@mitch783 wrote:
sorry .... we closed on our Maine home 08/22/2023 and arrived in FL 08/25/2023 and closed in Florida on our new home 08/28/2023. Planning ahead for our 2024 tax returns. Maine allows a couple a $500k credit on taxable gains for real estate as long as they lived in the home at least 2 years and we were over 3. We are way under that credit amount.
We did have some taken out of our IRA's while we were in Maine.
You are a part-year resident of Maine and will file a part-year resident return that reports and pays taxes on all your Maine-sourced income. Maine-sourced income includes all the income you earned or received while living in Maine (including social security, IRA, wages, investment sales, interest and dividends, and so on). Maine-sourced income also includes income that is "effectively connected" to the state of Maine even if you are not living in state. In your case, that is probably only the sale of the house, if the house happened to close after the date you made Florida your permanent residence. (Maine-sourced income could also include rental property you own in Maine, a Maine state lottery prize, and similar items.)
Maine will not tax IRA withdrawals or other income paid to you after you changed your state of permanent residency unless it is effectively connected to Maine, as described.
In Turbotax, you will indicate you moved away from Maine and indicate the date you left Maine as your permanent residence. (If you moved into a state with an income tax, you would also file a part-year resident return for the state you moved into, but Florida doesn't have state income tax of course.) Turbotax will need you to allocate all your different sources of income based on where you were living when it was paid. You need to pay attention to this because the program can't guess for you and your allocation will determine how much tax Maine takes. For example, you may have a 1099-R from your IRA showing total withdrawals of $30,000. If $10,000 was while you were living in Maine and the rest after you moved out, you will have to report that in the program.
