Massachusetts / New Hampshire

[Bill Tubbs]

New client lives in NH (does NOT have income tax on wages) and works in MA (has income tax on wages). Normally I would say that he would need to report all the income he earned in MA on a MA non-resident return, and that he does not get a credit in NH for income taxes paid to MA since NH does not have an income tax on wages. But, client "heard" that there may be an exception that he would not have to report all wages to MA -- any ideas?

My thoughts would be:
a) if there were any days that he worked from his home in NH -- would that be taxable to MA?
b) days that he was on customer sites in various other states -- would that be taxable to MA? (Those amounts may be taxable to the other states though.)

Bill

[Bill Tubbs]

Anybody??

no responses yet... anybody from Mass or NH ?

Bill

[mwarney]

What kind of work does he do? Are his wages reported on a W2 as MA wages? Where is his employer located? As a non-resident, any work performed outside of MA is not taxable to MA. If he works in other sates, he may have taxes due in those states. In general, as a NH resident, it is not enough to simply have wages paid from a MA entity, he would also need to perform the work inside MA for those wages to be taxable to MA.

[Bill Tubbs]

MA source

What kind of work does he do? Are his wages reported on a W2 as MA wages? Where is his employer located? As a non-resident, any work performed outside of MA is not taxable to MA. If he works in other sates, he may have taxes due in those states. In general, as a NH resident, it is not enough to simply have wages paid from a MA entity, he would also need to perform the work inside MA for those wages to be taxable to MA.

He works for a MA employer in the computer industry -- receives W-2.

I was wondering about the MA-source income earned while working outside of MA -- you say that would not be taxable, which agrees with what I thought the instructions were saying. Some states like to tax source income from their state and didn't know if MA was one of them. Thanks.

Bill

[mwarney]

He works for a MA employer in the computer industry -- receives W-2.

I was wondering about the MA-source income earned while working outside of MA -- you say that would not be taxable, which agrees with what I thought the instructions were saying. Some states like to tax source income from their state and didn't know if MA was one of them. Thanks.

Bill

Honestly, I don't think any state has the right to impose tax on income just because the check originated in that state. I for one, would certainly dispute such a claim.