Credit for Tax Paid To Other Jurisdictions: Credit for Tax Paid To Other Jurisdictions (2025)
Maine · Maine Revenue Services · Used for tax years 2025
This worksheet calculates the Maine credit for income tax paid to another jurisdiction for tax year 2025. It reports income taxed by both jurisdictions, the taxes paid, and the allowable credit. Enclose it with Form 1040ME or Form 1041ME and a copy of the income tax return filed
Who files this form
This worksheet is for claiming a credit, not a separate filing requirement. Maine resident individuals, estates, and trusts, excluding safe harbor residents, may claim the credit if all of these conditions are met:
- The tax was paid to another state, a political subdivision of a state, the District of Columbia, a Canadian province, or a political subdivision of a foreign country that is analogous to a U.S. state.
- The tax relates directly to income received during the tax year covered by the return. Payments for prior-year tax liabilities do not count.
- The income taxed by the other jurisdiction came from sources in that jurisdiction.
Part-year resident individuals may claim the credit only for income earned during their Maine residency, excluding periods of safe harbor residency, and must meet the same conditions. Special calculations apply if they qualify for both this credit and the nonresident credit.
What you'll need
- Your Maine Form 1040ME or Form 1041ME and the applicable income modification or fiduciary adjustment schedules.
- A copy of the income tax return filed with the other jurisdiction. You must enclose it with this worksheet and your Maine return.
- A separate credit worksheet for each other jurisdiction if you claim credit for taxes paid to more than one.
- For the special part-year resident calculations, Schedule NR or Schedule NRH and Maine Worksheet B, as applicable.
- The Worksheet to Prorate the Tax Paid to Other Jurisdiction if the other jurisdiction taxed income not included on line 2d.
If you request a different method of calculating the tax eligible for credit, attach a worksheet showing your suggested calculation. Maine Revenue Services may request additional information supporting the credit before processing the return.
How to file
Complete the worksheet for tax year 2025 and enclose it with Form 1040ME or Form 1041ME. Also enclose a copy of the income tax return filed with the other jurisdiction. The supplied text does not give a mailing address or e-filing directions.
- Enter your name, SSN, and the other taxing jurisdiction.
- Enter the relevant Maine income and calculate the portion sourced to and taxed by the other jurisdiction, including applicable additions and subtractions.
- Calculate the income percentage on line 3 and the credit limits on lines 4a and 4b. Follow the special instructions if you are a part-year resident.
- On line 5, enter the smaller of lines 4a and 4b. Transfer it to Form 1040ME, Schedule A, line 14, or Form 1041ME, Schedule A, line 8.
For more than one other jurisdiction, complete a separate worksheet for each. Add the line 5 amounts and enter the total on the applicable Maine Schedule A line.
Common mistakes
- Using withholding on line 4b. Do not enter income taxes withheld. Follow the instructions for calculating income tax paid, excluding tax on income not included on line 2d and subtracting tax credits other than withholding and estimated tax payments.
- Including income earned while working in Maine. Do not include it on line 2a. This includes income earned while teleworking in Maine.
- Entering too much income on line 2a. It cannot exceed Form 1040ME, line 14, or Form 1041ME, line 1.
- Including income from the wrong residency period. Part-year residents must not include income earned while nonresidents or safe harbor residents of Maine.
- Including deductions in the proration worksheet. Do not include standard or itemized deductions or personal exemptions on that worksheet’s line 2.
- Continuing after a zero or negative proration result. If line 3 of the proration worksheet is zero or less, stop. You do not qualify for a credit.
Questions people ask
How much credit can I claim?
The allowable credit is the smaller of the Maine tax on income also taxed by the other jurisdiction, calculated on line 4a, or the eligible income tax paid to that jurisdiction, calculated on line 4b.
Can I claim credit for taxes paid to several jurisdictions?
Yes. Calculate each jurisdiction’s credit on a separate worksheet, then add the line 5 amounts and report the total on the applicable Maine Schedule A line.
What if the other jurisdiction taxed income that is not on line 2d?
Complete the Worksheet to Prorate the Tax Paid to Other Jurisdiction. If you believe it does not fairly represent the tax paid on income taxed by Maine, you may request another method by attaching a worksheet showing your suggested calculation. You will be notified if it is not approved.
What if both Maine and another state consider me a resident?
Individuals who are income tax residents of both Maine and another state, excluding safe harbor residents, may qualify for a dual resident credit under 36 M.R.S. § 5128. The instructions direct you to maine.gov/revenue/tax-return-forms for more information.