Who is right? My accountant or my co-workers?

dadecoste · #1 Jan 11, 2006, 11:53 AM

I presently live in a tax free state (NH). My primary office is in MA (has state taxes). My position requires that sometimes I must travel out of MA for 1 to several days during any calendar year. I also have been very recently approved to work from home (NH) 3 days each week. When filing my taxes in the past 10 years I usually owed MA additional taxes (I even have additional $$ deducted. I have an accountant (office in MA) who does my taxes who told me that I cannot get any relief from paying MA taxes because my salary originates in the state (MA) requiring the taxes? Is this true? I work side by side with individuals also living in NH who have told me that I should find another accountant because I should not be responsible for paying state taxes for those days that I actually work outside the state. Will I get any credit for the days that I work from my home in NH? I am beginning to think I need to find an accountant who lives in NH? I am very confused and look forward to your response.

Emmy · Jan 11, 2006, 12:54 PM

HI
Wow, I have the same problem except I live in Indiana and work in Illinois. It has always been my understanding you had to pay taxes from the state you worked in no matter where you reside. I am not, I repeat, not a tax specialist. You can call the IRS help line and get information without giving your name, (in case you are scared). Better to be safe than sorry. Penalties from unpaid taxes can ruin your life. Been there on that one.
Best of luck to you.
Emmy

RickJ · Jan 11, 2006, 01:06 PM

1. "Relief" your co-workers are claiming could be from the State or the Feds, and 2. There are about as many different interpretations of tax law as there are accountants....so if it were me I would

Talk to your accountant to let him know what your co-workers have said.

Ask him if he's well versed in both MA and NH tax law.

If he insists that your co-workers are wrong, ask him why. He should be able to cite a form or publication (verifiable on the IRS' site) where you can read it for yourself.

...it also would be beneficial to get another local accountant's opinion of the issue (after you confirm that he/she knows both state laws well).

...just my [sometimes less than] 2 cents worth...



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