nonresident rental income in Maine

Forum|Forum|4 years ago
April 13, 2022
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I am a nonresident of Maine but own a rental property there. The house was rented for most of 2021 and I received a 1099-NEC for around $23,000, but after deductions and carryover losses from 2020 my income was only around $1200. Do I need to file a nonresident return in Maine? It looks like in some cases you don't need to file if your income is less than $3000.

PattiF

You do need to file a nonresident return for Maine to report income from a Maine rental property.

From the Maine Guidance Document:

If you are a nonresident or “safe harbor” resident of Maine, you must pay Maine tax on all income from work performed in Maine. You must also pay Maine tax on all other income derived from Maine sources, including income derived from sole proprietorships, partnerships and S corporations, capital gains from real or tangible property sold in Maine, and income from rental of Maine property. Except for certain sales of a partnership interest on or after July 1, 2005, a nonresident generally is not required to pay Maine tax on interest, dividends, alimony, pensions or other income from intangible sources unless such income is from property employed in a business carried on in Maine.

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