Maine Credit for Tax Paid To Other Jurisdictions

Credit for Tax Paid To Other Jurisdictions
2023 Income Tax Paid to Other Jurisdiction Credit Worksheet
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Credit for Income Tax Paid
to Other Jurisdiction
Worksheet for Tax Year 2023

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36 M.R.S. § 5217-A

Enclose with Form 1040ME.
Also enclose a copy of the income tax return filed with the other jurisdiction.
Taxpayer Name:________________________________________________ 	SSN:___________________________ 	
(Part-year residents, see special instructions on page 3)
A.	 Name of other taxing jurisdiction:_______________________________________
1.	 Maine adjusted gross income from Form 1040ME, line 16................................................	1. ____________________ 	
2.	 Calculate the portion of Maine adjusted gross income sourced to and taxed by the
	
other jurisdiction entered on line A:
	
	
a. Income sourced to and taxed by other jurisdiction included on Form 1040ME, line 14.
		 See instructions..............................................................................................................	2a.____________________
	
	

Income modifications sourced to and taxed by other jurisdiction (Form 1040ME, Schedule
1A and Schedule 1S). Include only amounts attributable to income included on line 2a:

	

b. Additions - Specify __________________________________________ ....................	2b. ____________________

	

c. Subtractions - Specify ________________________________________ ....................	2c. ____________________

	
d. Income sourced to and taxed by other jurisdiction included on Form 1040ME, line 16.
		 Line 2a plus line 2b minus line 2c (if negative, enter zero)............................................	2d. ____________________
3.	 Percentage of income taxed by other jurisdiction (divide line 2d by line 1 - if line 2d is
	
greater than line 1, enter 1.0000).......................................................................................	 3.	 __ . ___ ___ ___ ___
4.	 Limitation of Credit:
	
a.	Maine tax on income also taxed by other jurisdiction (multiply Form 1040ME, line 20
		 by line 3 above).............................................................................................................	4a.____________________ 	
	
b.	Income taxes paid to other jurisdiction on income shown on line 2d..............................	4b. ____________________ 	
		
Do not enter the amount withheld on line 4b. See instructions.
5.	 Allowable Credit, line 4a or 4b, whichever is less. Enter here and on Maine Schedule A,
	
line 12.................................................................................................................................	5.____________________ 	

•	 Taxpayers who claim credit for income tax paid to more than one other jurisdiction: The credit for each jurisdiction
must be computed separately. Use a separate worksheet for each jurisdiction. Print the name of the other jurisdiction on
line A. Add the line 5 results together and enter the total on Maine Schedule A, line 12. Enclose with your Form 1040ME.
You must also enclose a copy of the income tax return filed with the other jurisdiction.
Note: MRS may request additional information supporting the credit claimed before the return can be processed.

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Revised: December 2023

Credit for Income Tax Paid to Other Jurisdiction
Worksheet for Tax Year 2023 - Instructions
Residents (excluding safe harbor residents) may claim a credit against Maine income tax for income tax paid to another jurisdiction if all
the following conditions are met:
1)	 the other jurisdiction is another state, a political subdivision thereof, the District of Columbia, Canadian Province or any political
subdivision of a foreign country that is analogous to a state of the United States;
2)	 the tax paid to the other jurisdiction is directly related to the income received during the tax year covered by this return (tax payments
made to other taxing jurisdictions for prior year tax liabilities cannot be considered when computing this credit); and,
3)	 the income taxed by the other jurisdiction is derived from sources in that jurisdiction. Note: Income earned from a business, trade,
profession, or occupation carried on in Maine, including income earned while teleworking in Maine, is sourced to Maine.
Part-year residents may claim a credit for tax paid to another jurisdiction on income earned during the period of Maine residency only
(excluding period of safe harbor residency) if all the above conditions are met. Part-year residents who qualify for both the credit for
tax paid to another jurisdiction and the nonresident credit must follow the special instructions below. For more information,
see the Guidance Document for Credit for Income Tax Paid to Other Taxing Jurisdiction available at www.maine.gov/revenue/
tax-return-forms (select Income Tax Guidance Documents).
Note: Individuals who are considered to be residents of both Maine (excluding safe harbor residents) and another state for income tax
purposes may qualify for a dual resident credit under 36 M.R.S. § 5128. For more information, see www.maine.gov/revenue/tax-return-forms.

