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Non Resident Sate Taxation Issue

Corporate Law Discussions

Non Resident Sate Taxation Issue

Postby Lindleigh » Sun Dec 04, 2016 6:56 am

s About Taxes)/Non Resident Sate Taxation Issue Advertisement Expert: John L. Tidwell - 2/4/2010 Hello:

We live in New Hampshire but both work in Massachusetts. My wife works about 80% in MA and 20% from her home office in NH. She had MA taxes taken out of her paycheck as if she was in MA 100% of the time. When we file MA Non-Resident taxes  is there a way to only pay MA taxes on the 80% of the time she was at the MA office? If so, how? Thank you very much for your help!

ANSWER: Joe:

The non resident tax return is the method for reporting wages earned in Massachusetts, when you do not live in that state.

John

---------- FOLLOW-UP ----------

Yes - thank you. I understand the concept of a NR tax return. That wasn't my question. MY question was about the # of days worked in MA vs NH and how to account for that. Please re-read my original question. Thank you very much for your help.

joe

ANSWER: Joe:

I read your question.  In tax law states do not determine the number of days you work in a state versus the number of days you do not work in a state.  If you are a resident of a state you file one return and if you are a non resident you file a different return.  If you are a non resident you usually pay less income tax than if you are a resident.  On your return you report the amount you you were paid in that state and on the other state you report what you earned that state.  If the company who filed the W-2 did not break the total wages paid in each state then its up to you to require the employer to correct the W-2 reflecting the wages in earned in each state.  There is no line on the form for you to do that.

John

---------- FOLLOW-UP ----------

Thank you for the detailed follow-up.  Living in NH, we have no state income tax and do not pay income tax on money earned while in NH. Yes, we must file the NR form for MA but there is also a section on the NR form to apportion the amount of income earned while in MA versus elsewhere. They then take a ratio to determine the exact amount of tax owed from earnings derived while working in the state of MA. This seems to be a common practice among other folks in our situation. The employer does not change their W-2's, rather provides the employee with a signed letter verifying the time worked out of MA so the apportionment can be made on the MA non-resident form. With your help, I think I answered my own question. Thank you for your time.
Lindleigh
 
Posts: 47
Joined: Sun Jan 05, 2014 2:54 pm

Non Resident Sate Taxation Issue

Postby Ata » Sun Dec 04, 2016 8:49 am

s About Taxes)/Non Resident Sate Taxation Issue Advertisement Expert: John L. Tidwell - 2/4/2010 Hello:

We live in New Hampshire but both work in Massachusetts. My wife works about 80% in MA and 20% from her home office in NH. She had MA taxes taken out of her paycheck as if she was in MA 100% of the time. When we file MA Non-Resident taxes  is there a way to only pay MA taxes on the 80% of the time she was at the MA office? If so, how? Thank you very much for your help!

ANSWER: Joe:

The non resident tax return is the method for reporting wages earned in Massachusetts, when you do not live in that state.

John

---------- FOLLOW-UP ----------

Yes - thank you. I understand the concept of a NR tax return. That wasn't my question. MY question was about the # of days worked in MA vs NH and how to account for that. Please re-read my original question. Thank you very much for your help.

joe

ANSWER: Joe:

I read your question.  In tax law states do not determine the number of days you work in a state versus the number of days you do not work in a state.  If you are a resident of a state you file one return and if you are a non resident you file a different return.  If you are a non resident you usually pay less income tax than if you are a resident.  On your return you report the amount you you were paid in that state and on the other state you report what you earned that state.  If the company who filed the W-2 did not break the total wages paid in each state then its up to you to require the employer to correct the W-2 reflecting the wages in earned in each state.  There is no line on the form for you to do that.

John

---------- FOLLOW-UP ----------

Thank you for the detailed follow-up.  Living in NH, we have no state income tax and do not pay income tax on money earned while in NH. Yes, we must file the NR form for MA but there is also a section on the NR form to apportion the amount of income earned while in MA versus elsewhere. They then take a ratio to determine the exact amount of tax owed from earnings derived while working in the state of MA. This seems to be a common practice among other folks in our situation. The employer does not change their W-2's, rather provides the employee with a signed letter verifying the time worked out of MA so the apportionment can be made on the MA non-resident form. With your help, I think I answered my own question. Thank you for your time.
Ata
 
Posts: 46
Joined: Wed Feb 12, 2014 5:54 am

Non Resident Sate Taxation Issue

Postby Laoidhigh » Sat Dec 10, 2016 6:23 am

Joe:

Thank you for the kind words.  I am in Tennessee and we do not have a state income tax and we are surrounded by 8 states that do have state income tax.  My Tennessee clients pull their hair out trying to report the wages paid to employees working in our state but living in the other states and or living here and working in one of the other states.  Hope you have fun.

John
Laoidhigh
 
Posts: 54
Joined: Mon Jan 06, 2014 2:34 am


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