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July 5, 2020
Question

Main resident Active Duty Milatary

  • July 5, 2020
  • 1 reply
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Income for Maine Residents who are Active duty military is not taxed in Maine if services are performed outside of the state.  If taxes were withheld during the year for Maine, how do I report to get full refund? 

1 reply

July 5, 2020

First, in the Personal Info/My Info section be sure to enter that you are a resident of Maine (if Maine is your home of record, this is true. whether or not you live there).

 

After you enter the W-2 for the taxpayer was was active duty, on the screen that says "Do any of these uncommon situations apply to this W-2?", be sure to check the box that these wages were active duty military.

 

For Military Personnel whose Home Of Record is Maine and if you are stationed in another state, to adjust your Maine taxable income:

In the State return, Update your Residency in the General Info section,

Then "Change Residency"

Then Choose "Safe Harbor Resident."

State of Domicile & state of legal residence, would be Maine.

 

After updating State Residency, visit the Adjustments section.

After several click under Adjustments, a page will populate titled "Nonresident Military Compensation Subtraction."

Enter in your Military wages here.

Additional follow-up pages will ask about your Military wages.  Enter only your Active Duty Military Wages as a subtraction.

 

Note that the wages on the W-2 marked as active duty military will be removed from Maine wages as soon as you adjust the residency. The purpose of the Nonresident Military Compensation Subtraction. screen is to let you adjust that W-2 amount, if you need to (because maybe you were stationed in Maine part of the year).

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