This is for taxpayers that are Non-residents of Maine. The taxpayer lives in a state other than Maine, they have earned some of their income in Maine. Consequently, they owe Maine Non-resident income tax.

When did I move to Maine from Massachusetts?

One W-2 shows that Massachusetts tax was withheld from wages and the other shows that Maine income tax was withheld. In your interview with the taxpayer you discovered that he moved into Maine to work at LL Bean on September 21st of the prior year.

Do you have to file two Maine tax returns?

It also means that the taxpayer will need to file two state tax returns – a tax return with the other state along with their normal Federal + State of Maine Return. This is for taxpayers that are Non-residents of Maine. The taxpayer lives in a state other than Maine, they have earned some of their income in Maine.

How to allocate income between Maine and Massachusetts?

Following are the steps you will take to allocate the income between the two taxing jurisdictions. ENDNOTE: This taxpayer will be filing their Federal return, their Maine Resident return and a Massachusetts return. You are NOT required to prepare the Massachusetts state return.

What kind of taxes do I pay as a non resident in Massachusetts?

Your Massachusetts tax treatment is based on your residency status and not the type of visa you hold. Nonresidents use Form 1-NR/PY – Massachusetts Nonresident or Part-Year Resident Income Tax Return. Use Schedule R/NR – Resident/Nonresident Worksheet to adjust your income, deductions, and exemptions.

How does a nonresident credit work in Maine?

You are then allowed to calculate a nonresident credit on Maine Schedule NR that will reduce your Maine tax by the portion of the tax that is related to the income you earned outside the state while a nonresident or “safe harbor” resident of Maine.

What do I need to know about Maine real estate taxes?

This 2.5% withholding is an estimated tax payment to ensure that a seller complies with Maine income tax responsibilities. The Maine real estate withholding amount is merely an estimate of the income tax due on the gain from the sale of the Maine property.