Any NH residents here who work in Maine while spouse works in Maine? Tax questions

[palesarah]

I cross-posted this in the Maine forum but figured I might get more responses here...

I have an interview Friday for a position in a Maine hospital- a hospital with a great reputation, on a unit I would be honored to work on. Dream job territory here! I considered applying to this hospital last year when I was trying to find out what my dream job would be, but ended up taking a per diem maternity position intending to cross-train or transfer to a similar unit in that hospital. I commute an hour, both ways, for my current job, and am making less money than I did at my previous job. This position in Maine should pay better, will be full-time with benefits, and will only be a few minutes more on my commute- it's just over an hour's drive. My husband, though, is very concerned about the Maine state income taxes. When his parents lived in New Hampshire (where we live now) his dad worked in Maine, his mom worked in NH, and they had to pay Maine state income tax on their combined income. Living on the seacoast, so close to maine, we heard the same from several of our friends and coworkers. He doesn't want to have to pay Maine state income tax when he's not living or working in Maine (and who could blame him?) and is so adamant about it that his solution would be for us to divorce and just live together (twisted thinking!) So he's stressed out because I'm only working part-time right now without benefits because my hours are not guaranteed and his job situation is unstable, so I applied for this job figuring at least we'd be able to have benefits and steady income on my end... and now he's stressed about his job, stressed about finances, stressed because I called out of work last night (chest cold with a fever- I could have dragged myself in but I don't think it's appropriate to work with newborns that sick, nor did I want to be "that nurse" who comes in sick, coughing on everyone, getting everyone else sick), and now stressed about being forced to pay taxes to a state he neither lives in nor works in.

I went to the Maine State's income tax website and found some info on "Schedule NRH"- married person electing to file single due to both spouses being nonresidents and only one having Maine-source income during the tax year.

Does anybody know anything about this? It seems to be an incredibly complicated form; I'll have to read it over better tomorrow when I'll less sick & less tired... I'm certainly tired of being sick, lol.

Can anybody here on allnurses shine some light on this? Do nonresidents really have to pay state income tax on both spouses? Will using the Sch NRH mean I'll only have to pay Maine state taxes on my own income? I would appreciate any help given!

[kukukajoo, LPN]

Last I knew you had to pay income tax on both incomes wether or not they both worked there.

I would check it out by completing ficticious tax returns as a test to see how bad the hit would be. Compute your income and see if filing singly is diferent than filing married and then do both with just your income and not hubby's. This way you can get a clear picture of how much more it will cost you to work there in Maine.

Good luck!!

[T-BoRN]

Dear palesarah

I don't know about this year. I have just gotten hired at YH and my wife and I live in Durham. She doen't work in ME. I too have heard about this fallacy of the tax system of ME. I am not too sure of how it will work but check out this web page if you haven't already. I am not sure if it helps. I am kinda tax illiterate.

http://mainegov-images.informe.org/revenue/forms/1040/2005/SchedNRHDoc05.pdf

NHDEMN

[kukukajoo, LPN]

This is not a fallacy and WAS once the way it worked and was even challenged and found constitutional as of a few years ago. I have had friends get nailed for this taxwise.

I have not kept current on the situation as I am no longer affected and it may have changed in the past few years, but I promise you it is no fallacy.

In reviewing the page you suggested, it sounds like things may have changed but there are a lot rules and exceptions which make it seem complicated. So if you are married, you have to file as single so that your spouse's income is not taxed. I wonder if you end up paying more.......