Eligible taxpayers may claim a tax credit equal to 25% of the applicable percentage of adult dependent care expenses paid for adult day care, hospice services and respite care during the taxable year to the extent the expenses are not used to calculate the federal child and dependent care credit. The expenses that may be used to calculate the credit are limited to $3,000 for one qualifying individual or $6,000 for two or more qualifying individuals and the applicable percentage is the percentage used to calculate the federal child and dependent care credit. The credit is refundable up to $500.
Who is a qualifying individual for this credit?
Unless otherwise indicated, the amounts shown below apply to tax years beginning in 2023. See the worksheet for each tax year for the amounts applicable to that tax year.
A qualifying individual is an individual that meets all of the following:
- is a qualifying person for purposes of the federal credit for child and dependent care expenses;
- was at least 21 years of age as of the last day of your tax year;
- is a disabled spouse or other disabled person you claim as a dependent* or could claim as a dependent except that:
- the disabled person had federal gross income of $4,700 or more;
- the disabled person filed a joint income tax return; or
- you or your spouse, if filing jointly, could be claimed as a dependent on another individual taxpayer’s 2023 return;
- the disabled person was not physically or mentally able to care for himself or herself; and
- the disabled person lived with you for more than half of your tax year beginning in 2023.
*For more information on who is a dependent, see federal Publication 501, Dependents, Standard Deduction, and Filing Information.
What are considered to be qualifying expenses?
Qualified expenses include amounts paid during the tax year for adult day care, hospice services and respite care for a qualifying individual to the extent the expenses were not used to calculate the federal child and dependent care expense credit. For purposes of the credit:
- Adult day care means an ongoing program of health, social, maintenance and rehabilitative services available to a qualifying individual needing this level of service, as determined by an assessment of their functional abilities and need for health and social services (22 M.R.S. § 6202(1)).
- Hospice services means a range of interdisciplinary services provided on a 24-hours-a-day, 7-days-a-week basis to a qualifying individual who is terminally ill and that individual’s family (22 M.R.S. §8621(11)).
- Respite care means temporary care-giving to a qualifying individual for the purpose of relieving that individual’s family or another primary care-giver.
See the applicable Worksheet for Adult Dependent Care Expenses for each tax year to see if you qualify:
How does someone apply for the adult dependent care credit?
To claim the credit, file Form 1040ME, Schedule A, and the Worksheet for Adult Dependent Care Credit.