In 2017, Maine Revenue Services processed over half a million individual income tax returns. While many taxpayers received refunds in just days, thousands saw theirs delayed or reduced due to avoidable errors, missing forms, or late filings that triggered penalties. Understanding how to file your Maine tax return accurately and on time is essential to keep more money and avoid unnecessary fees.

This guide walks you through every step of the 2017 Maine tax filing process, from determining whether you need to file to choosing the right payment option. It’s designed for individuals and small business owners who want clear, reliable information without the confusion of tax jargon. You’ll learn which forms to use, how to calculate your taxable income, the deductions and credits you might qualify for, and what to expect after filing.

Filing correctly is more than a formality—it’s a financial safeguard. Missing the April 17, 2018, due date could result in penalties of up to 25% of the unpaid tax, plus interest. Overlooking deductions like charitable contributions or the Property Tax Fairness Credit could mean leaving money on the table. Whether you plan to e-file for speed or mail in a paper return, this guide will help you file with confidence, avoid costly mistakes, and take full advantage of the benefits Maine tax law allows.

Who Needs to File a Maine Tax Return for 2017

Before starting the process, it’s essential to determine if you are required to file a 2017 Maine individual income tax return. The state’s filing rules depend on your residency status, income level, and specific tax circumstances.

Full-Year Maine Residents

If you lived in Maine for all of 2017 and were required to file a federal return, you must also file a Maine return. Even if you weren’t required to file federally, you may still need to file if you had Maine taxable income that results in a state tax liability.

Part-Year Residents

If you moved into or out of Maine during 2017, you are considered a part-year resident. You must file if your Maine-source income during the months you lived in the state creates a tax liability. This requires completing Schedule NR to allocate income between Maine and other states.

Nonresidents

Nonresidents must file if they earned Maine-source income—such as wages from a Maine employer, business income, or rental income from property located in the state—and that income results in a Maine tax liability.

Income Thresholds

You don’t have to file if your Maine income exceeds your standard deduction and personal exemption amount. For 2017:

  • Standard Deduction:
    • Single or married filing separately: $11,600
    • Head of household: $17,400
    • Married filing jointly or qualifying widow(er): $23,200
  • Personal Exemption: $4,050 per person
  • Additional exemption for age 65+ or blindness: $1,550 (unmarried) or $1,250 (married)

Special Situations

Certain taxpayers should file even if they are under the income threshold:

Determining your filing requirement early helps avoid last-minute stress and ensures you comply with state tax law. Even if you’re not required to file, you might benefit financially by submitting a return.

Key 2017 Maine Tax Law Changes

The 2017 tax year brought several vital updates to Maine’s individual income tax rules. Understanding these changes ensures you file correctly and take advantage of new benefits.

Repeal of the 3% Income Surcharge

The additional 3% tax on taxable income over $200,000, introduced in the prior year, was removed for 2017. This change lowered the tax bill for higher-income taxpayers compared to the preceding tax year.

New Workplace Disability Credit

Employers offering qualifying disability income protection plans can claim a $30 credit for each eligible employee. If you own a small business, this credit can reduce your Maine tax liability.

Increased Fairness Credits

The Sales Tax Fairness Credit and the Property Tax Fairness Credit saw higher maximum amounts and expanded income limits. More taxpayers are now eligible for these credits, making them valuable to review when completing your return.

Repeal of Adult Dependent Care Expense Exclusion

The exclusion for adult dependent care expenses was eliminated, which may impact taxpayers who previously reduced their taxable income using this benefit.

Homestead Modification Credit

A new credit of up to $9,000 is available for certain accessibility modifications to a home. Income limits apply, so review eligibility before claiming.

Restrictions on Married Filing Separately for the Property Tax Fairness Credit

Taxpayers using the married filing separately status are no longer allowed to claim this credit. Knowing these adjustments before you start can prevent errors and ensure you claim every benefit allowed under Maine tax law for 2017.

Important Deadlines and Late Filing Consequences

For the 2017 tax year, the due date to file your Maine individual income tax return was Tuesday, April 17, 2018. Filing on time is critical to avoid penalties, interest, and delays in receiving your refund.

Filing Deadlines

  • Original return: April 17, 2018
  • Extension to file: By submitting Form 1040EXT-ME, you could receive an automatic 6-month extension, moving your filing deadline to October 15, 2018.
    • Remember: An extension to a file is not an extension to pay. You must pay any estimated tax by April 17 to avoid penalties.

