Student Loan Repayment Tax Credit: Student Loan Repayment Tax Credit (2024)
Maine · Maine Revenue Services · Used for tax years 2024
The 2024 Maine Student Loan Repayment Tax Credit Worksheet calculates a refundable credit for Maine resident and part-year resident individuals. It reports earned income, eligible education loan payments, and unused educational opportunity tax credit carryforwards, and is enclose
Who files this form
Use this worksheet to claim the 2024 Maine Student Loan Repayment Tax Credit if you made eligible education loan payments directly to the lender and/or have eligible unused educational opportunity tax credit (EOTC) carryforwards.
For tax year 2024, you must:
- Have earned an associate, bachelor’s, or graduate degree after 2007 from an accredited Maine or non-Maine community college, college, or university.
- Have been a Maine resident during the tax year.
- Have at least $13,244 of your own earned income during the tax year.
For part-year residents, only eligible loan payments made while a Maine resident qualify. If both spouses qualify on a joint return, each must complete a separate worksheet.
When it's due
Unused EOTC carryforwards may be claimed only for tax years beginning before January 1, 2027. They are also subject to a 10-year carryforward limit.
The worksheet does not state a filing due date for tax year 2024.
What you'll need
If this is your first year claiming the credit and you have not already provided the documentation, include these items with Form 1040ME and your completed worksheet:
- A complete college transcript showing the degree name, classes completed, and date the degree was obtained.
- Documentation of the educational loans that qualify for the credit.
- Proof of the actual loan payments you made directly to the lender during the tax year.
Maine Revenue Services may request additional documentation in later years, including proof of actual loan payments and employment status.
How to file
Complete the worksheet and enclose it with Form 1040ME.
- Enter your name and Social Security number, check your degree type, and provide your graduation date and the two-digit state or country abbreviation for the school’s location.
- On line 1, enter your own earned income included in federal Form 1040, line 9. If it is less than $13,244, stop. You cannot claim the credit.
- On line 2, enter eligible education loan payments you made directly to the lender during 2024.
- On line 3, enter eligible unused EOTC carryforwards from tax years 2014 through 2021 that remain within the 10-year limit. If this is your first year claiming the credit, enter zero.
- Add lines 2 and 3 on line 4.
- On line 5, enter the smaller of line 4 or $2,500. Also enter that amount on Form 1040ME, Schedule A, line 5. The credit has a $25,000 lifetime limit per qualified individual.
Include any required supporting documents. The provided text does not give a mailing address or e-file instructions.
Common mistakes
- Counting someone else’s income or payments. Do not include your spouse’s or another person’s earned income on line 1, or loan payments made by another person on line 2.
- Counting payments made while you were not a Maine resident. Only payments made during the Maine-resident part of the year qualify.
- Including refunded payments. Do not count payments refunded by the lender. If a refund affects a credit already claimed, you must amend your Maine return to reduce the credit.
- Counting ineligible loans. Loans from a related person, a qualified employer plan, or a contract purchased under a qualified employer plan do not qualify. A refinanced eligible loan must remain separate from other debt, except other educational loans.
- Missing first-year documentation. Include the required transcript, loan records, and payment proof if you have not previously provided them.
- Combining spouses on one worksheet. Each qualified spouse must complete a separate worksheet.
Questions people ask
How much is the credit for 2024?
The refundable credit equals eligible loan payments plus eligible unused EOTC carryforwards, up to $2,500 per qualified individual. A $25,000 lifetime limit applies.
Does my degree have to be from a Maine school?
No. An associate, bachelor’s, or graduate degree obtained after 2007 from an accredited Maine or non-Maine community college, college, or university can qualify.
Can both spouses claim the credit?
Yes, if both are qualified individuals. On a joint return, each spouse must complete a separate worksheet using their own earned income and eligible loan payments made directly to the lender.
Can payments on a refinanced loan qualify?
Yes, if the original loan was eligible and the refinanced loan remains separate from other debt, except other educational loans.
What if my lender refunds a payment after I claim the credit?
You must file an amended Maine income tax return to remove the refunded payment from the credit calculation.