Instructions For Form 1040es-Me - Estimated Tax For Individuals

Maine Revenue Services

STATE OF MAINE

PO Box 9101

ESTIMATED TAX FOR INDIVIDUALS

Augusta, Maine

FORM 1040ES-ME INSTRUCTIONS

04332-9101

Maine EZ Pay

•

These instructions are intended for the majority of taxpayers who report

You may pay your income taxes electronically at

on a calendar year basis. If you report on a ﬁ scal year basis, the dates

gov/revenue. Electronic payments eliminate the necessity of ﬁ ling

should be changed to correspond with your ﬁ scal year.

forms 1040ES-ME (income tax estimated payment vouchers).

Note: Certain taxpayers with large annual tax liabilities are required

•

You may download additional worksheets and vouchers from the internet

to remit tax payments electronically. See Maine Rule 102 on the Maine

gov/revenue/forms

or call (207) 624-7894. If you need

Revenue Services web site at

gov/revenue

(select Laws &

help completing the worksheet on the back, call (207) 626-8475.

Rules). To use Maine EZ Pay you must pre-register online with personal and

•

Please ﬁ le the original or downloaded estimated tax voucher with Maine

bank account information, and payments will be withdrawn from the checking

Revenue Services. Make a copy of the voucher for your records.

or savings account that is set up in the registration. For more information,

see

gov/revenue

(click on Electronic Services).

1.)

WHO MUST MAKE ESTIMATED TAX PAYMENTS. In most cases,

Extension to pay; waiver of penalty. If you are subject to the special

you must pay estimated tax if your estimated Maine income tax for the year,

rule described above and you meet all of the criteria listed below, you are

over and above tax withheld and allowable credits, is $1,000 or more and if

entitled to an extension of time to pay the estimated tax or to receive a waiver

your tax liability for the prior year was also $1,000 or more.

of penalty associated with the unusual event income. Any extension of time

granted may not extend past the original due date for ﬁ ling the return for

2.)

HOW TO CALCULATE YOUR ESTIMATED TAX. Use the worksheet

the tax year. Requests for extension of time to pay or for waiver of penalty

on the reverse side to calculate your estimated tax. To avoid penalties, the

must be submitted to the State Tax Assessor in writing. You must meet all

estimated tax paid must be no less than the smaller of the following:

of the following:

An amount equal to the preceding year’s tax liability, if the preceding

You are an owner in a pass-through entity;

year was a taxable year of 12 months; or

You had no control over the distribution of the unusual event

An amount equal to 90% of the tax liability for the current taxable

income;

year.

You did not actually or constructively receive payment of the unusual

You will also ﬁ nd information concerning the Maine Standard Deduction

event income; and

and the Tax Rate Schedules on the reverse side. The exemption amount,

You pay the estimated tax on the unusual event income by the

standard deduction amounts and tax rate schedules are those in effect under

estimated tax installment payment due date following the installment

current law for tax years beginning in 2011.

period during which you actually or constructively receive the unusual

Note – Special Rule for Unusual Event Income.

event income.

Deﬁ nitions. For purposes of this special rule, the following terms have

3.)

WHEN AND WHERE TO MAKE PAYMENTS. The ﬁ rst installment

the following meanings:

payment is due on April 19, 2011. You may either pay all of your estimated

Maine taxable income means income subject to Maine income tax, but

tax at that time or pay in four equal installments on April 19, 2011, June 15,

which is not subject to Maine income tax withholding. For example, for

2011, September 15, 2011, and January 17, 2012. Payments can be made

purposes of this special rule, Maine taxable income includes business income

electronically using Maine EZ Pay (no forms required) at

gov/

and capital gains, but does not include wages.

revenue

or send your payment with the appropriate voucher Form 1040ES-

ME to the address printed on the voucher. If you overpaid your 2010 income

Unusual event income means Maine taxable income (as deﬁ ned above)

tax and elected to apply the overpayment to your 2011 estimated tax, that

received during an estimated tax installment period of the current tax year, but

overpayment may be partially or fully applied to any installment.

only if that amount exceeds the Maine taxable income received during the same

estimated tax installment period of the prior tax year by $500,000 or more.

4.)

FARMERS AND FISHERMEN. If at least 2/3 of your estimated

adjusted gross income is from farming or ﬁ shing, your estimated tax may

Special Rule. If you have unusual event income, you must pay a Maine

be paid in a single installment due on or before January 17, 2012. If you ﬁ le

estimated tax on that income equal to 90% of the tax liability on that income.

your 2011 individual income tax return on or before March 1, 2012, and pay

This special rule prohibits you from utilizing the prior year tax liability rule

the total tax at that time, you need not make an estimated tax payment.

under paragraph a above to determine the amount of Maine estimated tax

due on unusual event income. The estimated tax due on unusual event

5.)

CHANGES IN INCOME. Even though you are not required to pay

income is in addition to the estimated tax due on any other income received

estimated tax on April 15, your expected income may change so that you will

during the installment period (such as pension or annuity income subject

be required to pay estimated tax later in the year. When the change becomes

to Maine income tax withholding where the Maine withholding amount is

known and the estimated tax is calculated, payment may be made at one

insufﬁ cient). Maine income that is not unusual event income is subject to

time on the next installment due date or it may be paid in equal installments

the regular estimated tax requirements contained in 36 MRSA § 5228 and

on the remaining due dates. If your estimated tax liability decreases because

brieﬂ y described in these instructions.

of an income change, reduce the remaining installments.

Example: If your Maine taxable income not subject to withholding during

6.)

UNDERPAYMENT PENALTY. A penalty accrues automatically

January-March 2010 was $300,000 and your Maine taxable income during

on underpayments of the required installment amount for the period of

January-March 2011 is $900,000, you have unusual event income (i.e., the

underpayment. The penalty does not apply if each required payment was

2011 income amount exceeds the 2010 income amount by $500,000 or more).

made on time and if the total estimated tax paid is equal to 90% (66 2/3% for

Therefore, under the special rule, you must pay a Maine estimated tax for the

farmers and ﬁ shermen) of the income tax liability for the current year or 100%

January-March 2011 installment period equal to 90% of the tax liability on the

of the tax liability for the preceding year, if that year was a taxable year of 12

$600,000 ($900,000 - $300,000). You cannot, with respect to the $600,000,

months. If you have unusual event income, you may be eligible to request an

calculate the estimated tax based on your prior year tax liability (as may be

extension of time to pay the estimated tax or to request a waiver of the penalty

allowed for other income).

associated with unusual event income. See note under item 2 above.

COMPUTATION and RECORD of PAYMENTS

VOUCHER NUMBER

TOTAL ESTIMATE

AMOUNT OF

2010 OVERPAYMENT

BALANCE PAYABLE

TOTAL OF

AND DATE PAID

ORIGINAL OR AMENDED

INSTALLMENT PAYABLE

APPLIED TO INSTALLMENTS

WITH CHECK

PAYMENTS

APRIL 19

JUNE 15

SEPT. 15

JAN. 17

Printed under Approp. 010 18F 0002.07

Instructions For Form 1040es-Me - Estimated Tax For Individuals - 2011

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