MAINE
separate property state

Military Income:  Fully taxable. Exemption allowed for Maine "Safe Harbor" residents.

Military Filing Requirement:  Yes. Maine requires "Maine Safe Harbor" residents to file Maine 1040 ME with Schedule NR..

Military Spouse Residency Relief Act:  Service member in state in compliance with military orders. Spouse in state solely to be with service member. Spouse must be a resident of same state as service member. Spouse and service member were resident of domiciled in a state other than Maine immediately prior to being located in Maine. Spouse may claim exemption from Maine income tax withholding by ANNUALLY completing Form W-4ME, line 6e. Attach a copy of the service memberís latest Leave and Earning Statement and valid military ID as proof that the employee is a spouse of a service member. The employer may NOT accept a military ID dated more than four years before the date on which it is given to the employer.

Forms Used :            

Filing Status: 

Attach Copy of Federal Return:  No

Not Taxed: 

Other State Tax Credit:  Available to residents.  Attach Maine Form Schedule 3 and copy of other state return. 

Where to Mail:
Refunds: Tax Due:
Maine Revenue Services
P O Box 9111
Augusta ME  04332-9111
Maine Revenue Services
P O Box 1067
August ME 04332-1067
Refund Info:  (207) 626-8461 updated every 7 days Forms: (207) 624-7894
Website:  www.state.me.us/revenue/ General Information:  (207) 626-8475
Other Info: E-File Help Desk:  (207) 624-9730 or efile.helpdesk@maine.gov
Maine Revenue Services
24 State House Station
Augusta, ME  04333-0024

E-filing Info:  Maine has no E-File signature form.  ERO's must maintain supporting documentation for 3 years.  The following CANNOT be filed electronically:

  • Married Filing Separate State Return if the Federal was filed Joint

Tax Form Instructions:
Resident Instructions Non-Resident Instructions
Military Publication(s) Maine Safe Harbor  

 

Filing Status Scenarios

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer)
2.  Taxpayer and Spouse Different States of Residence
3.  Taxpayer and Spouse Non-Residents
4.  Taxpayer Non-Resident - Spouse Part-Year Resident
5.  Taxpayer Married or Single - Resident but Income from Other State
6.  Amended Return

 

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer) - Taxpayer and spouse are both Maine residents, lived at their present location all year, and one or both had income.

Main Info Screen.

Maine 1040ME Form.  A nonresident Maine "Safe Harbor" income tax return is prepared. Select "Safe Harbor" resident for residency status.

Resident/Nonresident Worksheet.  The Maine military income is removed using the resident/nonresident worksheet. Link to a Scratch Pad on the cell that shows the nonresident ME income for the taxpayer/spouse. Check the worksheet when all amounts are correct.

Scratch Pad- Enter the description and type income as listed in the example. Enter the income as a negative number for the amount.

NR form

Maine Schedule NR - Residency Information Worksheet for Nonresidents/Part-Year Residents form will be generated. Complete Worksheet A prior to completing Schedule NR Worksheet B.  Complete the entries on Worksheet A as appropriate. If this is the first filing as nonresidents, ensure all pertinent questions are answered.

Maine Schedule NR - Income Allocation Worksheet for Nonresidents/Part-Year Residents form will be generated.  The Schedule NR Worksheet B is used to subtract out the nonresident North Dakota income.

Review the remainder of the Maine 1040ME Form to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

2.  Taxpayer and Spouse - Different States of Residence - Taxpayer or spouse is a resident of Maine, while the other member is a resident of a different state.  A Maine income tax return must be prepared due to the taxpayer or spouse having Maine earned income.

Main Info Screen.  If the spouse is a domicile (resident) of another state, the parties should file jointly as nonresidents.  For this example, the taxpayer is a resident of  Maine while the spouse is a resident of North Dakota.

Maine 1040ME Form.   If one spouse is a resident and the other is not and a joint federal return is filed, there are two options for filing the return.   They can file jointly as nonresidents or each can file as a single individual using Form 1040ME with Schedule NRH.  For this example we'll choose the married filing joint return as nonresidents and select "Safe Harbor" resident residency status as that provides the maximum refund. 

Resident/Nonresident Worksheet.  The Maine military income is removed using the resident/nonresident worksheet. Link to a Scratch Pad on the cell that shows the nonresident ME income for the taxpayer/spouse. Check the worksheet when all amounts are correct.

Scratch Pad- Enter the description and type income as listed in the example. Enter the income as a negative number for the amount.

NR form

Maine Schedule NR - Residency Information Worksheet for Nonresidents/Part-Year Residents form will be generated. Complete Worksheet A prior to completing Schedule NR Worksheet B.  Complete the entries on Worksheet A as appropriate. If this is the first filing as nonresidents, ensure all pertinent questions are answered.

Maine Schedule NR - Income Allocation Worksheet for Nonresidents/Part-Year Residents form will be generated.  The Schedule NR Worksheet B is used to subtract out the nonresident North Dakota income.

Review the remainder of the Maine 1040ME Form to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

3.  Taxpayer and Spouse Non-Residents - Taxpayer and spouse are residents of a different state.  The spouse and taxpayer must file a Maine tax return due to one or both having Maine earned income.

Main Info Screen.  If both members are residents of another state, the parties should file as nonresidents.  For this example, the taxpayer and spouse are both residents of Wisconsin but must file a Maine income tax return because the spouse worked in Maine.

