Sec. 1. 36 MRSA §5124-A, first ¶, as repealed and replaced by PL 1989, c. 495, §2 and affected by c. 596, Pt. J, §7, is amended to read:

The standard deduction of resident taxpayers shall filing as single individuals or resident taxpayers who are married persons filing separate returns or resident taxpayers who are individuals who can be claimed as dependents on another taxpayer's return must conform to the allowable federal standard deduction of the taxpayer. For married resident taxpayers filing joint returns, but excluding those who can be claimed as dependents on another taxpayer's return, or who are surviving spouses permitted to file joint returns, the standard deduction is twice the amount permitted for single individuals.__For resident taxpayers who are unmarried individuals or legally separated individuals and who qualify as heads of households, the standard deduction is 150% of the amount permitted for single individuals.

Sec. 2. Application. That section of this Act that amends the Maine Revised Statutes, Title 36, section 5124-A applies to tax years beginning on or after January 1, 2003.

SUMMARY

This bill provides that the standard deduction for married persons filing joint returns and surviving spouses permitted to file joint returns is twice the amount for persons filing as single individuals. The deduction does not apply to individuals who file joint returns and are also included as dependents on the return of another taxpayer. The standard deduction for heads of households is 150% of the amount for single individuals.