Schedule 1S: Income Subtraction Modifications (2025)
Maine · Maine Revenue Services · Used for tax years 2025
Maine Schedule 1S reports subtractions from federal adjusted gross income on your 2025 Form 1040ME. It includes worksheets for the pension income deduction and totals the subtraction amounts to enter on Form 1040ME, line 15b.
Who files this form
Use 2025 Schedule 1S with Form 1040ME to report the income subtraction modifications listed on the schedule.
These include qualifying amounts such as U.S. government bond interest, state income tax refunds, Social Security and Railroad Retirement benefits included in federal adjusted gross income, and the pension income deduction. The schedule also lists other military, education, business, and income-related subtractions.
Enclose Schedule 1S with your Form 1040ME.
What you'll need
Have your Form 1040ME available, including the name or names shown on it and your Social Security number.
Depending on the subtraction you claim, the form requires:
- Pension income deduction, line 4: Enclose the Worksheet for Pension Income Deduction and copies of your 1099 forms with Form 1040ME. The worksheet also uses pension amounts from federal Form 1040 or 1040-SR, lines 4b and 5b.
- Fiduciary adjustment, line 9: Attach a copy of your federal Schedule K-1.
- Cannabis business expenses, lines 11 and 12: Enter your registration number or sales tax number.
- Pass-through financial institution income, line 21: Enter the financial institution's EIN.
- Enrolled tribal members in Maine, line 25: Attach Schedule ETM.
- Other subtractions, line 26: Attach worksheets.
How to file
Complete the applicable subtraction lines on both pages of Schedule 1S. Add lines 1 through 26 and enter the total on line 27 and Form 1040ME, line 15b.
Enclose Schedule 1S and the required attachments with Form 1040ME.
The supplied form does not give a mailing address or e-filing directions. It directs readers to maine.gov/revenue/tax-return-forms for more information.
Common mistakes
- Entering dollar signs, commas, or decimals: The schedule says not to enter these.
- Mixing military and non-military pensions: Enter eligible non-military pension benefits on worksheet line P1 and eligible military retirement pay on line P9. Include only deductible pension benefits that are not specifically excluded.
- Using the spouse column incorrectly: Use it only if you are married filing jointly and your spouse separately earned an eligible pension.
- Skipping the pension phaseout worksheet: For 2025, you must complete it if Form 1040ME, line 14 exceeds $125,000 for single or married filing separately, $187,500 for head of household, or $250,000 for married filing jointly or qualifying surviving spouse.
- Leaving out nontaxable benefits on pension worksheet line P3: That line requires all Social Security and Railroad Retirement benefits received, whether taxable or not.
Questions people ask
Can I subtract a state income tax refund?
Only if it was included in your federal adjusted gross income. Report it on line 2.
What is the limit for 529 plan contributions?
Line 8 limits the subtraction for contributions to Qualified Tuition Programs, or 529 plans, to $1,000 per beneficiary.
What if my pension deduction includes military retirement pay?
Check the box below line 4 if that line includes military retirement pay from line P10 of the Worksheet for Pension Income Deduction.
What amount goes on the enrolled tribal members line?
If Schedule ETM, column C, line 5 is greater than zero, enter that amount on Schedule 1S, line 25. Otherwise, leave line 25 blank. Attach Schedule ETM.