How does Maine tax remote workers?

There are a few situations to consider. You may fall into more than one category.

1. I lived in Maine.
• If you're considered a full-year or part-year resident of Maine, you'll be taxed on all income earned from any source during your time of residency. Be sure to file the appropriate return.
2. I worked remotely from Maine.
• Maine taxes income earned for personal services performed while in Maine (even if you're a nonresident). This includes remote work for an employer or clients based outside Maine if you were physically in the state while doing the work.
• You may be able to claim a credit for taxes paid to another state on your resident return for any income required to be reported in multiple states.
3. My employer was based in Maine.
• If your employer was based in Maine, they may have withheld Maine taxes from your wages as shown on your W-2. However, as long as you didn't live or work in Maine, you won't owe Maine taxes on those wages and can file a nonresident return to claim a refund of those withholdings.
• If your employer didn't withhold Maine taxes and you were a nonresident of Maine, you probably don't need to file a Maine return at all unless you otherwise have a Maine nonresident filing requirement.

If your wages were minimal and you didn't do any other business in Maine, it's possible you will be exempt from filing regardless of residency. See the Maine 1040ME instructions  for more information.