1040C-ME: Composite Filing of Maine Income Tax for Nonresident Owners and Partnership Audit Return (2024)
Maine · Maine Revenue Services · Used for tax years 2024
Form 1040C-ME is Maine’s 2024 composite income tax return for nonresident owners of a pass-through entity. It reports composite income, tax, credits, payments, and any refund or amount due.
Who files this form
Form 1040C-ME is for composite filing of Maine income tax for nonresident owners. The form defines an “owner” as a partner or shareholder of a pass-through entity.
The form asks for both the number of owners participating in the composite filing and the total number of owners of the entity. The supplied text does not state who is required to participate.
What you'll need
The form calls for these schedules and supporting documents, as applicable:
- Schedule 1040C-ME-1: Enclose it with the return. Its line 7 supplies the composite income amount.
- Tax credit recapture worksheets: Enclose them when reporting tax credit recapture amounts.
- Form 1099ME: Enclose it when reporting Maine income tax withheld.
- Form 1040C-ME, Schedule A: Use line 17 for nonrefundable credits and line 5 for refundable credits.
- Form 2210ME: Enclose it when reporting a penalty for underpayment of estimated tax.
You will also need the entity’s name, federal EIN, mailing address, contact information, owner counts, and payment amounts. For direct deposit, provide the bank routing number, account number, and account type.
How to file
Online: File and pay on the Maine Tax Portal at revenue.maine.gov.
By mail without a check:
Maine Revenue Services
P.O. Box 1064
Augusta, ME 04332-1064
By mail with a check: Make the check payable to Treasurer, State of Maine and mail it with the return to:
Maine Revenue Services
P.O. Box 1065
Augusta, ME 04332-1065
Sign the return in the member/owner signature area and include the required supporting documents. Pay the total due in full with the return. The form warns that electronic payments may be required and refers filers to the instructions or MRS Rule 102.
Common mistakes
- Leaving out required enclosures: The form calls for Schedule 1040C-ME-1 and, when applicable, tax credit recapture worksheets, Form 1099ME, and Form 2210ME.
- Omitting real estate withholding payments: Include these in line 6b.
- Missing the negative sign on line 6e: If total payments and credits are negative, enter a minus sign and skip to line 7b.
- Using the wrong mailing address: Returns with a check go to P.O. Box 1065. Returns without a check go to P.O. Box 1064.
- Overlooking the electronic payment warning: The form says you may be required to make payments electronically.
Questions people ask
How is the tax on line 2 calculated?
The form directs you to multiply composite income on line 1 by 7.15% (0.0715). It also refers you to the instructions, which were not supplied here.
Can an overpayment be applied to next year’s estimated tax?
Yes. On the 2024 return, line 8a lets you credit an overpayment to 2025 estimated tax. Line 8b is for the amount to be refunded.
Can the refund be deposited directly into a bank account?
The form offers direct deposit for refunds of $20,000 or less. Enter the routing number and account number, select checking or savings, and check the box if the refund will go to an account outside the United States.
How do I mark an amended return?
Check box a. Also check box a-1 if the amended return reports federal modification amended return or alternative procedure report adjustments. Line 6d asks for any overpayment on the original return or as previously adjusted.
Can someone else discuss the return with Maine Revenue Services?
Yes. Select “Yes” in the Third Party Designee area and provide the designee’s name, phone number, and personal identification number.