Dual Residence Reduction Of Tax Credit Worksheet Form - Maine Revenue Services - 2012 Page 2

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DUAL RESIDENCE
REDUCTION OF TAX CREDIT WORKSHEET
36 M.R.S.A. § 5128
INSTRUCTIONS
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 qualifi es
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, call (207) 626-8475.
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.
SPECIFIC 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 Jurisdictions). The worksheet is available at
Line 3 is the percentage of income taxed by both jurisdictions in relation to the total Maine income.
Line 4 refl ects 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 fi le 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 fi led 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.
XYZ
Name of other taxing jurisdiction: _____________________________
150,000
1. a.
................ 1a. $ ____________
Amount of income taxed by both jurisdictions as a resident of both jurisdictions
b. Amount from Form 1040ME, worksheet for Credit for income Tax Paid to Other
50,000
Jurisdictions, line 2 taxed by the other jurisdiction named above ................................... 1b. $ ____________
100,000
c. Subtract line 1b from line 1a ........................................................................................... 1c. $ ____________
Pension: $95,000
List type and amount of income included on line 1c: ____________________________
Interest: $5,000
_____________________________________________________________________
150,000
2. Maine adjusted gross income (Form 1040ME, line 16) ......................................................... 2. $ ____________
0 6 6 6 7
3. Percentage of income (divide line 1c by line 2) .................................................................... 3.
__ . __ __ __ _
9,881
6,588
4. a. Maine tax on line 1c income (Form 1040ME, line 20) $__________ x line 3 ................... 4a. $ ____________
3,568
b. Other jurisdiction tax paid (do not include amount withheld) on line 1c income ............. 4b. $ ____________
10,156
5. Total tax assessed by both jurisdictions (add line 4a and line 4b) ......................................... 5. $ ____________
3,568
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
0 6 4 8 7
(divide line 4a by line 5) ......................................................................................................... 7.
__ . __ __ __ _
8. Dual Residence Reduction of Tax Credit:
2,315
Multiply line 6 by line 7. Enter the result here and on Form 1040ME, Schedule A, line 18 .. 8. $ ____________
Rev. 10/12

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