How to File Your Maine Tax Return for 2020

Filing your Maine tax return for the 2020 tax year is essential to ensure you meet state requirements and receive any refund you are owed. Maine generally imposes an individual income tax on residents and certain nonresidents with Maine-source income. For 2020, the state followed most federal income tax return rules but had its own rates and filing criteria, so reviewing your tax information before getting started is important.

If you earned income in Maine during 2020, your filing status, adjusted gross income, and eligibility for deductions or credits will determine whether you need to file. This applies whether you complete your taxes or work with a tax preparer. Even if you have already filed your federal tax return, you may still need to submit a state return to claim certain benefits, such as the child tax credit or other state-specific programs.

Due to COVID-19, Maine extended the deadline to file and pay 2020 taxes to May 17, 2021, matching the federal extension. Filing on time helps you avoid penalties, claim all eligible deductions, and access the maximum refund available. In this guide, we’ll walk through the process step-by-step, explain available filing options, and provide tips so you can prepare your return with confidence and minimal hassle.

Overview of Maine Income Tax for 2020

Maine imposes an individual income tax on residents and certain nonresidents with Maine-source income. For the 2020 tax year, rates ranged from 5.8% to 7.15%, applied on a graduated scale based on taxable income. Your Maine tax return calculation generally starts with figures from your federal income tax return, then applies state-specific adjustments and credits.

Key Facts About Maine’s 2020 Income Tax

• Maine taxes apply to all residents who meet the state’s filing thresholds and nonresidents who earn income within the state.
  
  
• Your filing status, adjusted gross income, and deductions determine the amount of tax you owe.
  
  
• Taxable income is based on your federal adjusted gross income, with Maine-specific additions and subtractions.
  
  
• Credits such as the property tax fairness and child tax credit can reduce the total amount due.
  
  
• Even if you do not owe taxes, you may want to file to claim a refund or certain credits.

Minimum Filing Requirements for 2020

You must file a Maine individual income tax return if your income meets or exceeds the sum of:

1. Your Maine standard deduction amount, and
   
   
2. Your Maine personal exemption amount.

These amounts depend on your filing status and may be reduced if your income exceeds certain limits. Residents not required to file a federal tax return may still have to file a Maine tax return if they meet the state’s income thresholds.

COVID-19 Extension for 2020

Due to the pandemic, the 2020 tax filing and payment deadline was extended from April 15, 2021, to May 17, 2021. This extension applies to all taxpayers, giving filers additional time to prepare their returns, gather necessary tax information, and ensure accuracy when claiming deductions or credits.

Who Needs to File a Maine Tax Return

Whether you are a full-year resident, part-year resident, or nonresident, your obligation to file for the 2020 tax year depends on your income, residency status, and eligibility for certain credits. Even if you have already submitted your federal income tax return, you may still need to file a Maine individual income tax return to meet state requirements or claim a refund.

Full-Year Residents

If you lived in Maine for the entire year and your income meets the state’s filing threshold, you must file a Maine tax return. This applies regardless of whether your wages were earned in Maine or another state.

Part-Year Residents

You are considered a part-year resident if you moved into or out of Maine during 2020. You must file a Maine return if the income earned during your time in Maine meets the filing requirement.

Nonresidents

If you did not live in Maine during 2020 but earned Maine-source income—such as wages from a Maine employer or rental income from Maine property—you must file a Maine tax return if your income meets the threshold.

“Safe Harbor” Residents

If you qualify as a “Safe Harbor” resident, Maine treats you as a nonresident for tax purposes. However, you must still file a return if you earned enough income in Maine to meet the state’s filing requirement.

Special Situations

Even if you are not required to file based on income, you may submit a return to claim a refund or take advantage of credits such as the child tax credit or the property tax fairness credit. Students, retirees, and part-time workers may also meet the criteria to file, depending on their earnings.

Key Changes for the 2020 Tax Year

Maine introduced several changes for the 2020 tax year that could affect how you prepare your return. These adjustments may impact your eligibility for certain credits, the deductions you can claim, or the forms you are required to use.

• The Property Tax Fairness Credit was increased to 100% of the benefit base above 5% of your income, with a maximum of $750 for most filers and $1,200 for individuals aged 65 or older.
  
  
• The Earned Income Tax Credit increased from 5% to 12% of the federal credit for most eligible filers and 25% for individuals without a qualifying child. The eligibility rules were expanded to include certain taxpayers aged 18 to 24 without qualifying children.
  
  
• Earnings from an Achieving a Better Life Experience (ABLE) account are now deductible when calculating Maine taxable income, which may lower your tax liability.
  
  
• The Maine Capital Investment Credit was reduced to 1.2% for qualifying property placed in service during the 2020 tax year.
  
