Maine allows the following Subtractions to the Federal Adjusted Gross Income on the Maine return:
U.S. Government Bond Interest
Taxpayer may deduct bonds, treasury bills and notes of the United States Government that are included in the taxpayers federal adjusted gross income.
State Bond Interest
Interest from Maine municipal general obligations and private activity bonds and bonds issued by the Maine airport authority that are included in your federal adjusted gross income
Pension Income Deduction
Enter the pension income deduction from the Worksheet located on Page 18, line 7 from the Maine Individual Income Tax Booklet.
Pre-taxed State Retirement System Pickup Contributions
If the taxpayer is receiving retirement benefits from the Maine Public Employees Retirement Systems (MainePERS), and retired after 1988, deduct the amount in box 14 from the amount in box 2a on Form 1099-R issued by MainePERS. Also list any MainePERS rollover amounts previously taxed by the state, whether or not included in federal adjusted gross income
Enter your share of a fiduciary adjustment relating to income from an estate or trust. Attach a copy of your federal Schedule K-1.
Medical Use of Marijuana Business Expense
Subtract the amount of medical marijuana business expenses incurred by a registered dispensary or caregiver allowed on the Maine state tax return but were not allowed to be subtracted on the federal return.
Other Maine Subtractions from Income
DO NOT enter Non-Maine income on this line. Enter only amounts included in federal adjusted gross income.
- net operating losses carried forward from previous tax years
- military compensation received by a nonresident service member
- active duty military pay earned by a Maine resident service member for service performed outside Maine
- to the extent not included in pension deduction, military annuity payments made to a survivor of a deceased member of the military
- recovery amounts included on federal Form 1040, line 21 related to items previously deducted on your federal return but not on your Maine return in an earlier year
- discharge of indebtedness amounts included in federal adjusted gross income deferred for federal tax purposes but not Maine tax purposes during 2009 or 2010
- Contributions to Qualified Tuition Programs - 529 Plans
- Student loan payments made by your employer under the Maine educational opportunity program
- the amount of the reduction in your salaries and wages expense deduction directly related to claiming the federal Work Opportunity Credit or Empowerment Zone Credit
- Holocaust victims settlement payments that are included in federal adjusted gross income
- Family Development Account proceeds
- earnings from fishing operations contributed to a capital construction fund
- Northern Maine Transmission Corporation investment income
- Municipal property tax benefits for senior citizens
- Maine Waste Management & Recycling Program to the extent included in federal adjusted gross income
- Income, gain, interest, dividends, royalties and other items of income of a financial institution subject to the Maine franchise tax that are included in your federal adjusted gross income
- Total of capital gains and ordinary income resulting from depreciation recapture pursuant to Code sections 1245 and 1250 realized on the sale of multifamily affordable housing property
- Maine seed capital credit distributions from a private venture capital fund
- Sale of eligible timberlands included in federal adjusted gross income.
- New markets capital investment credit included in federal adjusted gross income
For additional information, please refer to the Maine Individual Income Tax Booklet.