ErnieS0
Expert Alumni

State tax filing

You are correct about the Maine minimum taxability thresholds @michaeleric76.

 

To meet the exemption from Maine income tax, a nonresident working in Maine would have to meet both the $3,000 income and 12-day presence tests.

 

TurboTax probably calculated a higher tax than your withholding because Maine uses total income earned everywhere for the tax rate, whereas your W-2 was computed only on income earned in Maine.

 

For example, suppose earned $100,000 everywhere and $10,000 in Maine and the Maine tax on $100,000 was $6,000. Your nonresident ME tax would be 10% ($10k/$100k) of $6,000 or $600. That would be higher than the tax rate on $10,000 of income.

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