Pennsylvania Department of Revenue. MA taxes my income (NH does not tax income), so do I need to fill out a state form for NH, or can I just fill one out for MA. You won't pay taxes on the same money twice, even if you don't live or work in any of the states with reciprocal agreements. You'll just have to spend a little more time preparing multiple state returns and you'll have to wait for a refund for taxes unnecessarily withheld from your paychecks. If a long commute means that you will likely need to get a new car every 5 years instead of 10, that’s a large expense tha. In turn you may hire landscapers to take care of your yard instead of doing it yourself. As many in New England know, Massachusetts has an income tax. Secondly, state taxes paid are capped at $10,000 whether filing single or joint. New Hampshire To Sue Massachusetts Over Remote Worker Income Tax - Concord, NH - After the Mass. I grew up in Massachusetts, and my father worked in Manchester, NH for a while. I live in Massachusetts, but work in New Hampshire. But considering possible additional expenses because of having less time is an important aspect of fine tuning your budget. That means none of your investment income (dividends/capital gains) or interest is taxable to Massachusetts. ADV Sponsors. tps://www.mass.gov/guides/personal-income-tax-for-residents#:~:text=Introduction,-5.05%25%20personal%20income&text=For%20tax%20year%202019%2C%20Massachusetts,gains%20are%20taxed%20at%2012%25. Freedom from income taxes is a New Hampshire delight: The Granite State is one of nine that don’t tax ordinary income. Favorite Answer As a MA resident, MA will tax your world-wide income from all sources. In 2019 the tax rate was 5.05% but dropped to a flat 5% starting January 1st, 2020.1 If you live in MA, more or less all income is going to be taxable (wages, interest, dividends, etc.). Massachusetts Taxes Massachusetts charges a 5.3 percent income tax to all taxpayers, including New Hampshire residents, who earned Massachusetts source income during the tax year. As of this writing the review has not been completed, and whether this order will stand for NH residents working in MA is currently unknown. At a press conference Monday, Republican Gov. With that tax savings you could go on a nice cruise or add some. I made approximately 67k paid 3k in mass taxes, got 500 back. Similar to the Federal return, taxpayers are entitled to certain deductions from their income. If I'm paying MA taxes shouldn't I file in MA? Knowing what income is taxable where is essential in knowing what to track. If you and your spouse are already working in MA, moving to NH probably won’t save you much on taxes. enses because of having less time is an important aspect of fine tuning your budget. more tax revenue from those who live in NH but work in MA. Can I change that after I've already selected YES? I believe NH will withhold the MA tax from your paycheck. Two more states: New Hampshire and Tennessee tax only dividend and interest income. Before the coronavirus pandemic hit, about 15% of New Hampshire commuters were driving to Massachusetts for work. But there is a lesser known tax that may be applicable to those residing in NH. Wages from work are still not taxable, just the dividends and interest. I have the same situation, is this still true? Accessed Oct. 20, 2020. Wages from work are still not taxable, just the dividends and interest. Expect to be able to prorate your income as you have been able to in previous years going forward. If you live in NH and work in MA, attributing additional income to MA can have a big tax impact. During the pandemic, many New Hampshire residents, who normally commute to Massachusetts for work, are working from home, meaning their … You might even end up paying more in taxes since, The tax savings for the commuting spouse may be a little, ir work income will end up being taxable, not anything else the, First, the standard deduction doubled. But that is the way of things; Massachusetts is clearly within its rights to tax income earned in the state. ur overall expenses. MA taxes anything they can get their hands on, including purchases made out of state (Use tax) and also any monies made in NH (or anywhere else in the world). See a pattern here ? have an NH state income tax filing, just check that you selected "no" Or possibly the long commute during the week means you have less time to get errands and chores done. Accessed Oct. 20, 2020. Logged freedomroad. If you don't have good records this year that's all right, because now you know what you'll need going forward. You’ll be paying unnecessary taxes if you do! If you would like help reviewing your tax situation and your overall financial plan we'd love to get in touch. Connecticut has filed an amicus brief in support of New Hampshire, as has Arkansas, Hawaii, Indiana, Iowa, Kentucky, Louisiana, Missouri, Nebraska, New Jersey, Ohio, Oklahoma, and Utah. Or possibly the long commute during the week means you have less time to get errands and chores done, . However, some income, like Social Security or certain pensions won’t be. I am currently getting a bunch deducted from my paychecks for Mass state tax. With that tax savings you could go on a nice cruise or add some additional savings to your retirement account (which is something we financial planners always think about!). Be able to prorate your income from New Hampshire residents travel to Massachusetts for 2020 include your are... File unemployment in the state, none of their income errands and chores done single $. 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