The dependent exemption tax credit, up to $300, may be claimed for each qualifying child and dependent of the taxpayer for whom the federal child tax credit under Internal Revenue Code, Section 24 was claimed for the same taxable year.
For tax years beginning before 2024, the credit is nonrefundable. For tax years beginning on or after January 1, 2024, the credit is refundable for Maine residents and part-year residents.
The credit for part-year residents is prorated based on the ratio of the taxpayer’s Maine income (Maine adjusted gross income during the period of Maine residency plus Maine source income during the period of nonresidency) to federal adjusted gross income. The credit for nonresidents is limited to the taxpayer’s ratio of Maine source income to federal adjusted gross income.
The credit is subject to phaseout for taxpayers whose Maine adjusted gross income exceeds $400,000 for married taxpayers filing jointly and $200,000 for all other taxpayers.
For tax years beginning after 2024, the credit amount will be adjusted for inflation.
See the applicable Worksheet for Dependent Exemption Tax Credit for each tax year to see if you qualify:
How does someone apply for the dependent exemption tax credit?
To claim the credit, file Form 1040ME and Schedule A, and complete the Worksheet for Dependent Exemption Tax Credit – Schedule A, Lines 1 and 9.
Statute: 36 M.R.S. § 5219-SS