Volume 30, Issue 1		January 2020

Maine Legislature to Consider Conformity with Recent Federal Tax Law Changes

 

Following the recent enactment of the federal Further Consolidated Appropriations Act, 2020 (“the Act”), Governor Janet T. Mills has submitted legislation to the Maine Legislature to conform to the federal tax law changes.

Generally, the federal changes under the Act first apply to tax years beginning on or after January 1, 2019; however, the Legislature must also consider conformity issues relating to certain retroactive changes under the Act that are applicable to tax years beginning on or after January 1, 2018.  Examples include the exclusion from gross income of discharge of qualified principal residence indebtedness and, for purposes of itemized deductions, the treatment of mortgage insurance premiums as qualified residence interest.  Further guidance will be available once conformity issues have been determined.  MRS recommends waiting to file amended 2018 returns until the Governor’s proposal is acted upon by the Legislature

Downloadable Maine tax forms and instructions for 2019 and Maine estimated tax and withholding tables for 2020 that have been issued as of this date are consistent, except where otherwise specified in the forms and instructions, with conformity to the federal tax law changes noted above.

If the Legislature does not enact legislation conforming to those provisions, Maine Revenue Services will inform taxpayers of those tax items and what taxpayers will need to do to correctly file their original or amended tax returns or to make changes to 2020 Maine estimated tax and withholding.