TomD8
Level 15

Deductions & credits

The work income of a non-resident of Massachusetts who never physically works within Massachusetts is not subject to income tax by the State of Massachusetts.  

 

A handful of states tax non-resident remote workers; Massachusetts is not one of them.

 

If you will never have to work within Massachusetts, then you should request that your employer cease withholding MA state income tax and begin withholding NC income tax.

 

If your employer cannot withhold NC income tax for you, then you should begin making quarterly estimated tax payments to NC.  Your income is 100% taxable by your resident state of NC.

https://www.ncdor.gov/taxes-forms/individual-income-tax/estimated-income-tax

 

At year's end, you will have to file a non-resident MA tax return, allocating zero income to MA, in order to obtain a refund of the incorrectly withheld MA taxes.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.