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Maine Form 1040ME.   A joint non-resident Maine income tax return should be prepared. Ensure that Box 10 Nonresident is checked.

Maine 1040ME, Schedule 1 - Income Modifications.  To comply with the provisions of the Service Members Civil Relief Act, military member's non-resident income must be entered as a subtraction from Federal adjusted gross income.  You must enter the nonresident military pay on line 2k - Other.  Enter "NONRESIDENT MILITARY" in the space provided.

Maine Schedule NR - Nonresident  and Part-year Resident form will be generated. Complete Worksheet A prior to completing Sch NR. If you have completed this form in a previous year, it will not need to be accomplished again.

The ME Sch NR form is used to subtract out the other-states (Wisconsin) income.  The nonresident military income must be entered on line 5b - Deductions.

Review the remainder of the Maine Form 1040ME and Schedule NR to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

4.  Taxpayer Non-Resident - Spouse Part-Year Resident - Taxpayer and spouse moved to or from Maine during the tax year.  The taxpayer is a resident of a different state.  The Spouse is a part-year resident of Maine.  The Spouse and taxpayer must file a Maine tax return due to one or both of them having Maine earned income and possibly income from another state.

Main Info Screen.  For this example, the taxpayer is in the military and a resident of North Carolina.  The taxpayer and spouse moved from Maine to North Dakota during the year.  The spouse was a resident of Maine but is now changing their residency to North Dakota for tax purposes.  The spouse therefore was a part-year resident of both Maine and North Dakota and must file a Maine income tax return because the spouse worked in Maine.

Part Year Resident States Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Maine Form 1040ME.   A joint part-year resident Maine income tax return must be prepared.  This form will be generated for a Maine part-year resident who must report Maine earned income. Ensure block 9 Part-year resident is checked.

Maine 1040ME, Schedule 1 - Income Modifications.  To comply with the provisions of the Service Members Civil Relief Act, military member's non-resident income must be entered as a subtraction from Federal adjusted gross income.  You must enter the nonresident military pay on line 2k - Other.  Enter "NONRESIDENT MILITARY" in the space provided.

Maine Schedule NR - Nonresident and Part-year Residents Schedule will be generated.  Enter the dates of residency on the top. Enter the nonresident military income on line 5b.

Maine Schedule NR - Nonresident  and Part-year Resident Worksheet will be generated.  This form is used to subtract out all the other-states (Indiana and North Dakota) income.  Worksheet A - Residency Information must be completed, as in the example. Ensure ALL pertinent questions are answered over the entire worksheet.

Review the remainder of the Maine Form 1040ME and Schedule NR to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

5.  Married or Single Military Resident of Maine with Income from Another State  - Taxpayer is single.  The taxpayer must file a Maine tax return due to him or her having Maine earned income.

Main Info Screen.  For this example the taxpayer is a military member stationed in North Dakota but a resident of Maine.  The taxpayer had a job in North Dakota therefore having North Dakota earned income.

Resident/Nonresident Worksheet.  The Maine military income is removed using the resident/nonresident worksheet. Link to a Scratch Pad on the cell that shows the nonresident ME income for the taxpayer/spouse. Check the worksheet when all amounts are correct.

Maine 1040ME Form.  A nonresident Maine "Safe Harbor" income tax return is prepared. Select "Safe Harbor" resident for residency status. Maine exempts "Safe Harbor" residents on income from other than Maine sources.  

Resident/Nonresident Worksheet.  The Maine military income is removed using the resident/nonresident worksheet. Link to a Scratch Pad on the cell that shows the nonresident ME income for the taxpayer/spouse. Check the worksheet when all amounts are correct.

Scratch Pad- Enter the description and type income as listed in the example. Enter the income as a negative number for the amount.

NR form

Maine Schedule NR - Residency Information Worksheet for Nonresidents/Part-Year Residents form will be generated. Complete Worksheet A prior to completing Schedule NR Worksheet B.  Complete the entries on Worksheet A as appropriate. If this is the first filing as nonresidents, ensure all pertinent questions are answered.

Maine Schedule NR - Income Allocation Worksheet for Nonresidents/Part-Year Residents form will be generated.  The Schedule NR Worksheet B is used to subtract out the nonresident North Dakota income.

Review the remainder of the Maine 1040ME Form to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

6.  Amended Return  - An amended Maine return must be filed because the taxpayer received new tax information after their Maine return was filed.
Federal 101040X-ME Form.  Before making any changes to the tax return add the US 101040X-ME form to the tax return.  You must check the box under Income and Deductions to lock in the entries in Column A - Original amount or as previously adjusted.

Maine 1040X-ME - Amended Individual Income Tax Return.  Add the Maine 1040X-ME Form to the return.  Answer the questions as in the example.  You must check the box to lock in the entries in Column A - As last filed or adjusted, before making any changes to the return.


Make whatever changes are required to the federal tax return.  For this example, a new W-2 was received.

Maine 1040X-ME - Amended Individual Income Tax Return, Page 2.  Return to the Maine 1040X-ME form to determine if the taxpayer is receiving an additional refund or owes money.  You must enter an explanation for why the Amended Return is being prepared.  Enter the current date in the Date field.

Amended returns can not be e-filed.  The taxpayer must mail the federal 101040X-ME and any state amended returns if required to be filed.