Penalties for Late Filing

  • Failure-to-file penalty: Typically, 25% of the unpaid tax.
  • Failure-to-pay penalty: 1% of the unpaid tax for each month or part of a month after the due date, up to a maximum of 25%.
  • Both penalties can apply simultaneously, increasing the total amount owed.

Interest Charges

Interest accrues on any unpaid tax from the original due date until the balance is paid in full. This can significantly increase your bill if payment is delayed for months.

Estimated Tax Penalty

You may incur an estimated tax penalty if you do not have enough tax withheld or fail to make the required estimated tax payments. This applies to many self-employed individuals, small business owners, and taxpayers with income not subject to withholding, such as dividends or rental income.

Why Meeting the Deadline Matters

Missing the filing date triggers financial penalties and delays in refunds, especially for paper-filed returns. Filing early gives you more time to fix any issues if your return is rejected and ensures you receive your refund faster.

Gathering Required Documents 

Before you begin completing your Maine individual income tax return for 2017, make sure you have all the documents and records you’ll need. Missing information can cause errors, lead to a rejected return, or delay your refund.

Essential Income Documents

  • W-2 forms from every employer you worked for in 2017
  • 1099 forms for interest, dividends, self-employment earnings, retirement distributions, or other income
  • 1099-ME forms showing Maine income tax withheld
  • If applicable, records of alimony received, rental income, or farm earnings.

Federal and Prior Year Returns

  • A copy of your completed federal return (Form 1040, 1040A, or 1040EZ) for 2017
  • Your previous year’s Maine tax return for reference, especially for carryover deductions or credits

Deduction and Credit Records

  • Receipts or statements for charitable contributions, medical expenses, or other itemized deductions
  • Property tax bills and rent receipts for credits such as the Property Tax Fairness Credit
  • Documentation for any eligible tax credits, including education or energy-related credits

Other Information

  • Your Social Security number and those of any dependents
  • Direct deposit information for faster refunds
  • If self-employed or running a small business, keep records of expenses, invoices, and estimated tax payments.

Organizing these documents before you start will save time and help ensure your return is accurate. It also reduces the chance of overlooking deductions or credits that could lower your taxable income and increase your refund.

Step-by-Step Process to Complete Your Maine Tax Return

Filing your 2017 Maine individual income tax return involves more than just entering a few numbers. Following a structured process will help ensure accuracy, prevent rejections, and make sure you claim all the deductions and credits you’re entitled to.

Step 1: Complete Your Federal Return First

  • Your Maine return starts with information from your federal return. Finalize your federal Form 1040, 1040A, or 1040EZ before moving to Form 1040ME.
  • Federal adjusted gross income (AGI) is the foundation for calculating Maine taxable income.

Step 2: Personal Information and Filing Status

  • Print or type your name, Social Security number, and mailing address.
  • Indicate your filing status: single, married filing jointly, married filing separately, head of household, or qualifying widow(er).
  • Select your residency status: resident, part-year resident, or nonresident.

Step 3: Report Income

  • On Line 14 of Form 1040ME, enter your federal AGI.
  • Complete Schedule 1 if you have income modifications:
    • Additions: Income taxed by Maine but not federally (e.g., specific municipal bond interest).
    • Subtractions: Income taxed federally but not by Maine (e.g., some Social Security benefits).
  • Your Maine adjusted gross income goes on Line 16.

Step 4: Choose Your Deductions. 

  • The standard deduction amounts for 201 are $11,600 (single), $17,400 (head of household), and $23,200 (married filing jointly/qualifying widow(er)).
  • Itemized deductions: Complete Schedule 2 if claiming deductions such as medical expenses, mortgage interest, or charitable contributions.
  • Compare both to see which lowers your taxable income more.

Step 5: Claim Personal Exemptions

  • $4,050 per person in 2017.
  • Additional amounts for age 65+ or blindness: $1,550 (unmarried) or $1,250 (married).

Step 6: Calculate Your Tax

  • Subtract deductions and exemptions from your Maine AGI to get taxable income.
  • Use Maine’s 2017 tax tables or rate schedules to find your tax amount.

