Bill > LD1899

This bill introduces a state tax deduction for medical and dental expenses in Maine, effective for tax years starting January 1, 2026. The deduction allows taxpayers to reduce their state income tax by the amount they spent on medical and dental expenses for themselves, their spouse, or dependents, even if these expenses did not meet the federal tax deduction threshold. Importantly, the expenses must not have already been compensated by insurance or previously deducted from the taxpayer's federal adjusted gross income. The bill specifically states that any medical or dental expense that would be eligible for deduction under the United States Internal Revenue Code can be claimed, regardless of whether it meets the standard federal deduction requirements. This provision aims to provide additional tax relief for Maine residents by allowing them to offset their state tax liability with out-of-pocket healthcare spending.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1899&snum=132