The Foreign Service Journal, February 2011

A F S A N E W S 64 F O R E I G N S E R V I C E J O U R N A L / F E B R U A R Y 2 0 1 1 tained a permanent 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 domi- ciliaries are 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 during that period. Maine’s tax rate in 2010 rises in three steps fromaminimumof 2 percent to amaximum of $1,013 plus 8.5 percent of Maine taxable income over $19,750 for single filers or $2,026 plus 8.5 percent over $39,550 formar- ried filing jointly. Write: Maine Revenue Services, Income Tax Assistance, 24 State House Station, Augusta ME 04333-0024. Phone: (207) 626-8475. E-mail: income.tax@maine.gov Web site: www.maine.gov/revenue MARYLAND: Individuals domiciled in Maryland are considered residents and are subject to tax on their entire income re- gardless 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 physically present in the state for an aggregated total of 183 days or more. For Tax Years 2007, 2008 and 2009 only, U.S. government employees can deduct up to $3,500 of any income earned overseas, in- cluding federal pay, if physically present in a foreign country (or countries) for 330 days in the 12-month period. Maryland’s tax rate is $90 plus 4.75 percent of taxable in- come over $3,000 up to $150,000 if filing singly and $200,000 if filing jointly; it then rises steeply to $52,322.50 plus 6.25 percent on taxable income over $1,000,000. In ad- dition, Baltimore City and the 23 Maryland counties impose a local income tax, which is a percentage of the Maryland taxable in- come, using Line 31 of Form502 or Line 9 of Form 503. The local factor varies from 1.25 percent in Worcester County to 3.2 percent in Montgomery, Prince George’s and Howard counties (seeWeb site for details for all counties). Write: Comptroller of Mary- land, Revenue Administration Center, Tax- payer Service Section,AnnapolisMD 21411. Phone: toll-free 1 (800) MD-TAXES, or (410) 260-7980. E-mail: taxhelp@comp.state.md.us Web site: www.marylandtaxes.com MASSACHUSETTS: Individuals domiciled inMassachusetts are considered residents and are subject to tax on their entire income re- gardless of their physical presence in the state. Salaries and most interest and dividend in- come are taxed at a flat rate of 5.3 percent. Some income (e.g., short-term capital gains) is taxed at 12 percent. Write: Massachusetts Department of Revenue, Taxpayer Services Division, P.O. Box 7010, Boston MA 02204. Phone: (617) 887-6367. E-mail: Link through the Web site’s “Contact Us” tab. Web site: www.dor.state.ma.us MICHIGAN: Individuals domiciled in Michigan are considered residents and are subject to tax on their entire income regard- less of their physical presence in the state. Michigan’s tax rate is 4.35 percent. Some Michigan cities impose an additional 1- or 2- percent income tax. Detroit imposes an ad- ditional 2.5-percent tax. Write: Michigan Department of Treasury, LansingMI 48922. Phone: toll-free (517) 636-4580. E-mail: treasIndTax@michigan.gov Web site: www.michigan.gov/treasury MINNESOTA: Individuals domiciled in Minnesota are considered residents and are subject to tax on their entire income regard- less of their physical presence in the state. Minnesota’s tax rate is either 5.35 percent, 7.05 percent, or a maximum of 7.85 percent on taxable income over $74,781 for single fil- ers or $132,221 for married filing jointly in 2010. Write: Minnesota Department of Rev- enue, 600 N. Robert St., Saint Paul MN 55101. Phone: (651) 296-3781. E-mail: indinctax@state.mn.us Web site: www.taxes.state.mn.us MISSISSIPPI: Individuals domiciled in Mississippi are considered residents and are subject to tax on their entire income regard- less 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 Rev- enue, P.O. Box 1033, Jackson MS 39215- 1033. Phone: (601) 923-7089. E-mail: Link through the Web site’s “Contact Us” tab. Web site: www.dor.ms.gov MISSOURI: An individual domiciled in Missouri is considered a non-resident, and is not liable for tax on Missouri income if the individual has no permanent residence in Missouri, has a permanent residence else- where and is not physically present in the state for more than 30 days during the tax year. Missouri calculates tax on a graduated scale up to $9,000 of taxable income. Any taxable income over $9,000 is taxed at a rate of $315 plus 6 percent of the excess over $9,000. File a return yearly with FormMO- NRI. Write: Individual Income Tax, P.O. Box 2200, Jefferson City MO 65105-2200. Phone: (573) 751-3505. E-mail: income@dor.mo.gov Web site: www.dor.mo.gov MONTANA: Individuals domiciled in Montana are considered residents and are subject to tax on their entire income regard- less of their physical presence in the state. Montana’s tax rate for 2010 rises in six steps from 1 percent of taxable income under $2,600 to a maximum of 6.9 percent of tax- able income over $15,600. See the Web site for various deductions and exemptions. Write: Montana Department of Revenue, P.O. Box 5805, Helena MT 59604. Phone: (406) 444-6900. E-mail: Link through the Web site’s “Contact Us” tab at the bottom of the page. Web site: mt.gov/revenue NEBRASKA: Individuals domiciled in Ne- braska are considered residents and are sub- ject to tax on their entire income regardless of their physical presence in the state. The 2010 individual income tax rates range in four steps from a minimum of 2.56 percent to a maximum of $1,086.91 plus 6.84 per- cent of the excess over $27,000 for single fil- ers, and $2,173.82 plus 6.84 percent of the excess over $54,000 for joint filers. If AGI is over $167,100 (both single and joint filers), an additional tax rate of between 0.172 and 0.428 percent is imposed.Write: Department of Revenue, 301 Centennial Mall South, P.O. Box 94818, Lincoln NE 68509-4818. Phone: (402) 471-5729. E-mail: Link through the Web site “Contact Us” page. Web site: www.revenue.state.ne.us NEVADA: Nevada does not tax personal income. There is a sales-and-use tax that varies from 6.85 percent to 8.1 percent de- pending on local jurisdiction. Additional ad