Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 806 - NONRESIDENT INDIVIDUAL INCOME TAX › Section 125-806-08 - Maine taxable income computation for spouses filing as single individuals

Current through 2024-29, July 17, 2024
A married individual who files as a single individual must
				  file the Maine resident long form supplemented by Schedule NRH. In completing
				  Schedule NRH, the following steps must be followed in order to calculate the
				  filing spouse's share of the income, deductions, and other items, in order to
				  separate Maine-source income or loss from non-Maine-source income or loss and
				  to compute the nonresident credit:
A.
Individual's income share.
Earned income, including, but not
				limited to, income from wages, salaries, tips, and other items of value
				received from an employer for services performed or from self-employment is
				totally attributed to the spouse so compensated. For other income, if separate
				accounting has been maintained so that the income, expense and deductions can
				be separately determined and substantiated, the individual filing must report
				as if a separate federal return had been filed. Otherwise, the individual's
				share is 50% of all other income.
B.
Income ratio.
The ratio of
				the individual's share of total income is computed by dividing the individual's
				income share as determined in subsection A by the total income reported on the
				federal married joint return.
C.
Adjustments to income.
Adjustments to income appearing on the
				federal married joint return for Maine purposes is the actual distribution of
				adjustments, if supported by adequate records. Otherwise, apportion adjustments
				according to the income ratio as determined in subsection B.
D.
Federal adjusted gross
				income.
Income adjustments determined pursuant to subsection C are
				deducted from income share determined pursuant to subsection A in order to
				determine the individual's federal adjusted gross income.
E.
Maine adjusted gross income.
The Maine adjusted gross income for the individual filing is determined by
				adding to the federal adjusted gross income calculated in subsection D the
				individual's other income share, if any, that is taxable by Maine but not at
				the federal level, and by deducting any amount included in the federal adjusted
				gross income that is taxable at the federal level but not by Maine.
F.
Maine deductions.
The
				individual must elect either the Maine standard deduction for single
				individuals or the amount of the married joint federal itemized deductions less
				applicable Maine modifications multiplied by the electing individual's income
				ratio (as determined pursuant to subsection B). Instead of applying the
				individual's income ratio to the joint itemized deductions, the taxpayer may
				elect to utilize actual itemized deductions, less applicable Maine
				modifications, attributable to him or her if supported by adequate
				records.
G.
Maine
				exemptions.
The filing individual is entitled to his or her exemption as
				authorized by
				36 M.R.S.
				§5126 plus the number of dependent
				exemptions from the federal married joint return multiplied by the electing
				individual's income ratio (as determined pursuant to subsection B. No amount
				may be claimed for the other spouse's personal exemption.