Below are solutions to frequently asked questions about generating Maine Schedule NR for Safe Harbor residents in the Individual module of Lacerte.
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?
- Go to Screen 55, Part-Yr/Nonres. Information.
- Select Maine from the left navigation menu.
- Locate the Residency Information section.
- Mark the "Safe Harbor" resident checkbox.
If you select Safe Harbor as the client's residency status, make sure the Full Year Resident? box isn't checked on Screen 1, 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.