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If you meet apportionment rules (most commuters would not), then any allocation of W-2 income is done at the W-2 screen, in the federal section, not the allocation screens in the state program. That is, you have to use a workaround in TT to compensate for your employer's mistake in not doing the allocation when issuing the W-2.
"Massachusetts adopted a final version of the
previous emergency regulation which now says “all
compensation received for services performed by a
non-resident who, immediately prior to the
Massachusetts COVID-19 state of emergency was
an employee engaged in performing such services
in Massachusetts (emphasis added), and who is performing services
from a location outside Massachusetts due to a
Pandemic-Related Circumstance will continue to be
treated as Massachusetts source income subject to
personal income tax . . . and personal income tax
withholding.”
Reference: https://www.hodgsonruss.com/assets/htmldocuments/Telecommuting_5.22.20.pdf
Hi and thanks for the response.
The information you pasted applies to people working remotely due pandemic circumstances. If, prior to the pandemic, the employee already worked from home out of state on some regular schedule, those days are still eligible to be apportioned as they have been in previous years. Hence the information on TurboTax is incorrect.
Is that consistent with your understanding?
Q. If, prior to the pandemic, the employee already worked from home out of state on some regular schedule, those days are still eligible to be apportioned as they have been in previous years. Is that consistent with your understanding?
A. Yes.
Q. Hence the information on TurboTax (TT) is incorrect?
A. No. You can't expect TT to know the W-2 is wrong.
I'm not specifically familiar with the TT MA software. But, for the states I am familiar with, this is how you do it:
At the w-2 screen split the boxes 15-20 W-2 info into 2 lines. On the 1st line leave MA in box 15 but change the box 16 to the amount allocated to MA; leave the MA withholding in box 17. On the 2nd line put NH in box 15 and the NH allocated wages amount in box 16; leave box 17 blank. That should get TT to do the apportioning.
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