Maine Minimum Tax Worksheet Instructions - Income Modification Worksheet
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3MAINE MINIMUM TAX WORKSHEET INSTRUCTIONS
Do you owe a Maine Minimum Tax?
2 and related instructions for a description of the Maine income
The following individuals must complete the Maine Minimum Tax
modifications. Enter only amounts not already added to or
Worksheet to determine whether they owe a Maine minimum tax:
subtracted from federal alternative minimum taxable income.
The amount you enter on line 2 may be either a positive or
• Individuals who have a federal alternative minimum taxable
negative number.
income on federal Form 6251, line 28;
• Individuals whose filing status is:
Line 4. Enter on line 4 the appropriate amount from the table at line 4
Single or head of household and whose Maine addition income
on the Worksheet. If line 3 is greater than the income amount in the
modifications* are greater than $112,500;
table for your filing status, complete and attach the Worksheet for
Married filing jointly and whose Maine addition income
line 4 (Maine AMT Exemption Worksheet).
modifications* are greater than $150,000; or,
Line 6. Use the following tables to calculate the Maine tentative
Married filing separately and whose Maine addition income
minimum tax.
modifications* are greater than $75,000.
(For all taxpayers except married individuals filing separate returns)
*see the Maine Minimum Tax Worksheet for line 2
If line 5 is:
The Tax is:
• Individuals who do not have a federal alternative minimum
Not more than $175,000
7.0% of the Maine alternative
taxable income on federal Form 6251, line 28, but who do have
minimum taxable income
Maine addition income modifications (see the Maine Minimum
Greater than $175,000
$12,250 plus 7.6% of the excess
Tax Worksheet for line 2), the total of which is greater than the
over $175,000
Maine minimum tax exemption amounts shown below:
(For married taxpayers filing separate returns)
Filing Status
Exemption Amount
If line 5 is:
The Tax is:
Single or Head of Household ................................... $35,750
Not more than $87,500
7.0% of the Maine alternative
Married filing Jointly or Qualifying Widow(er) .......... $49,000
minimum taxable income
Married Filing Separately ......................................... $24,500
Greater than $87,500
$6,125 plus 7.6% of the excess
If you exceed these thresholds, you must complete a Maine Minimum
over $87,500
Tax Worksheet to determine whether you owe Maine minimum tax.
See instructions and supporting Worksheets attached or call (207)
Line 7. The nonresident and part-year resident apportionment
626-8475.
factor is the amount of the taxpayer’s Maine-source income included
on line 5 divided by the total income on line 5.
Line 2. The income modifications that apply to the Maine regular
tax also apply to the Maine minimum tax. See Worksheet for Line
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. Enter the amount from Maine Schedule 1, line 1a. This is
Federal alternative minimum taxable
– 60,000
35,000
25,000
income from municipal and state bonds and private activity bonds,
income prior to NOL deduction
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_______
– 35,000
– 25,000
other than Maine, that is not included in your federal alternative
minimum taxable income. For example, enter interest from City of
1. FAMTI after NOL deduction
– 60,000
0
0
New York bonds on this line. However, do not enter interest from
Portland, Maine bonds.
2. ADDITION Modification
5122(1)(E)
10,000
Line 1b. Net Operating Loss Recovery Adjustment. Enter on
this line any federal alternative minimum tax net operating loss
Addition Modifications:
carried to the tax year that has been previously used to offset addition
2. Other
10,000
10,000
8,000
modifications under the Maine minimum tax. Attach a schedule
showing the alternative minimum tax loss and use of modifications.
3. Maine Adjusted Gross
Income
-50,000
10,000
18,000
See example at right.
Line 1c. Maine State Retirement Contributions. Enter on this
The original $60,000 loss in 2004, all of which is carried forward for federal
purposes, is allowed to offset Maine addition modifications in 2004. The amount
line the amount of your 2004 Maine State Retirement Contributions
of the federal NOL carryforward must, therefore, be reduced by the amount
from Maine Schedule 1, line 1c. To calculate this amount, subtract
used in the loss year to offset addition modifications. In this example, $10,000
your federal wages from your state wages appearing on your 2004
of the federal NOL carryforward was used to offset Maine addition modifications
State of Maine W-2 form. These contributions are tax deferred for
in the year of the loss. Thus, the federal NOL carryforward is, for Maine purposes,
federal tax, but are subject to Maine income tax.
reduced by an addition modification in 2006. For additional information
concerning the NOL recovery adjustment, see
Line 1d. Fiduciary Adjustment - additions only. If applicable,
enter your share of the fiduciary adjustment (36 M.R.S.A. § 5122(3)).
Generally, this is the amount from Maine Schedule 1, line 1d. You
must attach a copy of your federal Schedule K-1 to verify your share
of income.
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