002, Public Law 107-147; 2) 50% bonus depreciation
and section 179 expense increases listed above. (NOTE: Do
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