Should I be claiming two states on my W-2 Form I am employed in Massachusetts and live in Connecticut. I do not own a house, why am I paying taxes in two different state?

I think your talking about your W4, not W2.

If your wages from MA represent most of your income you probably do not need to have your employer withhold any taxes for CT, since your CT tax bill will be close to $0. However, if you have other sources of income (interest, dividends, capital gains, etc) you may want your employer to withhold some for CT so that you don't have to file estimated tax payments in CT.

Thank you for your question, being a former CT resident, I know that, like in most states, you will get a credit for any amounts paid to the non resident state. I provided information from CT's Department of Revenue Services.



Returns to be Filed in Connecticut and in the Other State
A Connecticut resident who works in another state that imposes an income tax will be required to file a nonresident income tax return for the other state and a resident return for Connecticut. The Connecticut resident will receive credit from Connecticut for income tax paid to the other state on income earned for services performed in the other state. The credit allowed will be the lesser of the tax paid to the other state or the tax which Connecticut imposes on the resident's out-of-state wages. The credit is claimed by completing Form CT-1040, Schedule 2, and attaching a copy of the return filed with the other state. The resident should contact the state in which he or she worked to determine the correct form to file to report the income earned in that state.


Estimated Payments to Connecticut May Be Required
The taxpayer who owes $1,000 or more in Connecticut income tax, after subtracting the credit for taxes paid to another jurisdiction, should make estimated tax payments. Estimated payments may be required if the taxpayer earns significant income that is not subject to withholding in the other state (such as interest income, capital gain, or dividends). Estimated payments for calendar year taxpayer are due on April 15, June 15, September 15, and January 15 and are made using Form CT-1040ES.


Source of Connecticut's Income Tax Guidelines regarding working in another state (http://www.ct.gov/drs/cwp/view.asp?a=1462&q=266294).