  
• Maine's standard deduction is now equal to the federal standard deduction, subject to Maine’s income-based phase-out rules.
  
  
• A married taxpayer can now claim the personal exemption for a spouse with no gross income, even when filing separately.
  
  
• The requirement to use a table for use tax reporting on individual income tax returns was repealed, though taxpayers can still voluntarily report unpaid use tax.

Forms You’ll Need

To complete your Maine tax return for 2020, you will need the appropriate forms and documentation to support your income, deductions, and credits. The forms you use will depend on your residency status, income types, and any special tax situations you have.

Main Form

• Form 1040ME is the primary Maine individual income tax return form, used by full-year residents, part-year residents, and nonresidents.

Common Schedules

• Schedule 1A reports additions to your federal adjusted gross income required under Maine law.
  
  
• Schedule 1S reports subtractions from your federal adjusted gross income under Maine tax rules.
  
  
• Schedule A claims various Maine tax credits, such as the property tax fairness or the earned income tax credit.
  
  
• Schedule PTFC/STFC is used to apply for the Property Tax Fairness Credit or the Sales Tax Fairness Credit.
  
  
• Schedule NR is used by nonresidents and “Safe Harbor” residents to report Maine-source income and calculate the portion subject to Maine tax.
  
  
• Schedule NRH is used by part-year residents, nonresidents, or “Safe Harbor” residents who are married and filing jointly to allocate income properly.

Additional Items You May Need

• Copies of W-2 forms from employers showing your wages and Maine income tax withheld.
  
  
• Copies of 1099 forms for other types of income, such as interest, dividends, or contract work.
  
  
• Records of deductible expenses, contributions, and other tax information needed to complete your return accurately.
  
  
• A completed federal income tax return is the starting point for calculating your Maine return.

Step-by-Step Filing Instructions

A transparent process can help you accurately and timely prepare your Maine tax return. The steps below outline how to gather your tax information, complete your forms, and submit your return for the 2020 tax year.

1. Determine your residency status by reviewing Maine’s definitions for full-year, part-year, nonresident, and “Safe Harbor” residents. Your residency will affect which forms you use and how your income is taxed.
   
   
2. Gather all required documents, including your completed federal income tax return, W-2 forms from employers, 1099 forms for other income, and records of deductions, contributions, and eligible expenses.
   
   
3. Complete your federal income tax return first because your federal adjusted gross income is the starting point for calculating your Maine individual income tax return.
   
   
4. Fill out Form 1040ME, providing your personal information, filing status, and residency status. Include all sources of income and make adjustments as required by Maine law.
   
   
5. Complete any necessary schedules, such as Schedule 1A or 1S for income modifications, Schedule A for credits, or Schedule PTFC/STFC for the property tax fairness credit.
   
   
6. Calculate your taxes owed or refund due using Maine’s tax tables and applying any eligible deductions and credits.
   
   
7. Enter any payments you have made, including withholding reported on W-2 or 1099 forms and estimated tax payments.
   
   
8. Review your return for accuracy, checking all Social Security numbers, calculations, and attachments to avoid mistakes that could delay your refund.
   
   
9. Sign and date your return before submitting it electronically or by mail.

Filing Methods

Maine offers both electronic and paper filing options for the 2020 tax year. Choosing the correct method can help you meet the deadline, reduce errors, and access your refund faster.

Electronic Filing Options

• You can file through the Maine Tax Portal, which allows you to submit your return online and claim credits such as the property tax fairness credit. This option is free for many eligible filers.
  
  
• You can also use Maine Modernized e-File (MeF) by working with a tax preparer or using approved tax software. This method can help reduce errors because the system checks for common mistakes before submission.
  
  
• The IRS recommends e-filing when possible because it is faster, more secure, and typically results in quicker refunds through direct deposit.

Paper Filing

• You can print and complete the necessary forms for your Maine tax return, sign them in ink, and attach all required W-2 and 1099 forms.
  
  
• Mailing addresses differ depending on whether you expect a refund, owe a balance, or file with no payment due. Maine Revenue Services provides these addresses.
  
  
• Paper filing may take longer to process, so it is essential to allow additional time for delivery and handling, especially close to the filing deadline.

Making Payments

You have several payment options if your completed Maine tax return shows you owe money for the 2020 tax year. Paying on time helps you avoid penalties and interest.

Electronic Payment Options

• Maine EZ Pay allows you to pay directly from your bank account through the state’s secure online payment system.
  
  
• Direct debit is available when e-filing, letting you schedule your payment for a specific date.
  
  
• ACH credit is an option for larger businesses or taxpayers who prefer to initiate payments through their financial institution.

Paper Payment Options

• You can pay by check or by money order made payable to “Treasurer, State of Maine,” and include your name, address, phone number, and tax year on the payment.
  
