Massachusetts work, NY corp, NJ residency

[MAJ]

My client lives in NJ and works for a NY Corp in construction.
They had him working in Massachusetts all year and provided him an extra payment each month for him to get an apartment.
He was there M-F and home on weekends. Most weekends.

He grossed 178k - $900 held for NY - but nothing for NJ. In NJ, I did COJ for both states --- but - MA.... Ummm...
Would his status be non-resident or part-year resident? Or Resident??
It appears RESIDENT based on my reading (183+ days in-state + income earned in-state). That truly stinks.
Is there anything else we can / should do??? Am I in left field looking for a ball that's in right field? or worse?

Thanks in advance.

[New York Enrolled Agent]

My client lives in NJ and works for a NY Corp in construction.
They had him working in Massachusetts all year and provided him an extra payment each month for him to get an apartment.
He was there M-F and home on weekends. Most weekends.

He grossed 178k - $900 held for NY - but nothing for NJ. In NJ, I did COJ for both states --- but - MA.... Ummm...
Would his status be non-resident or part-year resident? Or Resident??
It appears RESIDENT based on my reading (183+ days in-state + income earned in-state). That truly stinks.
Is there anything else we can / should do??? Am I in left field looking for a ball that's in right field? or worse?

Thanks in advance.

Not sure how MA operates but the 183 day rule usually requires a permanent place of abode as the second condition for residency. Opinion - no knowledge of how MA works but I would file a non-resident return for MA. Facts and circumstances control. Take an opinion FWIW.

[Lion]

He has a MA apartment.

[TAXNJ]

You can start here to see if it helps your scenario:

https://www.mass.gov/service-details/learn-about-legal-and-residency-status-in-massachusetts

[MAJ]

You can start here to see if it helps your scenario:

https://www.mass.gov/service-details...-massachusetts

Thanks.. Your page confirms what I read in the full manual. That's why I was leaning towards RESIDENT:

Legal residence is not in Massachusetts for entire year but you maintain a permanent place of abode in Massachusetts and spend more than 183 days of the taxable year in total in Massachusetts

Form 1

BUMMER for him. Owes in 3 states and the Feds. He'll be thrilled. He'll have 5 months of this year there as well and THEN he can be a part-year resident. Joyous events!

[ATSMAN]

I have a union steel worker who lives in MA with his family, has a primary residence here. He gets sent to NY, CT, RI on construction jobs and sometimes spends months in one state on a construction project. The employer usually provides for housing at the location either in a motel or apartment and shared with room mates (other workers on the job). The first year I prepared his tax return we did a conference call with the union's business agent and it was decided that we will file him as resident of MA and non resident of the other 3 states because his tax domicile is MA. His union contract and his pension is handled by the MA local union. So far NY,CT,RI has not challenged that position. I think other unions also operate in a similar manner.

So I think you will need to find out what i his tax domicile and which local union has his contract. More than likely NJ

[MAJ]

Update: Final status

Resident of NJ: Home state. Where he lives and his wife/children live. Paid from NYsource construction company.
COJ paid to MA and NY helped to reduce NJ tax.

Non-Resident of NY: Paid from NY and did a small bit of work in NY during 2020. Majority of work was in Mass. Zero work in NJ.

Resident of MA: Has an apartment but goes home to NJ domicile. Paid from MA source. spent 183+ days in MA.
MA also has COJ - So credits for taxes PAID in NJ and NY reduced his MA taxes to near zero.
______________
For 2021 we've already determined he'll be Part-Year resident of MA since he'll be out of there May 1st.


Thanks.

[ATSMAN]

MA has a flat tax and they apply almost the same rules to PY and non-resident as long as MA sourced income is taxed in MA. For the credits they ratio it.