Schedule A: Adjustments to Tax (2024)
Maine · Maine Revenue Services · Used for tax years 2024
Maine Schedule A (Form 1041ME) reports an estate’s or trust’s tax credit recapture amounts, refundable tax credits, and nonrefundable tax credits for 2024. It calculates tax adjustments and refundable credits to enter on Form 1041ME and must be enclosed with that form.
Who files this form
Schedule A is used with Form 1041ME for an estate or trust reporting tax credit recapture amounts or claiming Maine tax credits. Enclose it with Form 1041ME.
The schedule has separate sections for tax additions, refundable tax credits, and nonrefundable tax credits.
What you'll need
- Form 1041ME: Use the same name and the estate or trust's EIN on Schedule A.
- Tax credit worksheets: Complete and attach a worksheet for each credit claimed.
- Tax credit recapture records: For line 1, enclose supporting documentation or applicable worksheets showing how you calculated the amount.
- Affordable Housing Tax Credit certificate: For line 4, enclose the worksheet and a copy of the tax credit certificate from the Maine State Housing Authority.
- Carryforward records: For line 12, enclose worksheets or supporting documentation for each credit claimed.
Worksheets are available at maine.gov/revenue/tax-return-forms under Worksheets for Tax Credits. You can also request information by emailing estatetax@maine.gov.
How to file
Enclose Schedule A with your Form 1041ME, along with the required worksheets and supporting documents.
- Add refundable credits on lines 2 through 5. Enter the total on Schedule A, line 6, and Form 1041ME, line 7c.
- Add nonrefundable credits on lines 7 through 17 and enter the total on line 18.
- On line 19, enter Form 1041ME, page 1, line 4, plus Schedule A, line 1.
- On line 20, enter the smaller of line 18 or line 19.
- Subtract line 20 from line 1. Enter the result on Schedule A, line 21, and Form 1041ME, page 1, line 5. The result may be positive or negative.
Common mistakes
- Leaving out credit worksheets: The form specifically reminds you to complete and attach a worksheet for every credit claimed.
- Claiming too much in nonrefundable credits: The total credits claimed on lines 7 through 17 cannot exceed the Maine regular income tax otherwise due for the tax year.
Questions people ask
What goes on line 1?
Enter credits previously used to reduce Maine income tax that are now subject to recapture. Attach documentation or worksheets showing the calculation.
Where do refundable credits go on Form 1041ME?
Add Schedule A, lines 2 through 5. Enter the total on Schedule A, line 6, and Form 1041ME, line 7c.
Can total tax adjustments be negative?
Yes. Line 21 is line 1 minus line 20, and the form states that the result may be positive or negative.
Can I use line 5 for any refundable credit?
No. Line 5 is limited to qualified applicants certified by the Department of Economic and Community Development claiming the credit for major food processing and manufacturing facility expansion or the credit for paper manufacturing facility investment. Enclose the worksheet.