Maine Dual Residence Reduction of Tax Credit

Dual Residence Reduction of Tax Credit
2023 Dual Residence Credit Worksheet
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Dual Residence Reduction of Tax Credit
Worksheet for Tax Year 2023

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36 M.R.S. § 5128
Enclose with Form 1040ME.

Also enclose a copy of the income tax return filed with the other jurisdiction.

Taxpayer Name:_________________________________________ 	

SSN:______________________

	

Name of other taxing jurisdiction:___________________________________________________
1. 	 a.	 Amount of income taxed by both jurisdictions as a resident of both jurisdictions................. 1a.	$_______________
	
b.	 Amount from Form 1040ME, Worksheet for Credit for Income Tax Paid to Other
		 Jurisdiction, line 2d, taxed by the other jurisdiction named above........................................ 1b.	 $_______________
	

c.	 Subtract line 1b from line 1a................................................................................................. 1c.	$_______________

		

List type and amount of income included on line 1c:______________________________

		_______________________________________________________________________
2.	 Maine adjusted gross income (Form 1040ME, line 16)............................................................... 2.	 $_______________
3. 	 Percentage of income taxed by both jurisdictions (divide line 1c by line 2) ................................ 3.	

__ . __ __ __ __

4.	 a.	 Maine tax on line 1c income: (Form 1040ME, line 20) $__________ x line 3....................... 4a.	$_______________
	

b.	 Other jurisdiction tax paid (do not enter the amount withheld) on line 1c income................. 4b.	 $_______________

5.	 Total tax assessed by both jurisdictions (add line 4a and line 4b)............................................... 5.	$_______________
6.	 Enter the smaller of line 4a or line 4b.......................................................................................... 6.	 $_______________
7.	 Percentage of Maine tax in relation to total combined tax for both jurisdictions
	
(divide line 4a by line 5)............................................................................................................... 7.	

__ . __ __ __ __

8.	 Dual Residence Reduction of Tax Credit:
	
Multiply line 6 by line 7. Enter the result here and on Form 1040ME,
	
Schedule A, Other Tax Credits Worksheet, line 12...................................................................... 8.	$_______________
	
Note: MRS may request additional information supporting the credit claimed before the return can be processed.

Revised: December 2023

Dual Residence Reduction of Tax Credit
Worksheet for Tax Year 2023 Instructions
36 M.R.S. § 5128

Individuals who are considered residents of both Maine and another state for income tax purposes may qualify for a reduction
of tax provided the other taxing jurisdiction allows a similar tax reduction. Generally, income qualifying for the credit for taxes
paid to another jurisdiction does not qualify for this credit. Income that generally qualifies for the dual residence tax reduction
is income from intangible sources such as interest and pension income. For questions on how to complete this worksheet,
email [email protected].
The reduction of tax is equal to a ratio of which the numerator is the Maine tax applicable to the income taxed twice and
the denominator of which is the sum of the two taxes applicable to the income taxed twice multiplied by the lower of the two
taxes applicable to the income taxed twice.
General Instructions
Enter taxpayer name and social security number (“SSN”) where indicated at the top of the form. Then enter the name of the
other taxing jurisdiction where indicated above line 1.
Line 1	 is used to determine income taxed by both jurisdictions as a resident of each state excluding income eligible for
the Credit for Tax Paid to Other Jurisdictions (Form 1040ME, Worksheet for Credit for Income Tax Paid to Other
Jurisdiction). The worksheet is available at www.maine.gov/revenue/tax-return-forms.
Line 3	 is the percentage of income taxed by both jurisdictions in relation to the total Maine income.
Line 4	 reflects the tax assessed by each jurisdiction on the income eligible for dual residence tax deduction.
Line 7	 is the percentage Maine tax represents of total tax assessed by both jurisdictions on the income eligible for the dual
residence tax reduction.
Example:
John and Jane are full-year Maine residents, but they are also required to file as statutory residents of state XYZ for the
entire year. State XYZ allows a credit similar to Maine’s Dual Residence Reduction of Tax Credit. John and Jane filed a
married joint return and had federal adjusted gross income of $150,000. John had wages of $50,000, pension of $95,000
and interest of $5,000 that are also taxed by state XYZ as resident income.

State XYZ
Name of other taxing jurisdiction:______________________________

1.	 a.	 Amount of income taxed by both jurisdictions as a resident of both jurisdictions ................. 1a.	$_____________
150,000
	

b.	Amount from Form 1040ME, Worksheet for Credit for Income Tax Paid to Other

	

c.	 Subtract line 1b from line 1a............................................................................................ 1c.	$_____________
100,000

		 Jurisdiction, line 2d taxed by the other jurisdiction named above................................... 1b.	 $_____________
50,000

Pension: $95,000
		 List type and amount of income included on line 1c:_____________________________
Interest: $5,000
		______________________________________________________________________

2.	 Maine adjusted gross income (Form 1040ME, line 16).......................................................... 2.	 $_____________
150,000
3. 	Percentage of income (divide line 1c by line 2) ..................................................................... 3.	

	 __
0	. __
6	 __
6	 __
6 __
7

7,155 x line 3......................... 4a.	$_____________
4.	 a.	 Maine tax on line 1c income (Form 1040ME, line 20) $_______
4,770
	

b. Other jurisdiction tax paid (do not include amount withheld) on line 1c income.............. 4b.	 $_____________
2,353

5.	 Total tax assessed by both jurisdictions (add line 4a and line 4b).......................................... 5.	$_____________
7,123
6.	 Enter the smaller of line 4a or line 4b..................................................................................... 6.	 $_____________
2,353
7.	 Percentage of Maine tax in relation to total combined tax for both jurisdictions
	

(divide line 4a by line 5).......................................................................................................... 7.	 __
0 . __
6 __
6 __
9 __
7

8.	 Dual Residence Reduction of Tax Credit:
	
	

Multiply line 6 by line 7. Enter the result here and on Form 1040ME, Schedule A,

1,576
Other Tax Credits Worksheet, line 12..................................................................................... .8.	 $_____________