DanielV01
Expert Alumni

State tax filing

It depends.  When it comes to investment income, the "source" in this case is where you were at the time you earned it.  Since many investments (such as dividends), are reported yearly, it can be very difficult to determine exactly when they were earned.  Thus you can use another method of allocation:  percentages.  Use your wages as the guide.  Divide your Maine wages by the total amount of wages.  Then, use that percentage to multiply against your total dividends, unless, as you mention in your question, you actually do know the amount distributed while still in Maine.

The reason for this is that, when you live in a state, everything you receive as taxable income is taxable to that state.  Thus, your allocation is to determine which dividends you received in Maine, and which you received while in the other state.  If you know the amount; use it.  However, if you are not sure, then calculating the percentage is acceptable also.  

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