Multiple states

Forum|Forum|6 years ago
February 6, 2020
1 reply
2 views

Company resides in Massachusetts. I live and worked in Rhode Island but the company pays Massachusetts state tax. Do I file in Massachusetts or Rhode Island?

Best answer by AmyC

Both, in a special order. MA taxes MA sourced income. Since you are working for a MA based employer, you will need to file a MA return.

Prepare your non-resident MA return first. This creates your tax liability.
THEN prepare your resident state return of RI 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.

AmyCAnswer

Level 15

Both, in a special order. MA taxes MA sourced income. Since you are working for a MA based employer, you will need to file a MA return.

Prepare your non-resident MA return first. This creates your tax liability.
THEN prepare your resident state return of RI 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.

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