Live in NH, husband works in ME. Should we file ME nonresident income tax as single or married when I work in NH? When filing it seems to take my income into account.

[rseidor]

My husband and I live in NH which is a no income tax state.  My husband works in Maine and I work in NH.  We tried filing a ME nonresident income tax after entering our federal return information and it seems to take into account my NH income. When I remove my income from our federal return it says we are owed money from the state of Maine, but if my income is entered on the federal return it says we owe the state of Maine.  I feel like my income shouldn't have any bearing on the nonresident return since I work in NH.  Should my husband file his ME state income tax as single instead of married filing jointly like we did on our federal return?

[AnnetteB]

Based on the information in the instruction booklet for the Maine Income Tax Return, you are allowed to use a different filing status on the Maine return from what you used on the Federal return if you are both non-residents of Maine and only one person had income from Maine. 

As you go through the Maine return, you can choose to change your filing status.  Be aware that changing the filing status so that it is different from your Federal return will require you to mail the Maine tax return.  It will not be eligible for electronic filing. 

For more information you can take a closer look at the instruction booklet for the Maine Income Tax return by clicking here.  The description about how the tax is calculated for non-residents is on page 20.

[Hatfield82]

Will it still be true next year, in 2021, that we will not be able to file electronically if we claim Married for Federal and Single for State?

[AshleyLO]

@Hatfield82 Yes that will be the case if the laws do not change next year. You can find out more information here: https://www.maine.gov/revenue/faq/individual-income-tax