The Foreign Service Journal - January/February 2018

84 JANUARY-FEBRUARY 2018 | THE FOREIGN SERVICE JOURNAL AFSA NEWS MA I NE Individuals domiciled in Maine are considered residents and are subject to tax on their entire income. Since Jan. 1, 2007, however, there have been “safe harbor” provisions. Under the General Safe Harbor provision, Maine domiciliaries are treated as non-residents if they satisfy all three of the following condi- tions: 1) they did not maintain a permanent place of abode in Maine for the entire taxable year; 2) they maintained a perma- nent place of abode outside Maine for the entire taxable year; and 3) they spent no more than 30 days in the aggregate in Maine during the taxable year. Under the Foreign Safe Harbor provision, Maine domiciliaries are also treated as non-residents if they are present in a foreign country for 450 days in a 548- day period and do not spend more than 90 days in Maine dur- ing that period. Maine’s tax rate in 2017 is 5.8 percent on Maine taxable income below $21,100 for singles and $42,250 for joint filers, 6.75 percent up to $50,000 for singles and $100,000 for married filing jointly, and 7.15 percent over those amounts. Write: Maine Revenue Services, Income Tax Assistance, P.O. Box 9107, Augusta ME 04332-9107. Phone: (207) 626-8475. Website: www.maine.gov/revenue Email: income.tax@maine.gov MARYLAND Individuals domiciled in Maryland are considered residents and are subject to tax on their entire income, regardless of their physical presence in the state. Individuals domiciled elsewhere are also considered residents for tax purposes for the portion of any calendar year in which they are physi- cally present in the state for an aggregated total of 183 days or more. Maryland’s tax rate is $90 plus 4.75 percent of taxable income over $3,000 up to $100,000 if filing singly and $150,000 if filing jointly. It then rises in four steps to $12,760 plus 5.75 percent of the excess of taxable income over $250,000 for singles or $15,072 plus 5.75 percent of the excess over $300,000 for married filers. In addition, Baltimore City and the 23 Maryland counties impose a local income tax, which is a percentage of the Maryland taxable income, using Line 31 of Form 502 or Line 9 of Form 503. The local factor varies from 1.75 percent in Worcester County (and for non-residents) to 3.2 percent in Baltimore City, and in Montgomery, Prince George’s, Queen Anne’s, Wicomico and Howard counties (see website for details for all counties). Write: Comptroller of Maryland, Revenue Administration Cen- ter, Taxpayer Service Section, 110 Carroll Street, Annapolis MD 21411-0001. Phone: (410) 260-7980, or (800) 638-2937. Website: www.marylandtaxes.com Email: taxhelp@comp.state.md.us MASSACHUSETTS Individuals domiciled In Massachusetts are considered residents and are subject to tax on their entire income, regardless of their physical presence in the state. Salaries and most interest and dividend income are taxed at a flat rate of 5.10 per cent for 2017. Some income (e.g., short-term capital gains) remains taxed at 12 percent. Write: Massachusetts Department of Revenue, Taxpayer Services Division, P.O. Box 7010, Boston MA 02204. Phone: (617) 887-6367. Website: http://www.mass.gov/dor Email: Link through the website’s “Contact Us” tab. MI CH I GAN Individuals domiciled in Michigan are considered residents and are subject to tax on their entire income, regardless of their phys- ical presence in the state. Michigan’s tax is 4.25 percent. Some Michigan cities impose an additional 1 or 2 percent income tax. Detroit imposes an additional 2.4-percent income tax. Write: Michigan Department of Treasury, Lansing MI 48922. Phone: (517) 636.4486 for income tax questions. Website: www.michigan.gov/treasury Email: treasIndTax@michigan.gov MI NNESOTA Individuals domiciled in Minnesota are considered residents and are subject to tax on their entire income, regardless of their physical presence in the state. Minnesota’s tax rate in 2017 is 5.35 percent on taxable income up to $25,390 for sin- gles or $37,110 for married joint filers, rising in three steps to a maximum of 9.85 percent on taxable income over $156,900 for single filers or $261.510 for married filing jointly. Write: Minnesota Department of Revenue, 600 North Robert St., St. Paul MN 55146-5510. Phone: (651) 296-3781 or (800) 652-9094. Website: www.taxes.state.mn.us Email: individual.incometax@state.mn.us MI SS I SS I PP I Individuals domiciled in Mississippi are considered residents and are subject to tax on their entire income, regardless of their physical presence in the state. Mississippi’s tax rate is 3 percent on the first $5,000 of taxable income, 4 percent on the next $5,000 and 5 percent on taxable income over $10,000 for all taxpayers, whether filing singly or jointly. Write: Department of Revenue, P.O. Box 1033, Jackson MS 39215-1033. Phone: (601) 923-7700. Website: www.dor.ms.gov Email: Link through the website’s “Contact Us” tab.