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Hello all - potential relocator here! I have a MA income tax question that I thought I'd ask here. I know that if you work from home in NH, you will not incur MA income tax for those days.
My husband's potential job will require a lot of travel - it may average out almost half of his working days will be spent traveling or out of town. Does this count towards "not working in MA" for income tax purposes or is it ONLY working from home?
Mass DOR will count all of the income shown on his W2 unless his employer is willing to apportion his wages correctly. He can do that on his own if the employer is unwilling to do so BUT he really needs to keep detailed records to substantiate where he worked anytime he is not in the Massachusetts office, in case of an audit.
You may also want to have an accountant prepare taxes rather than using one of the automated software packages. Even the 'premium' packages (TurboTax for Home & Business) will not recognize non-apportioned taxes if it is not on the W2.
Best bet: call an accountant for more info (better yet, maybe we have one or two kicking around here )
Quote:
Originally Posted by illinoisfamily2017
Hello all - potential relocator here! I have a MA income tax question that I thought I'd ask here. I know that if you work from home in NH, you will not incur MA income tax for those days.
My husband's potential job will require a lot of travel - it may average out almost half of his working days will be spent traveling or out of town. Does this count towards "not working in MA" for income tax purposes or is it ONLY working from home?
What happens if the employee is traveling to Maine, for example, for the day? Not working at home, not in his MA office, but in Maine? Does he pay income taxes in Maine? Or in MA? It seems odd there would be a loophole where he pays no state taxes for the day. Somebody alleviate my curiosity, please.
Hello all - potential relocator here! I have a MA income tax question that I thought I'd ask here. I know that if you work from home in NH, you will not incur MA income tax for those days.
My husband's potential job will require a lot of travel - it may average out almost half of his working days will be spent traveling or out of town. Does this count towards "not working in MA" for income tax purposes or is it ONLY working from home?
It's only "working from home" that counts and he'll need a letter from his employer verifying the amount of time spent working in MA vs. the amount of time spent working in NH.
Otherwise it would be like KCZ speculates, he would have to pay income taxes in every state that he works in, just like professional athletes do.
If you live in MA and work in NH, you are still responsible for taxes earned in NH or any other state.
States have a threshold for non-residents for when they have to pay taxes and file non-resident returns. Many employers may track that for you and withhold taxes on that basis but then it is up to you to file returns in those states. The vast majority of "road warriors" pay taxes only in their home state. I'm a sales rep covering all 6 New England states and file taxes in MA only where I live. I spend time in many other states and perhaps I should file in all the states I "earn" income in but most states realize the burden is too high on people like me.
Athletes and entertainers do pay and file taxes in every state they work in as most state have laws that specify they must. But for the millions of people who travel in their job, they file only in their home state unless they are told otherwise.
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