Worksheet for "Other" Subtraction Modifications: Worksheet for Form 1040ME, Schedule 1S, line 26 (2025)
Maine · Maine Revenue Services · Used for tax years 2025
This worksheet calculates the total “Other” income subtraction modifications for Maine Form 1040ME, Schedule 1S, line 26, for tax year 2025. It lists specific amounts taxable by the federal government but not by Maine, including the taxpayer’s share of listed items from pass-thro
Who files this form
Use this worksheet for tax year 2025 if you have one of the specifically listed income subtractions for amounts taxable by the federal government but not by Maine. It supports Form 1040ME, Schedule 1S, line 26.
The listed items include certain settlement payments, ABLE account earnings, specified investment income and gains, Student Homelessness Prevention Program assistance, and a domestic research and experimental expenditure adjustment. Include your share of these items from partnerships, S corporations, and other pass-through entities.
What you'll need
- Form 1040ME and Schedule 1S: the worksheet asks for your name as shown on Form 1040ME, your Social Security number, and a total to carry to Schedule 1S.
- If you claim the line 9 domestic research and experimental expenditure adjustment, follow the instructions for Form 1040ME, Schedule 1A, line 10, and provide a statement showing your calculation.
How to file
- Enter your name as shown on Form 1040ME and your Social Security number.
- Enter eligible amounts on the applicable lines 1 through 9, following each line’s instructions.
- Add lines 1 through 9 and enter the total on line 10.
- Enter that same total on Form 1040ME, Schedule 1S, line 26.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Including unlisted subtractions. The worksheet says to include only items specifically listed.
- Leaving out your share of eligible items from partnerships, S corporations, or other pass-through entities.
- Including amounts that were not included in federal adjusted gross income where the line instructions require that inclusion.
- Omitting the calculation statement required for line 9.
Questions people ask
Can I subtract ABLE savings account earnings?
Yes. On line 2, enter ABLE savings account income, such as interest, that is included in federal adjusted gross income.
How much qualifying housing-business sale gain can I subtract?
Line 7 allows up to $750,000 of gain included in federal adjusted gross income from selling a majority ownership interest in a qualified business that provides housing. The transfer must be to a cooperative affordable housing corporation, municipal housing authority, or its affiliate. The business must not be publicly traded and must be registered with the Secretary of State or have its principal place of business in Maine.
Does the Holocaust settlement exemption apply to later recipients?
The exemption applies only to the first taxpayer receiving the settlement payment: the Holocaust victim or the victim’s spouse or descendant. Eligible payments include qualifying settlements and interest accumulated through the payment date.
Does Maine follow the federal OBBBA amortization rule for domestic research expenditures?
For Maine tax purposes, domestic research and experimental expenditures must continue to be amortized over five years as calculated before the OBBBA. If applicable, use the instructions for Form 1040ME, Schedule 1A, line 10, to calculate the line 9 amount and provide a calculation statement.
Official sources
All versions of Worksheet for "Other" Subtraction Modifications