Tax Benefits and Credits for Immigrants in Maine in 2025

Key Takeaways

• Maine EITC for 2025 is 25% of federal EITC; 50% for taxpayers without qualifying children.
• Child tax credit is $2,000 per child with SSN, dropping to $1,000 without SSN in 2026.
• ITIN filers can claim Maine EITC; Guaranteed Deduction halves and enhanced health credits may expire in 2026.

As of July 2025, important updates have taken place regarding tax benefits for immigrants living and working in Maine. These changes affect the Maine Earned Income Tax Credit, the child tax credit, and several other state-level programs. This update explains what has changed, who is affected, when the changes take effect, what actions are required, and what these changes mean for immigrants and their families. The goal is to help immigrants in Maine understand their rights, what benefits they can claim, and how to make sure they receive the support they are entitled to.

Summary of What Changed

Several tax credits and benefits in Maine have been updated for the 2025 tax year. The most important changes include:

• The Maine Earned Income Tax Credit (EITC) remains available and is now set at 25% of the federal EITC for most people, and 50% for those without qualifying children.
• The child tax credit remains at $2,000 per child with a Social Security Number (SSN) for 2025, but is scheduled to drop to $1,000 per child and remove the SSN requirement starting in 2026.
• The Guaranteed Deduction, which helps lower taxable income, will be cut in half starting in 2026.
• Enhanced premium tax credits for health insurance are available in 2025, but may expire after this year.
• Immigrants who file taxes using an Individual Taxpayer Identification Number (ITIN) can claim the Maine Earned Income Tax Credit if they meet other requirements.

These changes are important for immigrants, especially those with children or those who do not have a Social Security Number but have an ITIN.

Who Is Affected

These updates affect several groups:

• Immigrants living and working in Maine, including those who file taxes with an ITIN instead of an SSN.
• Families with children, especially those whose children do or do not have SSNs.
• Low- and moderate-income workers, who are most likely to qualify for the Maine Earned Income Tax Credit and the child tax credit.
• All Maine taxpayers, since the Guaranteed Deduction and other credits affect nearly everyone who files a state tax return.

Effective Dates

• The current rules for the Maine Earned Income Tax Credit and child tax credit apply for the 2025 tax year (returns filed in 2026).
• Scheduled cuts to the child tax credit and Guaranteed Deduction will take effect on January 1, 2026, unless new laws are passed to extend the current benefits.
• Enhanced premium tax credits for health insurance are available through the end of 2025, but may not continue after that.

Required Actions

To claim these benefits, immigrants and other taxpayers in Maine must:

• File a Maine state income tax return for 2025, using the correct forms and schedules.
• For the Maine Earned Income Tax Credit, file Form 1040ME and include Schedule A and the Earned Income Tax Credit Worksheet. The official form and instructions are available on the Maine Revenue Services website.
• For the child tax credit, make sure to include children’s SSNs if available, as this affects the amount of credit.
• Apply for health insurance and premium tax credits through CoverME.gov if needed.
• Stay informed about possible changes to these credits for 2026 and beyond.

Detailed Overview of Tax Benefits for Immigrants in Maine (2025)

Maine Earned Income Tax Credit (EITC)

The Maine Earned Income Tax Credit is a refundable credit, which means you can get money back even if you do not owe any state income tax. For 2025:

• Credit Amount: Maine’s EITC is 25% of your federal EITC amount. If you do not have qualifying children, the state credit is 50% of your federal EITC.
• Federal EITC Update: The federal EITC for 2025 has increased, with a maximum credit of up to $8,046 for families with three or more qualifying children. Maine’s credit is 25% of this, so the maximum Maine EITC could be over $2,000 for large families.
• Eligibility for Immigrants: Maine allows people who file taxes with an ITIN to claim the Maine EITC, as long as they meet all other federal EITC rules. This is important for immigrants who do not have an SSN but are working and paying taxes.
• Age and Child Requirements: You must be at least 18 years old. You can qualify even if you do not have children, as long as you meet the income and other requirements.
• Income Limits: The amount you can earn and still qualify depends on your filing status and number of children. For example, a married couple with three or more children can earn up to $68,675 and still get some credit.
• How to Claim: File Form 1040ME, Schedule A, and the Earned Income Tax Credit Worksheet with your Maine state tax return.

Child Tax Credit in Maine

The child tax credit helps families with the cost of raising children. For 2025:

• Credit Amount: $2,000 per child, but only if the child has a valid SSN.
• Eligibility: Immigrant families can claim this credit if their children have SSNs. If children do not have SSNs, the family cannot claim the full credit for 2025.
• Upcoming Change: Starting in 2026, the credit is scheduled to drop to $1,000 per child, and the SSN requirement will be removed. This means families with children who do not have SSNs may be able to claim the smaller credit, but all families will get less money per child.
• Impact: About 137,820 Maine families would see their child tax credit cut in half if the scheduled changes take place.

Other State-Level Tax Credits and Programs

• Guaranteed Deduction: This is a standard deduction that reduces your taxable income. For 2025, it is $15,300 for single filers and $30,600 for married couples. Starting in 2026, it will be cut in half, which means you may owe more in taxes.
• Sales Tax Fairness Credit: This is a refundable credit for low- and moderate-income residents, including immigrants, to help offset the cost of sales tax. There are no scheduled changes to this credit for 2026.
• Educational Opportunity Tax Credit & Student Loan Repayment Tax Credit: These credits are for people with student loans or certain educational expenses. They may help some immigrants, depending on their situation.
• Enhanced Premium Tax Credits for Health Insurance: These credits help lower the cost of health insurance for people who buy coverage through CoverME.gov. In 2025, the average savings is about $625 per month per family. These credits may expire after 2025, which could make health insurance more expensive for many families, including immigrants.

