Schedule NR: Income Schedule for Nonresident Estates and Trusts or Resident Estates and Trusts with Nonresident or "Safe Harbor" Resident Beneficiaries (2024)
Maine · Maine Revenue Services · Used for tax years 2024
Maine Schedule NR calculates Maine taxable income for nonresident estates and trusts and the Maine-source income share of nonresident or safe harbor resident beneficiaries of resident estates and trusts. It reports federal and Maine-source income, estate or trust and beneficiary
Who files this form
For tax year 2024, Schedule NR is used by:
- Nonresident estates and trusts to determine their Maine taxable income.
- Resident estates and trusts with nonresident or “safe harbor” resident beneficiaries. These estates and trusts must complete a pro forma Schedule NR as if they were nonresidents to complete Column 6 of Schedule 2.
A nonresident estate or trust is subject to Maine income tax only on income derived from Maine sources.
What you'll need
- Completed Form 1041ME, including Schedules 1 and 2.
- A complete copy of federal Form 1041 to enclose with the return. Schedule NR uses figures from federal Form 1041 and its Schedule B.
- An attached schedule showing how you calculated Maine-source income for Schedule NR, lines 1 and 5, Column B.
- If applicable, the taxable income of the S corporation portion of an Electing Small Business Trust and unrelated business taxable income from federal Form 990-T.
Enter the estate or trust name as shown on Form 1041ME and its EIN on Schedule NR.
How to file
- Complete Schedules 1 and 2 on Form 1041ME, pages 3 and 4.
- Complete Schedule NR, lines 1 through 6. Attach the Maine-source income calculations for lines 1 and 5, Column B.
- Complete Schedule NR, lines 7 through 9. On line 7, Column B, include the net Maine-source additions and subtractions from Schedule 1 that relate to the income on Schedule NR, line 6, Column B.
- Complete Form 1041ME, page 1. Enter the Maine taxable income from Schedule NR, line 9, on Form 1041ME, line 3.
Enclose Schedule NR and a complete copy of federal Form 1041 with the completed Form 1041ME. For a resident estate or trust completing a pro forma Schedule NR, attach a copy to its Maine income tax return.
The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Leaving out attachments. Enclose Schedule NR and a complete federal Form 1041, and attach the Maine-source calculations for lines 1 and 5, Column B.
- Skipping the pro forma schedule. Resident estates or trusts with nonresident or safe harbor resident beneficiaries must complete it. Transfer line 4, Column B, to Schedule 2, line g, Column 6.
- Assuming line 5, Column B cannot exceed Column A. The form specifically notes that Column B may be larger.
- Guessing partnership figures. When calculating Maine-source gain or loss from selling a partnership interest, contact the partnership if you do not know the required property amounts.
Questions people ask
What is Schedule NR used for?
It determines Maine taxable income for a nonresident estate or trust and taxable income for nonresident and safe harbor resident beneficiaries of a resident estate or trust.
How are beneficiaries taxed?
Nonresident and safe harbor resident beneficiaries are taxed on their share of Maine-source distributable net income. Resident beneficiaries are taxed on their entire share of estate or trust income as though the estate or trust were a resident.
Are interest and dividends Maine-source income?
Generally, income from intangible sources, such as interest and dividends, is not Maine-source income unless attributable to a business, trade, profession, or occupation carried on in Maine. The instructions provide a separate rule for gain or loss from selling a partnership interest.
Where does the beneficiary portion of Maine-source income go?
Enter Schedule NR, line 4, Column B, on Form 1041ME, Schedule 2, line g, Column 6.