state taxes when moving

Forum|Forum|4 years ago
March 28, 2022
1 reply
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My wife moved to a different state in November and began a new job there. I'm still living in our original state until I button up a few things. Do we have to file in the original state and the new state and file separately for state taxes?

MaryK4

Level 15

Can you clarify which states? Thanks! @dmileswolfe

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dmileswolfeAuthor

Level 2

Original state is Connecticut, new state is Maine.

ColeenD3

Level 15

You definitely have to report your income to CT. You can file Form NRH for Maine to file separately.

Form NRH

I did not live in Maine for the entire year. Do I have to file a return?

If you moved in or out of Maine during the tax year, you will generally have to file an income tax return with Maine. Anyone who is a resident of Maine for any part of the tax year, and has taxable Maine-source income, must file a Maine return. Anyone who is not a resident of Maine, but performs personal services in Maine for more than 12 days and earns more than $3,000 of income from all Maine sources, must file a Maine return. Up to 24 days performing certain personal services, such as training and site inspections, are not counted against the 12-day threshold.

If you established or relinquished your Maine residency during the tax year, you are a part-year resident for income tax purposes, regardless of when you changed your residency. For example, if you were a Maine resident, but moved to California on November 1st and became a California resident, you would be a part-year resident of Maine for that year.

Part-year residents, nonresidents and "safe harbor" residents must file a Maine return based on their total federal adjusted gross income. Your tax liability is first calculated as if you were a resident of Maine for the entire year. You are then allowed to calculate a nonresident credit on Maine Schedule NR that will reduce your Maine tax by the portion of the tax that is related to the income you earned outside the state while a nonresident or "safe harbor" resident of Maine.

For more information, refer to the Guidance to Residency Status and/or the Guidance to Residency "Safe Harbor" pamphlets. You can download copies of the pamphlets from our Guidance Documents page.

10. How do I complete Schedule NRH?

You must file a Maine Form 1040ME and Schedule NRH.

Read the instructions for Schedule NRH carefully. Read the specific instructions for each line on the schedule before you complete that line on the form.

If you filed a married joint federal income tax return, but you and your spouse have a different residency status, you may be able to use Schedule NRH. Also, if you and your spouse are both nonresidents or "safe harbor" residents of Maine, but only one of you has income from Maine, you may use Schedule NRH.

By filing Schedule NRH, you are choosing to be taxed as a single individual on your Maine tax return, even though you filed a joint federal return.