Dual Residence Reduction of Tax Credit: Dual Residence Reduction of Tax Credit (2024)
Maine · Maine Revenue Services · Used for tax years 2024
This worksheet calculates Maine’s Dual Residence Reduction of Tax Credit for tax year 2024 using income taxed by both jurisdictions and the tax each jurisdiction assesses on that income. Enclose it with Form 1040ME and a copy of the income tax return filed with the other jurisdic
Who files this form
For tax year 2024, individuals considered residents of both Maine and another state for income tax purposes may qualify for this tax reduction if the other jurisdiction allows a similar reduction.
Income that qualifies for the credit for taxes paid to another jurisdiction generally does not qualify for this credit. Income from intangible sources, such as interest and pension income, generally qualifies.
What you'll need
To complete the worksheet, have:
- Your taxpayer name and Social Security number, and the name of the other taxing jurisdiction.
- Form 1040ME, including Maine adjusted gross income from line 16 and Maine tax from line 20.
- The Worksheet for Credit for Income Tax Paid to Other Jurisdiction, including the relevant amount from line 2d.
- The types and amounts of income taxed by both jurisdictions as resident income, and the other jurisdiction’s tax paid on the income included on line 1c.
- A copy of the income tax return filed with the other jurisdiction. You must enclose this with Form 1040ME along with the completed dual residence worksheet.
How to file
Enclose the completed Dual Residence Reduction of Tax Credit Worksheet with Form 1040ME. Also enclose a copy of the income tax return filed with the other jurisdiction.
Enter the credit from worksheet line 8 on Form 1040ME, Schedule A, Other Tax Credits Worksheet, line 12.
The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Do not enter the amount withheld on line 4b. Enter the other jurisdiction’s tax paid on the income included on line 1c.
- Do not leave out the required attachments: the completed worksheet and a copy of the return filed with the other jurisdiction.
- Be aware that Maine Revenue Services may request additional information supporting the claimed credit before the return can be processed.
Questions people ask
Does the other state have to offer a similar tax reduction?
Yes. The worksheet says dual residents may qualify provided the other taxing jurisdiction allows a similar tax reduction.
Can income qualify for both this credit and the credit for taxes paid to another jurisdiction?
Generally, income qualifying for the credit for taxes paid to another jurisdiction does not qualify for this credit. Line 1 excludes income eligible for that other credit.
How is the credit calculated?
Divide the Maine tax on the eligible income by the combined tax assessed by both jurisdictions on that income. Multiply that ratio by the smaller of the two tax amounts. The worksheet calculates this through lines 4 through 8.
Where can I get help completing the worksheet?
Email income.tax@maine.gov with questions about completing the worksheet.