topic Massachusetts Apportionment in State tax filing

Massachusetts Apportionment

dustyb — Wed, 26 Jan 2022 17:54:14 GMT

I'm a RI domiciled resident with W2s from MA and RI. The MA employment is mostly remote with only several days physically present in 2021. Before the pandemic, I was also part remote and part present, but more than just a several days physically present. To comply with the MA Convenience of Employer rule, I believe I'm supposed to use the pre-pandemic apportionment for the Jan to September 15th period even though it will result in more MA sourced income than the actual several days I was in the MA office. Obviously it will not correspond with the number on my MA state wages W2 which will include all income from the employer.

This message was confusing though:

You cannot apportion Mass. wages as shown on Form W-2. Do not use this worksheet if you know the exact amount of your Mass. source income. Only use when income from employment/business is earned inside and outside of Mass. and the exact Mass. amount is not known.

Does this mean you can never apportion a W2? That can't be right.

Re: Massachusetts Apportionment

AmyC — Wed, 26 Jan 2022 22:35:43 GMT

MA taxes income earned from a MA source or a MA job. Since you worked for a MA organization, you have MA income and must pay MA tax. You need to fill out the MA non-resident form first to create the tax liability. THEN prepare your resident state return and it will generate a credit for your income already being taxed. The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state.

It sounds like your income was all MA based. Unless you travelled to other states to perform work, which you don't mention.

Please see Form 1-NR/PY Instructions See page 3, number 2 as it describes what I believe are your circumstances.

Re: Massachusetts Apportionment

dustyb — Wed, 26 Jan 2022 23:10:02 GMT

Thanks for responding. I appreciate it, but I think I know all that. The MA W2 is definitely not all MA-based as described, neither pre-pandemic or during the MA emergency rule affecting The Jan 1 to Sept 13th period. I was more questioning that particular message on the MA NR/PY talking about the W2 and when you can’t apportion. I’m going to assume I’m reading too much into that, and I will use the apportion worksheet adding up the MA days and the RI days from both the emergency period and the period after Sept 13th.

Re: Massachusetts Apportionment

AmyC — Thu, 27 Jan 2022 00:04:05 GMT

Logic wins the day. You may get a letter asking how you came up with the numbers. As long as you have it all in a simple, easy to understand format, no problem.