Under G.L. c. 62, § 6(a), Massachusetts residents who work and pay income taxes in other states are generally entitled to a credit against their Massachusetts income taxes in an amount equal to the tax paid to the other state. The credit is claimed on the employee’s annual return, Form 1, Schedule F.
Do you pay Ma income tax if you live in NH?
New Hampshire is known for not having an income tax. If you live in Massachusetts and have dividend income, it’ll be taxable to MA instead of NH, even if you work in New Hampshire. If you’ve lived in NH all your life, you may not have known about this tax because it does not apply to everyone.
Do you pay Massachusetts tax if you work in NH?
I live in Massachusetts, but work in New Hampshire. Does turbotax take that into account? My W2 for NH doesn’t show a massachusetts tax. Yes. If you claim MA as your state of residence in TurboTax, all state income from all sources (including NH) will be included on your MA resident state income tax return.
Can you live in NH and work in Ma?
Moving to NH will allow the spouse who is working in NH to exclude their income from MA taxes, which would not be the case while living in Massachusetts. The tax savings for the commuting spouse may be a little trickier this year because of the recent MA order.
Do you get a Massachusetts tax credit if you live in NH?
If you were living in a state that also has a state income tax, that state would give you a credit on their tax return for the amount of tax liability you have in Massachusetts. But, since you live in NH, a state without its own state income tax, they will not provide you with such a credit.
What happens if you work in Ma but dont live in Ma?
These deductions will offset your MA income, and you don’t have to live there to take advantage of them! If you only work in MA and don’t live there, not all income is taxable to you. Generally, only the income earned in MA is taxable to Massachusetts.
