SCHEDULE NR INSTRUCTIONS
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. See page 12 for a description of Maine source income.
SHOULD I FILE SCHEDULE NR OR SCHEDULE NRH?
Read the instructions on page 12. You must fi le Schedule NR if you are a part-year resident, a nonresident or a “Safe Harbor” resident individual required to fi le a Maine return, have income not taxable to Maine, and are using the same fi ling status used on your federal return.
Instead of fi ling Schedule NR, you may elect to fi le single on the Maine return using Schedule NRH if your fi ling status on your federal return is married fi ling 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 fi le a Maine return. Do not use Schedule NRH if your fi ling status on your federal return is single, head-of-household, or married separate.
STEP 1
Complete Worksheets A and B on pages 25 and 26 before completing Schedule NR.
STEP 2
Complete Form 1040ME, lines 1 through 24.
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 24. 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 (see instructions for Worksheet B on pages 12 and 13). 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. If this ratio is less than 0, enter 0.0000. If it is greater than 100, enter 1.0000.
Line 3. FEDERAL INCOME ADJUSTMENTS - NON-MAINE-SOURCE ONLY. Complete this section only if you have federal income adjustments on federal Form 1040, line 36, or federal Form 1040A, line 20. 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 modifi cations entered on Form 1040ME, line 15. Enter your modifi cations to income from non-Maine sources. For details on these modifi cations, see the instructions for Schedule 1 on pages 9 and 10. Do not include taxable refunds of state and local taxes. Prorate the pension deduction (Form 1040ME, Schedule 1, line 2d) and the subtraction for premiums for Long-Term Care Insurance (Form 1040ME, Schedule 1, line 2f) based on the percentage of qualifi ed pension income received or premiums paid as a nonresident or a “Safe Harbor” resident.
Line 6. NON-MAINE ADJUSTED GROSS INCOME. Add or subtract your total modifi cations, 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. If this ratio is less than 0, enter 0.0000. If it is greater than 100, enter 1.0000.
Line 8. TAX SUBTOTAL. Enter your tax subtotal. This is Form 1040ME, line 20 minus line 22, minus Maine Schedule A, lines 5 and 7.
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 25.
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 return, including all schedules and worksheets. Enclose W-2 forms from other states or temporary duty (TDY) papers to support your entry in Box C.
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