Maine Apportionment for Nonresidents and Part-Year Residents

Apportionment for Nonresidents and Part-Year Residents
2023 Schedule NR (Form 1040ME)
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Schedule NR
Form 1040ME

2023

Attachment Sequence No. 8

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Schedule for Calculating the Nonresident Credit
Part-Year Residents, Nonresidents and
Safe Harbor Residents Only
This schedule must be enclosed with your completed Form 1040ME.
If part-year resident, enter dates you were a Maine Resident:
from________________ to __________________ .

Name(s) as shown on Form 1040ME

Your Social Security Number

-

-

WHO MUST FILE SCHEDULE NR? Part-year resident, nonresident and safe harbor resident individuals who are required to file a Maine return, but
have income not taxable by Maine and use the same filing status on the Maine return as used on the federal return. See reverse side for instructions.
DO NOT FILE SCHEDULE NR IF: All your income is taxable by Maine or if your federal filing status is “Married filing jointly” and you elect to file
“Single” on the Maine return (use Schedule NRH available at www.maine.gov/revenue/tax-return-forms.
YOU MUST ENCLOSE A COMPLETE COPY OF YOUR FEDERAL TAX RETURN, including all schedules and worksheets. Enclose copies
of W-2 forms from other states or temporary duty (TDY) papers to support your entry in Box C.

IMPORTANT: If required, complete Worksheets A and B available at www.maine.gov/revenue/tax-return-forms
before completing Schedule NR.

1. INCOME — (If required, complete and attach Worksheets A and B
available at www.maine.gov/revenue/tax-return-forms):
Box A - From Worksheet B, line 15, column A
Box B - From Worksheet B, line 15, column B plus column E
Box C - From Worksheet B, line 15, column D minus column E ...... $

Box A
FEDERAL

Box C
NON-MAINE

Box B
MAINE

$

$

2. RATIO OF INCOME: Divide line 1, Box C by line 1, Box A and enter the result here. Except, if
non-Maine-source income (line 1, Box C) is negative, enter 0.0000 or if line 1, Box C is positive
and Maine-source income (line 1, Box B) is negative, enter 1.0000.............................................................. 	___ . ___ ___ ___ ___
COMPLETE THIS SECTION ONLY IF YOU HAVE FEDERAL INCOME ADJUSTMENTS
3. FEDERAL INCOME ADJUSTMENTS — NON-MAINE-SOURCE ONLY: Multiply amount on federal
Form 1040 or Form 1040-SR, line 10 by the percentage listed on line 2. Enter result here.......................... 	 ____________________ 	
4. FEDERAL ADJUSTED GROSS INCOME — NON-MAINE-SOURCE ONLY: Subtract line 3 from
Line 1, Box C................................................................................................................................................. 	 ____________________
COMPLETE THIS SECTION ONLY IF YOU HAVE INCOME MODIFICATIONS (Form 1040ME, line 15a or line 15b)
5. INCOME MODIFICATIONS — NON-MAINE-SOURCE ONLY. Enter only amounts attributable to your non-resident period.
See instructions.
a. Additions — Specify____________________________ 	 ..................................	 ___________________
b. Subtractions — Specify_________________________ 	 ..................................	 ___________________
c. Total Modifications: line 5a minus line 5b (may be a negative amount)................................................... 	 ____________________
6. NON-MAINE ADJUSTED GROSS INCOME: Add or subtract your income modifications, line 5c, to
or from line 4.................................................................................................................................................. 	 ____________________
7. RATIO OF MAINE ADJUSTED GROSS INCOME: Divide line 6 by the amount from Form 1040ME,
line 16 and enter result here. Except, if line 6 is negative, enter 0.0000 or if line 6 is greater than the
amount on Form 1040ME, line 16, enter 1.0000........................................................................................... 	___ . ___ ___ ___ ___
8. MAINE INCOME TAX: Enter from Form 1040ME, line 20 ......................................................................... 	 ____________________
9. NONRESIDENT CREDIT: Multiply amount on line 8 by line 7.
Enter result here and on Form 1040ME, line 21............................................................................................ 	 ____________________

Part-Year Resident, Nonresident, and Safe Harbor Resident Instructions
Enclose Schedule NR and Worksheets A and B (and Worksheet C, if used) with your Maine return, Form 1040ME. Include a COMPLETE copy of your federal
tax return, including all schedules and worksheets. Enclose W-2 forms from other states and temporary duty (TDY) papers to support your entry in Box C.

