Schedule Nr - General Instructions (Page 3 of 5) in pdf

SCHEDULE NR

NONRESIDENTS AND PART-YEAR RESIDENTS ONLY

If you are a nonresident or part-year resident of Maine, you must file a Maine long form (1040ME). Only

full-year residents of Maine may file a Maine short form (1040S-ME). If you file a short form return, you will be

treated as a resident of Maine for the entire year.

Nonresidents and part-year residents who receive income from outside Maine while nonresidents of Maine

may be able to claim a nonresident credit calculated on Schedule NR. This credit may be claimed only on the

Maine long form (1040ME). Residents of Maine may not claim a nonresident credit and should not complete

Schedule NR. Do not file Schedule NR if all your income is taxable by Maine. If your filing status on your federal

return was “Married Filing Joint,” and you elect to file a “Single” return with Maine, do not file Schedule NR (see

instructions for Schedule NRH in your income tax booklet).

Nonresidents and part-year residents must include a complete copy of their federal return

(including all schedules and worksheets) with the Maine return when filing, even if they are not eligible

to claim a nonresident credit.

Maine begins its income tax return with federal adjusted gross income, regardless of residency

status. Your tax is first calculated as if you were a resident of Maine for the entire year. Nonresidents and part-

year residents are then allowed to claim a credit (calculated on Schedule NR) based on the income that was earned

outside Maine while a nonresident of Maine. Do not begin the Maine return with only the income earned in Maine.

Do not subtract the income earned outside Maine as a negative income modification on Maine Schedule 1.

Schedule NR is designed to separate a nonresident’s or part-year resident’s income between Maine

source income and non-Maine source income. Maine source income includes the following:

1) All income received while a resident of Maine.

2) Salaries and wages earned working in Maine, including any taxable benefits related

to those earnings. Except, employees who do not ordinarily work in Maine do

not have to file if they worked in Maine for less than 21 days or, had no more than

$6,000 of earnings related to that work if they worked in Maine more than 20

days.

3) Distributive share of income (loss) from partnerships and S corporations operating

in Maine.

4) Shares of estate and trust income derived from Maine sources.

5) Income (loss) attributed to the ownership or disposition of real or tangible

personal property in Maine.

6) Maine State Lottery or Tri-State Lottery winnings from tickets purchased

within Maine on or after July 13, 1993.

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Schedule Nr - General Instructions Page 3