Hi,
I worked remotely physically in the state of MA for about 3 weeks in 2022 and am a resident of NC, with single status no children or dependents. My tax witheld in NC where I lived in 2022. The company is a global company with offices in major metropolitan cities.
I am very confused after reading the forms several times and have having difficulty understanding how to calculate the prorated personal exemption Massachusetts Non-Resident Tax form. I already filed my taxes for federal and NC state. However, I wanted to understand how this works by doing it by hand so I don't have to pay for the Turbotax state download just to figure out if I have to file.
Let's say I made $70000 income on my W2 in 2022 and worked in MA for 15 days. I can say that I worked in NC for 225 days for a total of 240 working days in 2022. My W2 witheld taxes from NC for all 2022 and not MA.
1. How do I calculate the prorated personal exemption amount? Can you please show the calculations. You can make assumptions if you don't have all the info and let us know what assumptions you are making.
2. If I made less than $8000 in MA source income based on the days working remotely in MA does that mean I have to file or do I have to do the proprated personal exemption calculation?
3. Do the deductions for the MA prorated personal exemption calculation include Medicare and Social Security taxes witheld from the W2?
Nonresidents
If you're a nonresident with an annual Massachusetts gross income of more than either $8,000 or the prorated personal exemption, whichever is less, you must file a Massachusetts tax return.
You are an individual nonresident if you are neither a full-year or part-year resident.
Nonresidents use Form 1-NR/PY: Massachusetts Nonresident/Part-Year Tax Return.
Source:
https://www.mass.gov/doc/2022-form-1-nrpy-massachusetts-nonresidentpart-year-tax-return/download
https://www.mass.gov/regulations/830-CMR-625a1-non-resident-income-tax
Thank you for your help