Nonresident individuals, including individuals who were nonresidents for only part of the year and safe harbor resident individuals, who have Mainesource income may owe a Maine income tax. See page 3 of the individual income tax booklet for residency information. MILITARY SERVICE
MEMBER SPOUSE: The income of a military spouse for the performance of services in Maine will not be treated as Maine-source income subject
to Maine income taxation if the military spouse is not a resident or domiciliary of Maine (or elects to retain residency in another state under the
federal Military Spouse Residency Relief Act), the military spouse is located in Maine solely to be with the service member, the service member
is located in Maine in compliance with military orders, and the service member and the spouse have the same state of residency or domicile. The
Maine tax is determined by first calculating a tax amount as if the part-year resident, nonresident or safe harbor resident were a Maine resident for
the entire year and then reducing that amount by a “nonresident credit.” The Maine tax is calculated on the basis of the nonresident’s or safe harbor
resident’s entire federal adjusted gross income and the Maine income modifications, itemized or standard deduction, personal exemption amount
and credits. The nonresident credit is based on the amount of non-Maine-source income. The nonresident credit is calculated on Schedule NR or
Schedule NRH and entered on Form 1040ME, line 21. Note: Nonresident minimum taxability thresholds: A nonresident individual working in Maine
as an employee is not required to pay a Maine tax or file a Maine return on income from personal services unless that individual works in Maine
for more than 12 days and earns or derives income from all Maine sources totaling more than $3,000. Up to 24 days performing certain personal
services, such as training and site inspections, are not counted against the 12-day threshold. Also, generally, a nonresident individual present in
Maine for business for no more than 12 days and earning no more than $3,000 from business activity in Maine is not required to pay a Maine tax or
file a Maine income tax return on that income. Compensation or income directly related to a declared state disaster or emergency is exempt from
Maine tax if the taxpayer’s only presence in Maine is for the sole purpose of providing disaster relief. For more information, see Maine Revenue
Services Rule 806 and 36 M.R.S. §§ 5142(8-B) and 5220(2) available on the MRS website at www.maine.gov/revenue (select Laws and Rules).
Income Subject to Maine Income Tax:
A part-year resident is subject to Maine income tax on all income received while a resident of Maine, plus any income derived from Maine sources
during the period of nonresidence. A nonresident or safe harbor resident is subject to Maine income tax on taxable income derived from sources
within Maine. For a description of Maine-source income, see Maine Revenue Services Rule 806 available at www.maine.gov/revenue (select Laws
and Rules) or the Instructional Pamphlets for Schedule NR or NRH at www.maine.gov/revenue/tax-return-forms.
Should I file Schedule NR or Schedule NRH?
You must file Schedule NR if you are a part-year resident, a nonresident, or a safe harbor resident individual required to file a Maine return, have
income not taxable to Maine, and are using the same filing status used on your federal return.
Instead of filing Schedule NR, you may elect to file single on the Maine return using Schedule NRH if your filing status on your federal return is
married filing jointly and your residency status is different from that of your spouse or both you and your spouse are nonresidents of Maine or safe
harbor residents, but only one of you has Maine-source income. The nonresident or safe harbor resident spouse with no Maine-source income
does not have to file a Maine return. Do not use Schedule NRH if your filing status on your federal return is single, head-of-household, or married
filing separately.	 	
	
	
  
STEP 1 — If required, complete and enclose Worksheets A and B available at www.maine.gov/revenue/tax-return-forms before completing
Schedule NR.
STEP 2 — Complete Form 1040ME, lines 1 through 20a.
Find the amount of Maine income tax as if you were a full-year Maine resident. To do this, complete Form 1040ME, lines 1 through
20a. Use your total federal adjusted gross income on line 14.
STEP 3 — Complete Schedule NR to compute your Nonresident Credit.
Line 1. Enter your income from Worksheet B on line 1. List your total federal income in Box A. In Box B, list only your Maine-source
income. List your non-Maine-source income in Box C.
Line 2. RATIO OF INCOME. Divide your total non-Maine-source income on line 1, Box C, by your total federal income on line 1, Box A.
Except, if non-Maine-source income (line 1, Box C) is negative, enter 0.0000 or if line 1, Box C is positive and Maine-source income (line
1, Box B) is negative, enter 1.0000.
Line 3. FEDERAL INCOME ADJUSTMENTS — NON-MAINE-SOURCE ONLY. Complete this section only if you have federal income
adjustments from non-Maine sources on federal Form 1040 or Form 1040-SR, line 10. Enter the total federal income adjustments from nonMaine sources; otherwise, multiply your total federal income adjustments by the percentage listed on line 2 of Schedule NR.
Line 4. FEDERAL ADJUSTED GROSS INCOME — NON-MAINE-SOURCE ONLY. Subtract line 3 from line 1, Box C.
Line 5. MODIFICATIONS — NON-MAINE-SOURCE ONLY. Use this section only if you have income modifications entered on Form
1040ME, line 15a or line 15b. Enter your modifications to income from non-Maine sources received while you were a nonresident of Maine.
For details on these modifications, see the instructions for Schedules 1A and 1S on pages 6 through 8 of the individual income tax booklet.
Do not include taxable refunds of state and local taxes. Prorate the pension deduction (Form 1040ME, Schedule 1S, line 4) based on the
percentage of qualified pension income received as a nonresident or a safe harbor resident.
Line 6. NON-MAINE ADJUSTED GROSS INCOME. Add or subtract your income modifications, line 5c, to or from line 4.
Line 7. RATIO OF MAINE ADJUSTED GROSS INCOME. Divide the amount of your non-Maine adjusted gross income, line 6, by your total
Maine adjusted gross income from Form 1040ME, line 16. Except, if line 6 is negative, enter 0.0000 or if line 6 is greater than the amount
on Form 1040ME, line 16, enter 1.0000.
Line 8. MAINE INCOME TAX. Enter the Maine income tax from Form 1040ME, line 20.
Line 9. NONRESIDENT CREDIT. Multiply the amount on line 8 by the percentage on line 7. This is your Nonresident Credit. Enter the result
here and on Form 1040ME, line 21.