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jennieG · Jun 7, 2007, 01:26 AM

Here is the situation:

I currently live in NH and work for a MA company. So far I have been filing as non-resident MA tax. I have a possibility to relocate to my home in NH instead of the office in MA. Here are my questions:

1. Will MA taxes still be deducted from my pay?
2. Should I continue to file the non-resident MA tax returns every year?
3. Since NH has no income state tax, how do I get my MA taxes (if deducted) paid back to me?

Any help is appreciated
Thanks
JennieG

AtlantaTaxExpert · Jun 7, 2007, 09:06 AM

Jennie:

1) Money will still be withheld for MA unless you tell the employer NOT to withhold the money.

2) If you work almost exclusively in NH, with only occasional visits to MA, then you should have NO MA tax liability.

3) File a MA tax return and claim ZERO MA income.

LIV3NDY · Mar 21, 2009, 01:51 PM

1.YES
2.YES
3.NO

It does not matter where you sit. It matters who issues your W-2. If you become a contractor and get a 1099, then your principal place of business is NH.
What Taxachusetts takes, it keeps.

ebaines · Mar 23, 2009, 10:01 AM

Originally Posted by LIV3NDY

1.YES
2.YES
3.NO

It does not matter where you sit. It matters who issues your W-2. If you become a contractor and get a 1099, then your principal place of business is NH.
What Taxachusetts takes, it keeps.

AtlantaTaxExpert is correct - if you don't live in MA and you don't work in MA then MA has no right to tax your wages, regardless of where your employer is headquartered. So if your employer deducts MA taxes (either by mistake or because you forget to tell them not to) then you file a MA tax return claiming $0 MA income, and you should get whatever was inadvertently withheld returned to you. The bad part of this is that you have to wait till the following year's tax filing season to get your money back. Obviously it's best to not have money deducted for MA withholding if you don't owe them taxes on your wages.