Code of Maine Rules
18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
125 - BUREAU OF REVENUE SERVICES
Chapter 807 - RESIDENCY
Section 125-807-08 - Military personnel

Universal Citation: 18 ME Code Rules ยง 125-807-08

Current through 2024-38, September 18, 2024

A. Service member. A military service member's legal residence does not change solely because of a change in duty assignment. The legal residence designated at the time of entry into the service remains the same until the member establishes a new legal residence. A completed DD Form 2058, "State of Legal Residence Certificate," is evidence of a change in domicile.

1. Nonresident service member: The military income of a nonresident stationed in Maine will not be taxed by Maine, nor will income from intangible sources, such as interest and dividends. However, additional wages earned performing services at a non-military job in Maine or income from operating a business in Maine are all subject to Maine incometax.

2. Resident service member: Subject to the provisions of 36 M.R.S. §5122(2)(LL), military compensation earned by a Maine resident service member for service performed outside Maine under written military orders will not be taxed by Maine for:
a. Active duty service in the active components of the US Army, Navy, Air Force, Marines, or Coast Guard by a service member whose permanent duty station during such service is located outside Maine; and

b. Active duty service in the active or reserve components of the US Army, Navy, Air Force, Marines, or Coast Guard or in the Maine National Guard by a service member in support of a federal operational mission or a declared state or federal disaster response when the orders are either at federal direction or at the direction of the Maine Governor. A "federal operational mission" is limited to activity in support of overseas deployment and excludes standard duty activity, such as training and administrative activities.

An individual domiciled in Maine who is a member of the Armed Forces of the United States, the National Guard, or Reservists who received federal orders for active duty continues to be domiciled in Maine for income tax purposes for the period of time stationed outside of Maine. The residency safe harbors in section .06 may apply to a service member or spouse if eligibility requirements are met.

B. Spouse of a service member.

1. Residency of a military spouse. For tax years beginning on or after January 1, 2009, the spouse of a service member does not lose or acquire residency or domicile for income tax purposes when the spouse is in a state solely to be with the service member in compliance with the service member's orders. The nonresident spouse of a nonresident service member will not be considered a Maine resident individual if the spouse is in Maine solely to be with the service member who is in Maine in compliance with that service member's orders and the residence or domicile is the same for the service member and the spouse. In addition, for tax years beginning on or after January 1, 2018, if the spouse of a nonresident service member has elected under 50 U.S.C. § 4001(a)(2)(B) to use the same residence for purposes of taxation as the nonresident service member, the spouse will not be considered a Maine resident individual.

2. Income of a military spouse. Income earned from services performed in Maine by the nonresident spouse of a service member is not Maine-source income subject to Maine income tax if the spouse is in Maine solely to be with the service member who is in Maine in compliance with orders.

Disclaimer: These regulations may not be the most recent version. Maine may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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