Maine nonresident state tax filing 2019

[phranc4]

I found this on the Maine Gov site: Minimum taxability thresholds. A nonresident individual working in Maine as an employee is not required to pay a Maine tax or file a Maine return on income from personal services unless that individual works in Maine for more than 12 days and earns or derives income from all Maine sources totaling more than $3,000. Up to 24 days performing certain personal services, such as training and site inspections, are not counted against the 12-day threshold. Also, generally, a nonresident individual present in Maine for business for no more than 12 days and earning no more than $3,000 from business activity in Maine is not required to pay a Maine tax or file a Maine return on that income.

I worked in Maine for only 8 days, but made over $3,000. Based on the statement above, I should not have to file Maine State Taxes. My employer did withhold state taxes for Maine and TurboTax is calculating that I actually owe even more to Maine than what my employer withheld. If, technically, I shouldn't even have to file taxes for Maine, how is TurboTax coming up with the calculation that I owe even more than what was already withheld?

[DaveF1006]

According to the website,  a nonresident individual present in Maine for business for no more than 12 days and earning no more than $3,000 from business activity in Maine is not required to pay a Maine tax or file a Maine return on that income. if you made more than $3000, this is taxable.

[phranc4]

I read it to mean it had to be both 12 or more days and $3,000 or more, not or.

Thank you.

[michaeleric76]

Yes, the statement means that both are required (AND) to AVOID paying taxes on the income, not to be liable for paying taxes.

Both have to be true to avoid paying tax:

1) You did not make more than $3,000

2) You did not work more than 12 days

[ErnieS0]

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.