Yes, you will pay some tax to Rhode Island (RI) as a nonresident. You will be taxed only on the money that was earned in RI.
For your resident return of Massachusetts (MA), you are required to pay tax on all of your worldwide income. They do not want you to pay tax on the same income twice so they have a credit for taxes paid to another state on the same income. As the resident state, because all worldwide income must be included, the credit allowed is the lesser of:
- the tax liability actually charged by the nonresident state, OR
- the tax liability that would have been charged by the resident state
Complete the nonresident state (RI) first, then complete your resident state (MA). TurboTax will calculate the credit automatically on your resident state when you complete them in the right order.
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