I need to file both in CA and MA - how do I avoid being double taxed?

Forum|Forum|3 years ago
December 5, 2022
2 replies
27 views

Hello,

My primary home (domicile) is in California, and that's where all my income comes from. I need to file a CA tax return.

I do maintain a permanent place of abode in MA and I did spent most of 2021 there, taking advantage of my company's remote work policy to work remotely from MA.

It seems obvious based on research that I need to file both in MA and in CA. But how should I be taxed? Should I put 100% of my income in the CA file return and no income at all on the MA tax return?
Should I split the income according to the time spent in each state?
Or should I put 100% of my income on the CA return and also 100% of my income on the MA return and somehow ensure that I will mot be taxed twice (not sure how to do that)?

Best answer by TomD8

Your situation is one of dual residency. You are a domiciliary resident of CA and a statutory resident of MA. Therefore each state may tax 100% of your income.

CA law allows CA residents to claim a credit on their CA tax return when they pay a net income tax to a state or U.S. possession on income that is also taxed by California, thus avoiding double taxation.

https://www.ftb.ca.gov/forms/2020/2020-540-s-instructions.html

File CA Schedule S with your CA tax return in order to claim the credit.

https://www.ftb.ca.gov/forms/2020/2020-540-s.pdf

TomD8

Answer

Alumni - Champ

Your situation is one of dual residency. You are a domiciliary resident of CA and a statutory resident of MA. Therefore each state may tax 100% of your income.

https://www.ftb.ca.gov/forms/2020/2020-540-s-instructions.html

File CA Schedule S with your CA tax return in order to claim the credit.

https://www.ftb.ca.gov/forms/2020/2020-540-s.pdf

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