  
• If mailing your payment separately from your return, use Form 1040ME-PV (Payment Voucher) to ensure proper processing.

Payment Plans

• If you cannot pay the full amount you owe, you can request a payment plan by checking the payment plan box on your return or contacting Maine Revenue Services directly.
  
  
• A payment plan allows you to make smaller payments over several months, though interest and penalties may still apply until the balance is paid in full.

Tracking Your Refund

Once you have filed your Maine tax return for the 2020 tax year, you can track the status of your refund to know when to expect your payment.

• You can check your refund status online by visiting the Maine Revenue Services website and using the “Where’s My Refund?” tool.
  
  
• You may also call the refund status phone line for updates during business hours.
  
  
• Refund information is updated nightly, so changes will typically appear the following day.
  
  
• E-filed returns with direct deposit are usually processed faster, often within a week, while paper returns may take six to eight weeks.
  
  
• Ensure your bank account and routing numbers are correct to avoid delays in receiving your deposit. Some financial institutions do not accept joint refunds into single-name accounts.

Common Filing Mistakes to Avoid

Avoiding common mistakes when completing your Maine individual income tax return can help you prevent delays, penalties, and the need to amend your return later.

• Failing to sign and date your return can make it invalid and delay processing.
  
  
• Entering incorrect Social Security numbers can cause your refund to be delayed or your return to be rejected.
  
  
• Making math errors or entering figures incorrectly can lead to incorrect tax calculations and adjustments by Maine Revenue Services.
  
  
• If you forget to attach the required W-2 and 1099 forms when filing by mail, your return may be incomplete.
  
  
• Omitting necessary schedules for deductions, credits, or residency adjustments can affect your eligibility for benefits and your total tax owed.
  
  
• Using the wrong mailing address for paper returns can delay or result in misdelivery.

Final Filing Checklist

Reviewing your return before submission ensures you have included all necessary information and documents. A complete and accurate return reduces the likelihood of issues and helps you get your refund faster.

• Confirm that all sections of Form 1040ME are complete and accurate.
  
  
• Ensure all W-2 and 1099 forms are attached if you are filing by mail.
  
  
• Verify that schedules for deductions, credits, and residency adjustments are completed and included as required.
  
  
• Check that your filing status matches your Maine and federal income tax returns.
  
  
• Confirm that your bank account details for direct deposit are correct if you expect a refund.
  
  
• Keep copies of all forms, schedules, and receipts for your records if you need them in future tax years.

Frequently Asked Questions

What is the deadline to file my Maine tax return for the 2020 tax year?

For the 2020 tax year, the deadline to file your Maine tax return was extended to May 17, 2021, matching the federal income tax return extension. The IRS recommends filing as early as possible to avoid delays and to claim your refund quickly. If you missed the date, you should file as soon as possible to reduce penalties and interest on any income tax owed.

Do I need to file a Maine individual income tax return if I already filed a federal tax return?

You may still need to file a Maine individual income tax return even if you have already submitted your federal tax return. Filing requirements depend on residency status, income level, and credit eligibility. Your adjusted gross income from the federal return is the starting point for your state tax filing process.

Can I claim the child tax credit on my Maine tax return?

While the federal child tax credit is claimed on your federal income tax return, Maine has its own credits that may apply. If you meet the eligibility requirements, you can claim state-specific credits to lower your tax liability. A tax preparer or online guidance from Maine Revenue Services can help determine whether you qualify to claim these benefits.

What are my filing options for the 2020 Maine tax return?

You can file electronically using the Maine Tax Portal or approved tax preparation software, which the IRS recommends for faster processing and direct deposit of refunds. If you prefer to mail your forms, you can choose paper filing; however, please note that processing will take longer. Filers can prepare their taxes, work with a tax preparer, or seek expert help to complete the process correctly.

How can I get the maximum refund from my Maine tax return?

To maximize your refund, ensure all eligible deductions, credits, and expenses are included on your Maine tax return. Keep accurate records of wages, contributions, and receipts, and review your filing status to determine if it is correct. Completing your tax filing early, using direct deposit to your bank account, and following IRS and state guidance can help you access your money sooner.

What should I do if I make a mistake on my original return?

If you discover a mistake after submitting your original return, you should file an amended Maine tax return as soon as possible. This may involve submitting corrected forms and providing updated tax information to Maine Revenue Services. Keeping copies of all records, following the correct process, and consulting tax experts can help ensure your amended return is processed accurately and without unnecessary hassle.

What is the process for paying taxes if I owe money on my Maine tax return?

If your Maine tax return shows that you owe taxes, you can pay electronically through Maine EZ Pay, by direct debit when e-filing, or through your financial institution. You may also mail a check or money order with the appropriate forms. Payments can be made as a whole or through a payment plan if you meet the eligibility requirements set by Maine Revenue Services.