Credit for Wellness Programs: Credit for Wellness Programs (2024)
Maine · Maine Revenue Services · Used for tax years 2024
This worksheet calculates Maine’s Credit for Wellness Programs for tax year 2024. It reports employee counts, wellness program expenditures, unused credit carried forward, and the credit claimed, and is enclosed with Form 1040ME, Form 1041ME, or Form 1120ME.
Who files this form
This worksheet is for claiming Maine’s Credit for Wellness Programs for tax year 2024. An employer with 20 or fewer employees, calculated on an average monthly basis, may qualify. The employer must employ one or more individuals who perform services for it within Maine.
Owners or beneficiaries of pass-through entities making eligible expenditures may claim a credit in proportion to their interests in the entity.
What you'll need
Have the following information ready to complete the worksheet:
- Taxpayer name and EIN or SSN.
- Employee count on an average monthly basis.
- Total expenditures during the taxable year to develop, institute, and maintain the wellness program.
- Any unused credit from line 5 of the 2023 credit worksheet carried forward to 2024.
- A brief description of the qualified wellness program and a brief list of its expenditures.
If claiming through a pass-through entity, provide its name, EIN or SSN, and your ownership percentage for the tax year. Attach a copy of the federal Schedule K-1 issued to you by the entity.
Maine Revenue Services may request additional information supporting the credit before processing the return.
How to file
Enclose the completed worksheet with Form 1040ME, Form 1041ME, or Form 1120ME.
Enter the credit from line 6 on the applicable return worksheet or schedule:
- Form 1040ME: Schedule A, Lines 7 and 19 Other Tax Credits Worksheet, line 8.
- Form 1041ME: Schedule A, line 11.
- Form 1120ME: Schedule C, line 1j.
If claiming through a pass-through entity, also attach the federal Schedule K-1 issued to you. The worksheet does not provide a mailing address or e-filing directions.
Common mistakes
- Missing the Maine income adjustment: Maine taxable income must be increased by any expenditures on line 3 that were used to reduce federal taxable income.
- Claiming more than your share through a pass-through entity: The credit is allowed in proportion to your interest. Enter the entity’s name, ID number, and your ownership percentage, and attach your federal Schedule K-1.
- Overlooking the carryforward limit: Unused credit amounts on line 3 may be carried forward for up to five years.
- Not being ready to support the claim: Maine Revenue Services may request additional information before the return can be processed.
Questions people ask
What counts as a wellness program?
A wellness program improves employee health, morale, and productivity. Examples include health education, behavioral change programs, and incentive awards for regular physical activity. Behavioral change programs include counseling, seminars, or classes on nutrition, stress management, or smoking cessation.
How much credit can I claim?
The credit is based on expenditures during the taxable year to develop, institute, and maintain a wellness program. The total credit, including carryovers, is limited to the lesser of $100 per employee or $2,000. It cannot reduce tax liability below zero. On line 6, enter the smallest of line 2, line 5, or $2,000.
Can unused credit be carried forward?
Yes. Unused credit amounts on line 3 may be carried forward for up to five years. For the 2024 worksheet, line 4 asks for unused credit from line 5 of the 2023 credit worksheet carried forward to 2024.
Can I claim a credit through a pass-through entity?
Yes. Partners, members, shareholders, beneficiaries, or other owners may claim a credit in proportion to their interests in an entity making eligible expenditures. Provide the entity’s name and ID number, your ownership percentage, and a copy of your federal Schedule K-1.