Volume 27, Issue 6		October 2017

Maine Revenue Services Conforms to
Certain Federal Tax Relief in Disaster Situations

Maine Revenue Services has announced Maine Tax Filing Relief for those located in federally declared disaster areas.  Taxpayers who reside or have a business located in a federally declared disaster area as noted below will have additional time to file tax returns and submit tax payments.

The relief applies to all taxes administered by Maine Revenue Services, including Sales and Use Taxes, Motor Fuel Taxes, Individual and Corporate Income Taxes, the Estate Tax and Financial Institution Franchise Tax.  Note that the relief includes extended return filing due dates but does not include tax payments originally due before the disaster date.

• Hurricane Harvey – Returns and tax payments due on or after August 23, 2017 but before January 31, 2018 must be filed and paid on or before January 31, 2018.

• Hurricane Irma –  Returns and tax payments due: on or after September 4, 2017 for those in Florida; on or after September 5, 2017 for those in Puerto Rico and the Virgin Islands; and on or after September 7, 2017 for those in Georgia but before January 31, 2018 must be filed and paid on or before January 31, 2018.

• Hurricane Maria – Returns and tax payments due on or after September 16, 2017 for those in the Virgin Islands or on or after September 17, 2017 for those in Puerto Rico but before January 31, 2018 must be filed and paid on or before January 31, 2018.

• Wildfires in California - Returns and tax payments due on or after October 8, 2017 but before January 31, 2018 must be filed and paid on or before January 31, 2018.

Maine Revenue Services will abate interest and any late filing or late payment penalty that would otherwise apply.

To qualify for relief, affected taxpayers should write “HURRICANE HARVEY,” “HURRICANE IRMA,” “HURRICANE MARIA,” or “CALIFORNIA WILDFIRES” across the top of their return.  Businesses or individuals located in the federally declared disaster area who receive penalties and interest for filing returns or paying taxes late during the relief period should contact Maine Revenue Services at 207-626-8475 (Income Tax programs), 207-624-9693 (Sales Tax programs), or 207-624-9609 (Motor Fuel Tax programs) for a waiver of the penalties and interest.

If the IRS grants relief to other areas affected by the hurricanes or grants an additional relief period, Maine Revenue Services intends to grant similar relief to affected Maine taxpayers.

Taxpayers with questions about special federal tax relief associated with federally declared disaster areas should contact the IRS at 866-562-5227 or go to the IRS website at www.irs.gov for posted information.  Taxpayers with questions about their Maine taxes are encouraged to contact Maine Revenue Services at 207-626-8475 (Income Tax programs), 207-624-9693 (Sales Tax programs), or 207-624-9609 (Motor Fuel Tax programs) or visit the Maine Revenue Services website at www.maine.gov/revenue.

2018 State of Maine Individual Income Tax Rates

Below are the individual income tax rate schedules for tax years beginning in 2018. The rate schedules for 2017 are found at: http://www.maine.gov/revenue/forms/1040/2017/RateSched_2017_no surcharge.pdf.

Note: For tax years beginning in 2018, an inflation adjustment is made by multiplying the cost-of-living adjustment, 1.0198, by the lowest dollar amounts of the tax rate tables specified in 36 M.R.S. § 5111, sub-§§ 1-F, 2-F and 3-F and by multiplying the cost-of-living adjustment, 1.0161, by the highest dollar amounts of the tax rate tables specified in 36 M.R.S. § 5111, sub-§§ 1-F, 2-F and 3-F. The Maine standard deduction amount is adjusted by multiplying the cost-of-living adjustment by the amounts specified in 36 M.R.S. § 5124-B, sub-§ 1, para. A. See 36 M.R.S. § 5403. The Maine personal exemption amount is equal to the federal personal exemption amount.

Do not use these tax rate schedules to determine income tax withholding from wages.

Tax Rate Schedule #1
For Single Individuals and Married Persons Filing Separate Returns
If the taxable income is:  The tax is:
Less than $21,450  5.8% of Maine taxable income
$21,450  but less than  $50,750 $1,244  plus  6.75%  of excess over  $21,450
$50,750  or more  $3,222  plus  7.15%  of excess over  $50,750

Tax Rate Schedule #2
For Unmarried or Legally Separated Individuals who Qualify as Heads of Household
If the taxable income is:  The tax is:
Less than $32,150  5.8% of Maine taxable income
$32,150  but less than  $76,150  $1,865  plus  6.75%  of excess over  $32,150
$76,150  or more  $4,835  plus  7.15%  of excess over  $76,150

Tax Rate Schedule #3
For Married Individuals and Surviving Spouses Filing Joint Returns
If the taxable income is:  The tax is:
Less than $42,900  5.8% of Maine taxable income
$42,900  but less than  $101,550  $2,488  plus  6.75%  of excess over  $42,900
$101,550  or more  $6,447  plus  7.15%  of excess over  $101,550

Personal Exemption:  $4,150

Standard Deduction:  Single - $11,800  Married Filing Jointly - $23,600
Head of Household - $17,700  Married Filing Separately - $11,800

Additional Amount for Age or Blindness:

$1,300 if married (whether filing jointly or separately) or a qualified surviving spouse.  The additional amount is $2,600 if one spouse is 65 or over and blind, $2,600* if both spouses are 65 or over, $5,200* if both spouses are 65 or over and blind, etc.
*If married filing separately, these amounts apply only if you can claim an exemption for your spouse.

$1,600 if unmarried (single or head of household).  The additional amount is $3,200 if the individual is both 65 or over and blind.