Schedule NR: Schedule for Calculating the Nonresident Credit (2024)
Maine · Maine Revenue Services · Used for tax years 2024
Maine Schedule NR calculates the nonresident credit for part-year residents, nonresidents, and safe harbor residents. It reports federal, Maine, and non-Maine income and uses the non-Maine income amount to calculate a credit against Maine income tax on Form 1040ME.
Who files this form
Use 2024 Schedule NR if all of these apply:
- You are a part-year resident, nonresident, or safe harbor resident of Maine.
- You are required to file a Maine income tax return.
- You have income that is not taxable by Maine.
- You use the same filing status on your Maine return as on your federal return.
Do not file Schedule NR if all your income is taxable by Maine. If your federal filing status is married filing jointly and you elect to file single on your Maine return, use Schedule NRH instead.
What you'll need
- Your Maine return, Form 1040ME.
- A complete copy of your federal tax return, including all schedules and worksheets.
- Worksheets A and B, if required, and Worksheet C if used.
- W-2 forms from other states and temporary duty (TDY) papers that support your non-Maine income on line 1c.
- Your Maine residency dates, if you were a part-year resident.
Worksheets A and B are available at maine.gov/revenue/tax-return-forms.
How to file
- Complete Worksheets A and B first, if required.
- Complete Form 1040ME, lines 1 through 20a, calculating Maine tax as if you were a full-year resident. Use your total federal adjusted gross income on line 14.
- Complete Schedule NR using the income amounts from Worksheet B and the applicable adjustments and modifications.
- Multiply Schedule NR, line 8, by line 7 to calculate the nonresident credit. Enter it on Schedule NR, line 9, and Form 1040ME, line 21.
- Enclose Schedule NR with your completed Form 1040ME. Include the required worksheets, complete federal return, and supporting W-2 forms and TDY papers.
The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Using the wrong schedule: Do not use Schedule NR if all your income is taxable by Maine or if you elect to file single in Maine while filing jointly federally.
- Leaving out attachments: Include your complete federal return, including all schedules and worksheets, and the required supporting documents.
- Skipping required worksheets: Complete Worksheets A and B, if required, before Schedule NR.
- Including the wrong modifications on line 5: Include only non-Maine-source income modifications attributable to your nonresident period. Do not include taxable refunds of state and local taxes.
- Not prorating the pension deduction: Prorate it based on the percentage of qualified pension income received as a nonresident or safe harbor resident.
- Missing the special ratio rules: On line 2, enter 0.0000 if line 1c is negative, or 1.0000 if line 1c is positive and line 1b is negative. On line 7, enter 0.0000 if line 6 is negative, or 1.0000 if line 6 exceeds Form 1040ME, line 16.
Questions people ask
What does the nonresident credit do?
Maine first calculates tax as if you were a Maine resident for the entire year, then reduces that tax by a nonresident credit based on your non-Maine-source income.
What income is taxable by Maine if I moved during the year?
A part-year resident is subject to Maine income tax on all income received while a Maine resident, plus income from Maine sources during the nonresident period.
What income is taxable by Maine for nonresidents and safe harbor residents?
They are subject to Maine income tax on taxable income from sources within Maine.
When can I use Schedule NRH instead?
If you file jointly federally, you may elect to file single in Maine using Schedule NRH when your residency status differs from your spouse's, or when both spouses are nonresidents or safe harbor residents but only one has Maine-source income. The nonresident or safe harbor resident spouse with no Maine-source income does not have to file a Maine return.