Taking a 3 - 6 month contract in NH. Can I rent in NH and avoid MA taxes? (income)

[cricket_2010]

I am thinking of taking a 3-6 month contract in NH. I know if I live (rent) in MA, I have to pay income tax regardless of what state I work. Can I rent in NH and avoid state income tax for the time I work in NH?

[sgthoskins]

Yes

[BF66389]

Originally Posted by sgthoskins

Yes

Seconded...

[over40]

maybe not. depends where your primary domicile is for tax purposes.

[GotBackHome]

as far as NH is concerned: if you live in NH and work in NH, NH claims no income tax on earned income. However, depending on the state you live in the rest of the time, they may choose to tax you on it anyway regardless of where you earned it. you may want to check with an accountant where you currently live.

[skinut74]

if your only concern is avoiding a state income tax from mass., there are ways to do it(see an accountant for that info). but it might be a good idea to look at all the related costs eg. moving ,renting, apt setup etc. vs. the amount of tax money saved.

[bentlygrad]

If you work and NH and live in NH you do not have to pay taxes for the period you are working there. If you live in MA and work in NH you will be subject to income taxes in MA. I suggest you look for housing in NH (it is cheaper there anyway).

[notdancingqueen]

Maybe -- it depends on how you set thing up.

MA will not let you apportion your W-2 income unless your employer does it for you. That means that if you live in NH and work in MA, you have to pay MA tax on whatever of your personal income appears on your MA W-2.

[dubthang]

Remember, you need to live in NH for 181 (iirc) days to be considered a full time resident. I did something similar. I worked in Mass, but kept a NH address (with a P.O. box) to avoid MA tax about a dozen years ago or so. It worked fine, but there is a ton of paperwork to fill out come tax time.