How to file as Statutory Resident in Maine in TurboTax

[JeffW4]

Hello,

My domicile is in Rhode Island, but I own a home in Maine and spent more than 183 days there last year. I believe I need to file in Maine as a statutory resident. TurboTax is showing my filing status on my Maine return as Nonresident. How do I change my status to Resident?

Thanks.

[DMarkM1 · Accepted solution]

It appears you would meet the  Maine statuatory residency requirements.  In the ME state interview you will select "Change Residency" and select "Full-year resident."  

If RI is your domicile state, as defined here, then you are considered a dual resident and will file two resident returns.  Be advised you will pay taxes to both states on all income from all sources.  

To avoid this double taxation you might consider taking steps to establish your domicile in the state where you spend more than 183 days.  Get a driver's license there and register to vote there for example. 

That way you will have only one resident state for tax purposes. This will allow you to file a non-resident return and then claim a credit for taxes paid to another state on your resident return.  

[JeffW4]

Thanks, DMarkM1, for confirming my statutory resident status in Maine. 

I don't see a prompt in the Maine section of my TurboTax to "Change Residency". Can you tell me a little more about where to find that?

Thanks.

[TomD8]

Rhode Island allows a credit in these dual residency situations.  This should alleviate some or all of the double taxation.  Here is the relevant statute:

http://webserver.rilin.state.ri.us/Statutes/title44/44-30/44-30-18.HTM

[DMarkM1]

In online products select "State" in the left hand menu

Select "Your State Returns" at the top of the page

Continue your Maine interview

Continue

Did you file a ME return last year?  Yes or No?

Did your address change?  Yes or No?

We"ve recommended a ME residency.  "Change Residency"

In Desktop products select "State Taxes" tab

Edit Maine

Continue

Did you file a ME return last year?  Yes or No?

Did your address change?  Yes or No?

We"ve recommended a ME residency.  "Change Residency"

An additional note for you.  If you spend less than 183 days in ME you can avoid the "Statuatory residency" rule.

[JeffW4]

Thanks again. One dumb question, if you don't mind. I use the TurboTax desktop version.  When I go to State Taxes, and choose Maine/Edit, TurboTax takes me to the last step I worked on, so I don't see the questions:

Did you file a ME return last year?  Yes or No?

Did your address change?  Yes or No?

Or anything about changing filing status. How do I get to answer those questions again?

Also, FYI about the 183 day rule and idea about changing my domicile to Maine - my current domicile is in Providence, RI and we have a homestead 40% property tax exemption for resident homeowners. I'll do the math but am afraid it would cost me to establish a residency in Maine because of the additional property tax I'd pay.

[DMarkM1]

When you go into the ME state interview go ahead and click all the way through the interview to get back to the summary page.  Then it should allow you to go back and enter from the beginning.  

I Understand on the possible net tax benefit situation with dual residency.  

[JeffW4]

I found I could also revisit questions by starting with Show Topics List and clicking on the relevant one.

Thanks again.

[JeffW4]

Thanks, Tom. Both Maine and Rhode Island give credits for taxes paid to another state, and I was able to secure them in Turbotax.