Tax Question: Live in NH but work in MA (2015, credit)

[Asgardian]

Will MA still take the full 5.5%?


Wife works in NH so she is all set if we do married filing separate ?


I work at least 8 days a month at home in NH.


Any advice much appreciated.

[Wells5]

For federal income tax, file a joint return. If wife has no earned income in MA, she does not need to file a MA state return. You should file a "married filing separately" MA return for earned income from MA sources. Whether you can proportion your earned income between working in MA and at home with respect to MA income tax is a questioned best answered by an accountant. But I would take a chance and proportion it, attaching an explanation to the return.

If you and wife have interest and dividend income, you must file a joint NH income tax return.

[Nonesuch]

Originally Posted by Asgardian

Will MA still take the full 5.5%? ... I work at least 8 days a month at home in NH. Any advice much appreciated.

In the future, see if your employer will indicate the percentage of your time spent working on-site in MA on your W2, this makes filling as a non-resident much easier.

For your 2015 taxes, just a letter signed by your employer should be suffice to backup your non-resident return, follow the directions in the Form 1 NR/PY booklet.

[gf2020]

Massachusetts' income tax rate was 5.15% in 2015, not 5.5%, and has decreased to 5.1% for 2016.

As mentioned above, get a letter from your employer stating that you have a flexible work arrangement where you work 2 days per week from home. You will only be responsible for the 60% of your income that was earned in Massachusetts.

[seamusnh]

I recently started working in MA after many years in NH. When I last filed taxes in MA, there was no requirement for a letter from one's employer. The tax form instructed you to calculate the number of days you were actually in the state compared to not in the state and prorated the taxes. I included the days I worked from home and the days I traveled on business... There was no proof, per se, but I probably wouldn't survive an audit by the state of MA....

[robr2]

Originally Posted by seamusnh

I recently started working in MA after many years in NH. When I last filed taxes in MA, there was no requirement for a letter from one's employer. The tax form instructed you to calculate the number of days you were actually in the state compared to not in the state and prorated the taxes. I included the days I worked from home and the days I traveled on business... There was no proof, per se, but I probably wouldn't survive an audit by the state of MA....

And that is why a corrected W2 or a letter from your employer is required when filing your taxes. Too many people took advantage of state and now everyone has to deal with the consequences.

[tdso]

Originally Posted by robr2

And that is why a corrected W2 or a letter from your employer is required when filing your taxes. Too many people took advantage of state and now everyone has to deal with the consequences.

Any idea what such a letter would have to contain? In a similar situation now and my boss has asked me to draft the letter and I have no idea what to write...other than the fact that I work from home a set number of days...

[robr2]

Originally Posted by tdso

Any idea what such a letter would have to contain? In a similar situation now and my boss has asked me to draft the letter and I have no idea what to write...other than the fact that I work from home a set number of days...

The state doesn't specify what has to be in the letter:

Nonresident/Part-Year Resident Income, Exemption, Deduction and Credit

I would just make it honest, simple, and straight forward:

Dear MA DOR

TDSO is an employee of Amalgamated Widgets and Thingamabobs. TDSO worked XX% outside of the state of Massachusetts. As such, only $YY was earned in the state of Massachusetts.

Signed,

Mr. Spacely.