Volume 28, Issue 13		December 2018

 

Maine Revenue Services – Holiday Closures

Maine Revenue Services (“MRS”) will be closed the following days:

• Monday, December 24
• Tuesday, December 25
• Wednesday, December 26

The office will reopen at 8:00am on Thursday December 27.

 

2018 Maine Individual Income Tax Return Filing Due Date

Maine will conform to the federal due date change for 2018 individual income tax returns.  Maine income tax returns ordinarily due April 15, 2019 will instead be due Wednesday, April 17, 2019.

The change in due date is due to the observance of Patriot’s Day in Maine on Monday, April 15, 2019 and the observance of Emancipation Day in the District of Columbia on Tuesday, April 16, 2019.

The due date change does not apply to any Maine tax return that has a statutorily defined due date that is not tied to a federal due date.

Maine Form 2848-ME
Power of Attorney and Declaration of Representative

In order to safeguard the confidentiality of taxpayer information, MRS requires taxpayers to provide a signed Maine Form 2848-ME authorizing MRS to communicate with the taxpayer’s named representative regarding specific tax matters.  Other forms of authorization and federal forms may not be substituted for Form 2848-ME.  Form 2848-ME is available on the MRS website at https://www.maine.gov/revenue/forms/ (click on General Forms).

Sales and Use Tax – Sales Tax Bulletins

General Information Bulletins #39 and #43 have been published and can be found at www.maine.gov/revenue/salesuse/salestax/bulletinssales.htm by scrolling to the bottom of the page. 

Revisions include:

• Amending the definition of sales price to include all consideration received for the rental of living quarters.
• New registration requirements – Effective October 1, 2018, room remarketers and transient rental platforms are required to register as retailers with Maine Revenue Services.
• Changes to the method of calculating sales tax from the bracket system to conventional rounding.
• Exclusion of paint stewardship assessment.

2019 State of Maine Individual Income Tax Rates

Below are the individual tax rate schedules for tax years beginning in 2019.  The rate schedules for 2018 are found at: https://www.maine.gov/revenue/forms/1040/2018/rate_sched_2018_rev_sept18.pdf.

Note: For tax years beginning in 2019, an inflation adjustment is made by multiplying the cost-of-living adjustment, 1.038, 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, 1.034, 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 personal exemption amount is adjusted by multiplying the cost-of-living adjustment, 1.0186, by the dollar amount of the personal exemption specified in 36 M.R.S. § 5126-A, sub-§ 1, for the taxpayer and the taxpayer’s spouse, if married.  See 36 M.R.S. § 5403.  The Maine standard deduction amount is equal to the federal standard deduction 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 taxable income is:			The tax is:
Less than $21,850			5.8%	of Maine taxable income
$21,850	but less than	$51,700	$1,267	plus 6.75% of excess over	$21,850
$51,700	or more		$3,282	plus 7.15% of excess over	$51,700

Tax Rate Schedule #2
For Unmarried or Legally Separated Individuals who Qualify as Heads of Household

If taxable income is:			The tax is:
Less than $32,750			5.8%	of Maine taxable income
$32,750	but less than	$77,550	$1,900	plus 6.75% of excess over	$32,750
$77,550	or more		$4,924	plus 7.15% of excess over	$77,550

Tax Rate Schedule #3
For Married Individuals and Surviving Spouses Filing Joint Returns

If taxable income is:			The tax is:
Less than $43,700			5.8%	of Maine taxable income
$43,700	but less than	$103,400	$2,535	plus 6.75% of excess over	$43,700
$103,400	or more		$6,565	plus 7.15% of excess over	$103,400

Personal Exemption:  $4,200 – applicable to the taxpayer (and spouse if married filing jointly)

Standard Deduction:  Single - $12,200  Married Filing Jointly - $24,400
Head of Household - $18,350  Married Filing Separately - $12,200

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.

$1,650 if unmarried (single or head of household).  The additional amount is $3,300 if the individual is both 65 or over and blind.