Standard deduction; resident on or after January 1, 2018

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§5124-C. Standard deduction; resident on or after January 1, 2018

1.  Amount; before January 1, 2020.  For tax years beginning on or after January 1, 2018 and before January 1, 2020, the standard deduction of a resident individual is equal to the standard deduction as determined in accordance with the Code, Section 63, subject to the phase-out under subsection 2.  

[PL 2019, c. 616, Pt. X, §2 (AMD).]

1-A.  Amount; on or after January 1, 2020.  For tax years beginning on or after January 1, 2020, the standard deduction of a resident individual is equal to the federal standard deduction, subject to the phase-out under subsection 2.  

[PL 2019, c. 616, Pt. X, §3 (NEW).]

2.  Phase-out.  The standard deduction of the taxpayer must be reduced by an amount equal to the total standard deduction multiplied by the following fraction:  

A. For single individuals and married persons filing separate returns, the numerator is the taxpayer's Maine adjusted gross income less $80,000, except that the numerator may not be less than zero, and the denominator is $75,000. In no case may the fraction calculated pursuant to this paragraph produce a result that is more than one. The $80,000 amount used to calculate the numerator in this paragraph must be adjusted for inflation in accordance with section 5403, subsection 4;   [PL 2017, c. 474, Pt. B, §2 (NEW).]

B. For individuals filing as heads of households, the numerator is the taxpayer's Maine adjusted gross income less $120,000, except that the numerator may not be less than zero, and the denominator is $112,500. In no case may the fraction calculated pursuant to this paragraph produce a result that is more than one. The $120,000 amount used to calculate the numerator in this paragraph must be adjusted for inflation in accordance with section 5403, subsection 4; or   [PL 2017, c. 474, Pt. B, §2 (NEW).]

C. For individuals filing married joint returns or surviving spouses permitted to file a joint return, the numerator is the taxpayer's Maine adjusted gross income less $160,000, except that the numerator may not be less than zero, and the denominator is $150,000. In no case may the fraction calculated pursuant to this paragraph produce a result that is more than one. The $160,000 amount used to calculate the numerator in this paragraph must be adjusted for inflation in accordance with section 5403, subsection 4.   [PL 2017, c. 474, Pt. B, §2 (NEW).]

[PL 2017, c. 474, Pt. B, §2 (NEW).]

SECTION HISTORY

PL 2017, c. 474, Pt. B, §2 (NEW). PL 2019, c. 616, Pt. X, §§2, 3 (AMD).


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