Work in MA, moving to RI (2014, credit, how much)

[kmariem5]

I currently work in MA, I'll be moving to RI. I'll be keeping my job but I am just wondering how it works with the taxes. Will I be paying in both states? Do I file returns in both?

[MikePRU]

I had the same situation for a short time where I was working in MA and living in RI. I also for a time lived in MA and worked in RI. I believe either way you have to file in both states. IIRC my income taxes were higher in RI but that was more than 10 years ago.

[mp775]

You'll file non-resident income taxes in MA (part year resident for this year) and resident income tax in RI. MA non-residents and residents pay the same income tax rate.

MA Non-resident/part year resident information: http://www.mass.gov/dor/individuals/...year-residents

RI credit for income tax paid to other states: http://www.tax.ri.gov/forms/2014/Inc...p_h.pdf#page=2, Schedule II, lines 23-29.

[massnative71]

You will file and pay to both states, but whichever state is higher you will only pay the difference between that and the lower state (if that makes any sense). It really depends how much you earn, which state is higher.

[mp775]

Rhode Island has a lower tax rate up to $135,500. But deductions and credits may differ, and any non-wage income (e.g., interest and dividends) will most likely be considered Rhode Island income, not Massachusetts income.

[massnative71]

Originally Posted by mp775

Rhode Island has a lower tax rate up to $135,500. But deductions and credits may differ, and any non-wage income (e.g., interest and dividends) will most likely be considered Rhode Island income, not Massachusetts income.

Then that has changed recently, RI used to be higher anywhere over 50K or so.

[Dm84]

You file an MA non-resident return and an RI resident return. RI uses brackets instead of a flat percentage but either way you'll be paying the higher tax amount, whether it winds up being MA or RI.

One thing to note is you won't be paying into the RI TDI system and won't be eligible to file claims on it.

[timberline742]

The OP is very much on the lower end of the payscale. Doubt taxes are much of a issue since they're trying to get state assistance.

[Dm84]

Originally Posted by timberline742

The OP is very much on the lower end of the payscale. Doubt taxes are much of a issue since they're trying to get state assistance.

The basic state tax forms are the same whether you make very little or a lot.

[timberline742]

Originally Posted by Dm84

The basic state tax forms are the same whether you make very little or a lot.

Well duh, but where certain advantages, jumps of rates, (etc) kick in are pretty irrelevant here.