Specific Instructions
Lines 2a through 2d. Income sourced to the other jurisdiction must be determined in the same way that a Maine nonresident calculates
Maine-source income for purposes of Schedule NR or Schedule NRH. Note that generally income from intangible sources, such as
interest, dividends, annuities, pensions, and gains or losses attributable to intangible personal property, received by a resident of Maine is
Maine-source income. For a description of Maine-source income for nonresident individuals, see 36 M.R.S. § 5142 and Maine Rule 806.
Income considered taxed by the other jurisdiction is the adjusted income, sourced to the other jurisdiction, that is analogous to Maine 	
adjusted gross income (federal adjusted gross income plus or minus income modifications under 36 M.R.S. § 5122).
Line 2a. Enter the income included on Form 1040ME, line 14 that is sourced to the other jurisdiction entered on line A. Do not enter an
amount greater than the amount on Form 1040ME, line 14. Do not enter income earned while working in Maine.
Line 2b. Enter the addition modifications included on Form 1040ME, Schedule 1A, line 12, attributable to the income included on line 2a.
Line 2c. Enter the subtraction modifications included on Form 1040ME, Schedule 1S, line 27, attributable to the income included on line 2a.
Line 4b. Enter the income tax paid to the other jurisdiction minus any tax amount paid on income not included on line 2d and minus any
tax credits (except withholding and estimated tax payments). If you have income on which you paid tax to the other jurisdiction that is not
included on page 1, line 2d, complete the Worksheet to Prorate the Tax Paid to Other Jurisdiction below. If you believe that the worksheet
below does not fairly represent the tax that you paid to the other jurisdiction on income taxed by Maine, you may request to use another
method to calculate this amount by attaching to Form 1040ME a worksheet that shows your suggested calculation. You will be notified if
the suggested calculation is not approved.
Worksheet to Prorate the Tax Paid to Other Jurisdiction
1)	 Enter the total gross income subject to tax in the other jurisdiction prior to any adjustments (from
	
the other jurisdiction’s income tax return).........................................................................................	$______________________
2)	 Enter the net amount of additions to and subtractions from total income shown on line 1 (from
	
the other jurisdiction’s income tax return). Do not include standard or itemized deductions or
	
personal exemptions........................................................................................................................	$______________________
3)	 Adjusted other jurisdiction gross income (line 1 plus or minus line 2). If zero or less, stop here.
	
You do not qualify for a credit...........................................................................................................	$______________________	
4)	 Other jurisdiction tax ratio (divide page 1, line 2d by line 3 - if page 1, line 2d is greater than
	
line 3, enter 1.0000)............................................................................................................................	

__ . ___ ___ ___ ___

5)	 Enter the income taxes paid to other jurisdiction minus any tax credits (except withholding
	
and estimated tax payments)...........................................................................................................	$______________________
6)	 Multiply line 5 by line 4. Enter result here and on page 1, line 4b....................................................	$______________________

	

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Credit for Income Tax Paid to Other Jurisdiction
Worksheet for Tax Year 2023 - Instructions, continued
Special instructions for Part-year Residents
For more information, see the Guidance Document for Credit for Tax Paid to Other Taxing Jurisdiction
available at www.maine.gov/revenue/tax-return-forms (select Income Tax Guidance Documents).
Line 1.	

Enter the Maine adjusted gross income while a Maine resident, excluding period of safe harbor residency (Form 1040ME, line
16, minus Schedule NR, line 6 or Schedule NRH, column C, line 6).

Line 2a.	 Enter only income included on Form 1040ME, line 14 (based on income entered on Maine Worksheet B, column C) that is
sourced to, and that was taxed by, the other jurisdiction while a Maine resident. Do not include any income that was earned
while a nonresident or a safe harbor resident of Maine. Also, see the note above under Specific Instructions.
Line 4a.	 Enter the Maine tax related to the Maine adjusted gross income shown on line 1 (Form 1040ME, line 20 minus Form 1040ME,
line 21), multiplied by the ratio on line 3.
Line 4b.	 Enter the income tax paid to the other jurisdiction minus any tax amount paid on income not included on line 2d and minus
any tax credits (except withholding and estimated tax payments). Maine Resident Period Only: If you have income on which
you paid tax to the other jurisdiction that is not included on page 1, line 2d, complete the Worksheet to Prorate the Tax Paid to
Other Jurisdiction on page 2. Also, if income taxes were paid to the other jurisdiction on income received while both a resident
and a nonresident of Maine, you must prorate the net tax calculated in the first sentence above based on the percentage of
the income that was received while a Maine resident. Do not report income taxes withheld on this line.

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