For 2022 I have lived in CO for the entire year. I have worked for the same company the entire year. In March I was promoted to a new position and taxes started to be taken out for the state of MA where the job was based but I still lived only in CO. I was promoted again in November and now taxes are being taken out for the state of CO. Should I have been taxed for the state of MA where my job was based? Or should I have been only taxed for the state of CO?
No. If you lived and worked in Colorado, your employer should not have taxed for the state of Massachusetts.
Massachusetts says:
Massachusetts source income includes items of gross income derived from or effectively connected with any trade or business, including any employment, carried on by the taxpayer in Massachusetts, whether or not the non-resident is actively engaged in a trade or business or employment in Massachusetts in the year in which the income is received.
830 CMR 62.5A.1: Non-Resident Income Tax
Ask your employer if you can get a corrected W-2 and get your MA withholding back.
If not, you will have to file a non-resident MA tax return and report $0 MA income. Your refund will equal your MA withholding.
Massachusetts says:
If your employer mistakenly withheld Massachusetts income tax, file a Massachusetts Nonresident/Part-Year Resident Return, Form 1-NR/PY, to request a refund. Submit a letter from your employer along with the return, which verifies that you didn't work in Massachusetts.
No. If you lived and worked in Colorado, your employer should not have taxed for the state of Massachusetts.
Massachusetts says:
Massachusetts source income includes items of gross income derived from or effectively connected with any trade or business, including any employment, carried on by the taxpayer in Massachusetts, whether or not the non-resident is actively engaged in a trade or business or employment in Massachusetts in the year in which the income is received.
830 CMR 62.5A.1: Non-Resident Income Tax
Ask your employer if you can get a corrected W-2 and get your MA withholding back.
If not, you will have to file a non-resident MA tax return and report $0 MA income. Your refund will equal your MA withholding.
Massachusetts says:
If your employer mistakenly withheld Massachusetts income tax, file a Massachusetts Nonresident/Part-Year Resident Return, Form 1-NR/PY, to request a refund. Submit a letter from your employer along with the return, which verifies that you didn't work in Massachusetts.