Eligibility and Practical Considerations for Immigrants

• ITIN Filers: Maine is one of the few states that allows people who file taxes with an ITIN to claim the Maine Earned Income Tax Credit. This is a big help for immigrants who do not have an SSN but are working and paying taxes.
• Children’s SSN Requirement: For the child tax credit in 2025, children must have an SSN. This can be a problem for some immigrant families whose children do not have SSNs.
• Income Limits and Phaseouts: Both the Maine Earned Income Tax Credit and the child tax credit have income limits. If you earn too much, you may not qualify or may get a smaller credit.
• Filing Requirements: To get these credits, you must file a Maine state income tax return and use the correct forms. If you do not file, you will not get the credits.

Implications for Pending Applications and Future Years

If you are planning to file for these credits in 2025, you should:

• Make sure you have all the needed documents, including ITINs or SSNs for yourself and your children.
• File your Maine state tax return on time and use the correct forms.
• If you are unsure about your eligibility, contact Maine Revenue Services or a trusted tax preparer for help.
• Be aware that the child tax credit and Guaranteed Deduction are scheduled to be reduced in 2026. This means you may get less money back on your taxes in future years unless the law changes.
• If you rely on premium tax credits for health insurance, keep an eye on updates from CoverME.gov, as these credits may end after 2025.

Summary Table of Key Tax Benefits for Immigrants in Maine (2025)

Official Resources and Where to Get Help

• Maine Revenue Services: For official forms, instructions, and help with claiming the Maine Earned Income Tax Credit and other credits, visit the Maine Revenue Services website.
• CoverME.gov: For information about health insurance and premium tax credits, visit CoverME.gov.
• Tax Preparers and Advocacy Groups: Many community organizations and tax preparers in Maine offer free or low-cost help to immigrants and low-income families.

Economic and Policy Impact

The Maine Earned Income Tax Credit and the child tax credit are important for helping working families, especially immigrants who may face extra challenges. Allowing ITIN filers to claim the Maine Earned Income Tax Credit is a positive step that helps more immigrants benefit from the tax system. However, the scheduled cuts to the child tax credit and Guaranteed Deduction in 2026 could make life harder for many immigrant families, as they would receive less money back and could face higher taxes.

The possible end of enhanced premium tax credits for health insurance is also a concern. If these credits expire, health insurance could become much more expensive for many families, including immigrants who rely on this help to afford coverage.

What Immigrants Should Do Next

• File Your Taxes: Make sure to file your Maine state tax return for 2025, even if you do not owe any tax. This is the only way to get the Maine Earned Income Tax Credit, child tax credit, and other benefits.
• Check Your Eligibility: Review the rules for each credit. If you use an ITIN, you can still claim the Maine Earned Income Tax Credit if you meet the other requirements.
• Gather Documents: Collect all needed documents, including ITINs, SSNs, and proof of income.
• Ask for Help: If you are unsure about anything, contact Maine Revenue Services or a trusted tax preparer. Many organizations offer help in different languages.
• Stay Informed: Watch for updates about possible changes to these credits for 2026 and beyond. Laws can change, and it is important to know how these changes might affect you and your family.

Looking Ahead

As reported by VisaVerge.com, the Maine Earned Income Tax Credit and child tax credit are vital supports for immigrants and working families in Maine. The ability for ITIN filers to claim the Maine Earned Income Tax Credit is especially important, as it helps include more immigrants in the state’s tax benefits. However, with scheduled cuts coming in 2026, it is important for immigrants to plan ahead and stay informed about possible changes.

For the most up-to-date information, always check the Maine Revenue Services official website. This site has the latest forms, instructions, and updates on all state tax credits, including the Maine Earned Income Tax Credit and child tax credit.

Conclusion

Immigrants in Maine in 2025 have access to several important tax benefits, including the Maine Earned Income Tax Credit, the child tax credit, and other state programs. These benefits can provide real financial help, but changes are coming in 2026 that may reduce the amount of support available. By filing taxes correctly, checking eligibility, and staying informed, immigrants can make sure they receive all the benefits they deserve. If you have questions or need help, reach out to Maine Revenue Services or a trusted local organization.

Learn Today

Maine Earned Income Tax Credit (EITC) → A refundable tax credit based on federal EITC, helping low-income workers in Maine reduce taxes or get refunds.
Individual Taxpayer Identification Number (ITIN) → A tax processing number given to individuals who are not eligible for a Social Security Number to file taxes.
Child Tax Credit → A state tax benefit providing monetary credit per child with a Social Security Number to reduce tax liability.
Guaranteed Deduction → A standard deduction in Maine that lowers taxable income, scheduled to be cut in half starting 2026.
Enhanced Premium Tax Credits → Tax credits helping reduce health insurance costs available through CoverME.gov, with possible expiration after 2025.

This Article in a Nutshell

In 2025, Maine updates tax benefits aiding immigrants—including a 25% state EITC and $2,000 child tax credits. ITIN taxpayers qualify for credits, but scheduled 2026 cuts to benefits caution immigrants to file correctly and stay informed to maximize support for their families.
— By VisaVerge.com