Maine has made the following changes to the 2023 Tax Year
Contributions to education savings plans income subtraction modification
- For tax years beginning with 2023, the income subtraction modification deduction for contributions to a qualified education plan has been reinstated.
Pension income deduction
- For tax year 2023, the pension income deduction for non-military retirement plan benefits is increased from $25,000 to $30,000. The deduction will increase to $35,000 for tax years after January 1, 2024. Benefits received under a military retirement plan, including survivor benefits, continue to be fully exempt from Maine income tax.
Expansion cannabis business expense subtraction modification
- Beginning in tax year 2023, the cannabis business expense subtraction modification is extended to include expenses related to carrying on a trade or business as a manufacturing facility.
Income and losses derived from sources on tribal land
- Beginning in tax year 2023, tribal members residing on tribal land and the estate of a decedent
Estimated tax/installment due dates
- The estimated tax installment payments for income taxes are due on the 15th day of the 4th, 6th, 9th, and 13th month following the beginning of the taxpayers year. For person who fish commercially that file a tax return and pay the full tax liability for the tax year no later than the first day of the 3rd month following the end of the tax year will, a penalty will not be accessed.
Voluntary checkoff for the easy enrollment health insurance program
- Beginning in tax year 2023, Maine included checkboxes to indicate health coverage for the taxpayer, the taxpayer's spouse, dependents, and if authorization to share information with Maine Health Insurance Marketplace.
Pine Tree Development Zone Program; sunset
- The law extends the sunset date for certification and benefits by one year. Businesses may not certify for the program after December 31, 2024 and benefits cease December 31, 2034 to include the tax credits.
Property tax fairness credit
- Beginning in tax year 2023, resident individuals who are veterans and 100% permanently and totally disabled are allowed an additional income tax credit equal to the amount of the property tax fairness credit, effectively doubling what they had previously qualified for.
COVID pandemic relief payment income subtraction modification
- For tax years 2022 and 2023, the amount of COVID pandemic relief payment received is deductible in calculating Maine taxable income, to the extent the payment is included in federal adjusted gross income.
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