Article: 50589

Overview 

The Maine Credit for Disability Income Protection Plans is a tax credit available to eligible members of pass-through entities that provide or reimburse the cost of disability income protection plans for themselves or their employees. This credit is claimed on your Maine Form 1040ME using the designated entry form within your state return. 

Who Can Claim This Credit? 

You may be eligible for this credit if: 

• You are an individual member, partner, or shareholder in a pass-through entity such as an LLC, S corporation, or partnership. 

• The entity paid or reimbursed qualifying disability insurance premiums for a plan that covers: 

• You as a self-employed individual or 

• Employees of the entity 

• The credit was allocated to you by the entity and reported on Schedule K-1 or other supporting documentation. 

Note: This credit is nonrefundable but may be carried forward for up to 15 years if not fully used in the current tax year. 

How to Report 

1. Navigate to the State Taxes section on the left-hand side of the screen. 

2. Click the link: I’d like to see the forms I’ve filled out or search for a form. 

3. In the dropdown menu, select Maine. 

4. Click on the Business Related Credits tab. 

5. Select Credit for Disability Income Protection Plans to open the screen. 

6. Enter all applicable information.  

7. Click Save once complete. 

Additional Resources 

For detailed guidance, refer to: 

• 2024 Maine Disability Income Protection Plans Credit Worksheet (PDF) 

• Maine Revenue Services – Income Tax Credits