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View Full Version : I live in Maine but work in Massachusetts. How do I file my state tax return?


scbound07
Mar 29, 2010, 08:05 AM
I live in Maine but work in Mass. Mass. Took 4.7% tax out of my pay. Does this get applied to Maine's state tax of 8.5%? Does Maine and Mass have a reciprocity agreement? Any advice would be helpful.

slapshot_oi
Mar 29, 2010, 08:18 AM
I feel your pain, kind of. I work in MA but live in NH, so I'm only taxed once. I still don't like the idea of giving Mass a cent though.

According to this: State Reciprocal Agreements (http://www.payroll-taxes.com/articles/reciprocals.html), all New England states don't have any such agreement.

ebaines
Mar 29, 2010, 10:14 AM
You must pay tax to MA since you work there. And you must pay tax to ME since you live there. They do not have a reciprocal agreement. The good news here is that Maine gives you a credit for the taxes you had to pay to MA, so you aren't double taxed. The way you file is like this:
1. Complete a MA non-resident return, paying MA income tax on your MA earnings.
2. Then complete a ME resident tax form. You will report all your income and calculate a preliminary tax on that full amount. Then you take a credit for taxes paid to other jurisdictions - namely MA.

At the end of the day you will probably find that the total tax you pay to MA and ME combined is about the same as the tax you would pay just to ME if your job was located there.