Do I pay taxes if i am working in MA and living in NH? (Springfield: renting, car insurance)

[Orchidocean]

I work in MA and want to move to Southern NH. I hear that I will have to pay MA income tax as I would be an employee of MA. But as a resident of NH can i apply for a MA non-resident income tax return?

[gf2020]

You could live on the moon; if you work in MA, you pay tax in MA.

[2NorthernRednecks]

lol..yes you pay taxes to Ma. we live in NH and hubby works in Ma.

[brent s]

Yes you would. I live in MA, but work in NY, and I pay NY income taxes, not MA. I get a credit on my MA tax return for income taxes paid in another jurisdiction, and since taxes in NY are much much much higher than MA, I end up not having to pay anything to MA. If they were lower, i'd have to pay the difference to MA.

[Valerie C]

Taxation without representation is alive and well in the Commonwealth of Massachusetts. If you live in NH and work in MA, you will pay the MA income tax rate of 5.3%

Where in southern NH are you thinking of moving to? I don't know if you're renting or buying, but property taxes in NH can be quite a bit higher than what you're used to, depending on where you're coming from/to. Car insurance is less in NH, if that makes a difference...

[holden125]

Originally Posted by Valerie C

Taxation without representation is alive and well in the Commonwealth of Massachusetts. If you live in NH and work in MA, you will pay the MA income tax rate of 5.3%

A fate that could easily be avoided by not deriving one's livelihood in the Commonwealth of Massachusetts.

[Valerie C]

True, but when your employer decides to shift operations under 1 roof (corporate headquarters) and gives you the choice to stay employed or look for a new job, it's a tough choice but a 5.3% cut in pay is preferable to looking for a new job. Besides, longevity has its benefits. AND I suppose to look on the bright side, if a layoff were to occur, unemployment benefits could be claimed in MA (which I believe pays a higher rate than NH)

Originally Posted by holden125

A fate that could easily be avoided by not deriving one's livelihood in the Commonwealth of Massachusetts.

[holden125]

Originally Posted by Valerie C

True, but when your employer decides to shift operations under 1 roof (corporate headquarters) and gives you the choice to stay employed or look for a new job, it's a tough choice but a 5.3% cut in pay is preferable to looking for a new job.

In this economy, the pay cut probably is preferable to looking for a new job. Good news is that, if you itemize, you'll deduct the 5.3% from your federal taxes and get a third or 28% or 25% of it back anyway.

[lmkcin]

You pay income tax to the state you work in. It's not just Massachusetts issue. Every state has the same law.
My uncle works in Hartford and lives in Springfield, he pays CT income tax. He has to file MA income too as a resident, but gets a credit for it...ie he doesn't pay twice, that would be stupid. Actually he pays more in CT income than he would in MA's.

Since you would live in NH, you won't have to file for Income tax. But the income is payable to Massachsuetts, the state of employment.

Why do you think states are more interested in jobs creation than population-they want the income tax?

[RLCMA]

Yes you would pay a non-resident state tax in MA since you work here. I work in MD and VA and I pay taxes depending on what state I'm working in.