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Common questions about individual ME Schedule NR for Safe Harbor residents in ProConnect Tax

by Intuit Updated 8 months ago

Below are solutions to frequently asked questions about generating Maine Schedule NR for Safe Harbor residents in an Individual return in ProConnect.

What is a Safe Harbor resident in Maine?

A Safe Harbor resident is a person who domiciled in Maine but isn't a Maine resident for income tax purposes. Individuals can either fall under the General Safe Harbor or Foreign Safe Harbor category. Refer to the Residency "Safe Harbors" Guidance Document for more information on about who qualifies as a Safe Harbor resident.

How do I generate the Maine Schedule NR for a Safe Harbor resident in the program?

  1. From the Input Return tab, go to General  Client Information.
  2. Make sure the box labeled Full Year Resident? is not checked.
  3. From the Input Return tab, go to State & Local Part-Yr/Nonres. Information  ME Part-Year/Nonres. Information.
  4. Check the box labeled "Safe Harbor" resident.

If you select Safe Harbor as the client's residency status, make sure the Full Year Resident? box isn't checked in Client Information.

Do Safe Harbor residents pay taxes on Maine income?

Yes. Safe Harbor residents must pay Maine tax on all income from work performed in Maine. The resident must also pay Maine tax on all other income derived from Maine sources, including income derived from sole proprietorships, partnerships and S corporations, and capital gains from real or tangible property sold in Maine and income from rental of Maine property.

Refer to the Maine Revenue Services Guidance to Residency Status for more information.

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