Maine has made the following changes to the 2021 Tax Year
Earned income credit
- For tax years beginning in 2021, the Maine earned income tax credit has been amended. Additionally, the Maine earned income tax credit is extended to individuals who file a federal income tax return using a federal individual taxpayer identification number assigned by the IRS on or before the due date for filing the return to the extent the taxpayer is otherwise qualified for the earned income tax credit.
Property tax fairness credit.
- For tax years beginning in 2021, the maximum property tax fairness credit is increased to $1,000 ($1,500 for individuals 65 years of age or older).
Employer credit for family & medical leave.
- For purposes of the employer credit for family and medical leave, the term "employees based in this state" is clarified to mean employees that perform more than 50% of employee-related activities for an employer at a location in Maine.
Credit for affordable housing.
- For tax years beginning on or after January 1, 2021, a taxpayer receiving a tax credit certificate for the taxable year from the Maine State Housing Authority for an affordable housing project located in Maine may claim a refundable income tax credit for that taxable year.
Credit for income taxes paid to other jurisdictions.
- For tax years beginning in 2021, a Maine resident who began teleworking in Maine due to the COVID-19 pandemic and who was performing the same services from a location outside of Maine immediately prior to the COVID-19 state of emergency declared by the Governor, or declared by the jurisdiction where the employee was performing the services, is allowed to claim the credit to the extent that 1) the services were performed during 2021 during the state of emergency period, 2) the other jurisdiction is asserting the income is sourced to that jurisdiction, and 3) the taxpayer does not qualify for an income tax credit in that jurisdiction for Maine income taxes paid as a result of the compensation.
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