Step 7: Apply Credits

  • Complete Schedule A for credits such as the child care credit or education credit.
  • Use Schedule PTFC for the Property Tax Fairness Credit and Schedule STFC for the Sales Tax Fairness Credit if you qualify.

Step 8: Record Payments and Withholding

  • Include Maine income tax withheld (from W-2s, 1099s, and 1099MEs) and any estimated tax payments made during the year.

Step 9: Determine Refund or Balance Due

  • If payments exceed your tax liability, you get a refund.
  • If you owe, review payment options to avoid further penalties and interest.

Step 10: Sign and Review

  • Double-check all figures, attach required schedules, sign and date your return, and keep copies for your records.

Filing Methods: E-Filing vs. Paper Filing 

Choosing between e-filing and paper filing can affect the speed with which your return is processed, the security of your personal information, and the time you receive your refund.

E-Filing

E-filing is the preferred method for most taxpayers because it is faster, more accurate, and generally more secure than mailing paper returns. Maine Revenue Services offers a free online filing system for eligible individuals, and many commercial companies provide e-filing services that integrate federal and state returns.

Benefits of E-Filing

  • Refunds are issued in as little as 7–10 business days when using direct deposit.
  • Built-in error checks reduce the chance of a rejected return.
  • Secure electronic submission protects sensitive data from being lost or stolen in transit.
  • You will receive immediate confirmation that your return has been filed and accepted.

Paper Filing

Paper filing can be necessary in certain situations, such as when submitting special forms or supporting documents that cannot be transmitted electronically. However, it can increase the cost in time and effort. Processing may take 6–8 weeks, and errors are more common without automated validation.

Mailing Your Return

If you mail your return, use the correct address for your final filing status:

  • Expecting a refund → Refund address
  • Balance due → Payment address

Include all required schedules and signatures, and make sure your tax withheld information is correct. Incomplete or unsigned returns may be returned to you, causing delays.

Which Method Should You Choose?

E-filing is the best payment option for most taxpayers due to speed, security, and reliability. Paper filing remains an option but should only be used when electronic submission is impossible.

Payment Options and Plans 

If your 2017 Maine individual income tax return shows a balance due, you have several payment options to settle your bill and avoid additional penalties or fees. Choosing the correct method depends on your financial situation and how quickly you can pay.

Online Payment

Maine’s official system allows you to make secure payments directly from your bank account (ACH) or by credit/debit card. Bank transfers usually cost no extra, while card payments may incur convenience fees. Paying online ensures your account is updated quickly and reduces the risk of late date postings.

Payment by Mail

If you mail a payment, make checks or money orders payable to “Treasurer, State of Maine” and include your name, Social Security number, and tax year on the memo line. Avoid sending cash through the mail for security reasons.

Payment Plans

If you cannot pay the full balance immediately, you can request payment plans from Maine Revenue Services. These allow you to spread the bill over several months, helping you stay within your budget while meeting your obligations. Interest will continue to accrue on the unpaid balance until it is paid in full.

Estimated Tax and Penalties

If you did not have enough tax withheld during the year or did not make sufficient estimated tax payments, you may face an estimated tax penalty. This often affects business owners, self-employed taxpayers, and those with substantial income from dividends or other non-wage sources. Making timely estimated payments can prevent this penalty in the preceding tax year and beyond. Being proactive with payments and setting up arrangements promptly can protect you from escalating penalties, interest, and possible collection actions.

Tracking Your Refund or Balance Due

Once your 2017 Maine tax return has been filed, you can monitor the status of your refund or confirm whether you still owe a payment.

Tracking Your Refund

Maine Revenue Services offers a 24/7 online “Where’s My Refund?” tool. To use it, you’ll need your Social Security number, filing status, and exact refund amount. The tool provides updates on processing and the expected deposit or check mailing date.

If your refund is delayed, you may receive a letter requesting additional documentation. Respond promptly to avoid further delays or possible rejected claims.

Processing Times: 

  • E-filing with direct deposit: about 7–10 business days.
  • E-filing with paper check: about 2–3 weeks.
  • Paper filing: 6–8 weeks or longer if errors occur.

Checking a Balance Due

You can verify the bill online or by calling Maine Revenue Services if you have a balance due. Doing so can help you avoid worrying about missed payment deadlines.

