It doesn't sound like your RI is properly showing on your MA return. On your w2 entry, you need to have RI as the correct amount for RI and MA as the remainder of the income earned.
For example: $100,000 income with $55k earned in RI.
W2 shows RI $55k, MA 45k
Your resident state taxes all income but gives a credit for income taxed by another state. Please carefully follow these directions to prepare the states in a special order. You may need to delete both states and begin again.
- First, prepare your non-resident RI return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
- Then prepare your resident state MA return and it will generate a credit for your income already being taxed in the non-resident state.
- The credit will be the lower of the state tax liabilities on the same taxable income. You may owe your resident state, if they have a higher tax rate along with differences in how the taxable income is calculated.
It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.
View your forms and verify MA tax return shows all income earned and a credit for tax paid to RI.
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