Interest and Fees

Unpaid balances continue to accrue interest from the original due date until paid in full. Additional fees may apply if collection actions become necessary. By tracking your account promptly and responding to any notices, you can reduce processing time, protect your refund, and resolve any issues before they lead to penalties or added costs.

Common Mistakes to Avoid

Even experienced taxpayers make errors that can slow refunds, increase taxable income, or trigger unnecessary penalties. Knowing these mistakes can help you file a cleaner, more accurate return.

Missing or Incorrect Information

  • Forgetting to sign your return or leaving out your signature will result in a rejected filing.
  • Entering the wrong Social Security number for yourself or a dependent.

Reporting Errors

  • Misstating wages, dividends, or other income can cause discrepancies with IRS and Maine Revenue Services records.
  • Failing to adjust for certain deductions or credits as Maine tax law requires.

Overlooking Deductions and Credits

  • Not claiming eligible itemized deductions, such as charitable contributions, mortgage interest, or property taxes.
  • Forgetting to complete required schedules for credits like the Property Tax Fairness Credit.

Late Filing and Payment

  • Missing the due date without a valid exception can result in a penalty and additional interest.
  • Delaying payment until after the due date without arranging a payment plan.

Form and Schedule Issues

  • Submitting the wrong form or leaving out supporting documents.
  • Not following the instructions under the relevant legislative act, which can change filing rules from year to year.

Carefully completing your return, double-checking all entries, and attaching required documentation will help you avoid these pitfalls and keep more of your refund.

Tips for a Smooth Filing Experience

Filing your 2017 Maine individual income tax return doesn’t have to be stressful. A few practical steps can help you determine the best approach and reduce the risk of errors or delays.

File Early

Early filing allows time to correct mistakes if your return is rejected. It also helps you avoid last-minute worry and ensures faster refunds, especially if you choose e-filing with direct deposit.

Organize Your Records

Before you start, gather all W-2s, 1099s, and receipts for itemized deductions like charitable contributions. Have the documentation ready if you received alimony, farm income (significant for farmers), or other special earnings.

Double-Check Your Work

Verify calculations for taxable income, deductions, and credits. Ensure your status, Social Security numbers, and form selections are accurate. Errors here can delay refunds or result in additional penalties and interest charges.

Use Reliable Services

Consider professional services or reputable tax preparation software, especially if you are a small business owner or have complex income.

Keep Copies

Retain copies of your federal return, Maine return, and all supporting documents. You may need them if questions arise in the preceding tax year or during an audit. By following these tips, you can protect your refund, comply with Maine tax law, and avoid the unnecessary costs and stress of avoidable mistakes.

Frequently Asked Questions (FAQs)

Who is required to file a Maine individual income tax return for 2017?

Anyone who was a resident, part-year resident, or nonresident with Maine-source income that creates a tax liability may need to file a 2017 return. Even if your income falls below the filing threshold, submitting a return can still be beneficial if you are due a refund or want to claim refundable credits like the Sales Tax Fairness Credit. Certain corporations operating in Maine have separate filing obligations under business tax rules, distinct from individual filings.

Can I deduct charitable contributions on my 2017 Maine tax return?

If you itemize deductions on your Maine return, charitable contributions to qualifying organizations can be deducted, provided you have proper documentation such as receipts or written acknowledgments. Eligible donations may include cash, property, or mileage driven for charitable purposes. This deduction can lower your taxable income and, when combined with other itemized deductions, may significantly reduce your tax bill.

What if I moved to or from Maine in 2017, such as relocating from California?

If you moved to or from Maine during 2017 — whether from a neighboring state or as far away as California—you are considered a part-year resident. You must file using Schedule NR to allocate income between Maine and the other state. In many cases, you may be eligible for a credit for taxes paid to the other state, which helps prevent double taxation.

How are estates handled for Maine tax purposes?

Estates with Maine-source income may have a filing requirement separate from an individual return. The estate’s representative must complete the appropriate Maine and federal forms, report all taxable income, and pay any balance due by the deadline to avoid penalties and interest. This process ensures the estate meets all state obligations before distributions to beneficiaries.

Does Maine follow all IRS rules for deductions and credits?

Maine’s tax system starts with your federal adjusted gross income, but not all IRS rules apply the same. The state has modifications that can add or subtract income items and credits unique to Maine. Always review the instructions for Form 1040ME and related schedules to ensure you apply federal and state rules correctly.