Here is my situation -
My questions are:
1. Do I file a part year resident(July to Dec) as well as a non-resident(May 11 to June 30) tax form for MA.
2. Do I need to file taxes in PA for the 50 day period (May 11 to June 30) I stayed there but worked for a MA employer?
3. Which state do I pay tax to based on the interest income I earned in 2020?
Thank you!
There is no need to file two types of returns, the Part-Year Resident is sufficient. Prorate your interest for the amount of time you lived in each state.
Part-Year Residents of Pennsylvania. Part-year residents are subject to PA personal income tax on all income earned, received and realized from all sources when residents of PA. Part-year residents are also subject to PA tax on income earned, received and realized from sources within PA when they were not a PA residents. Part-year residents are not subject to PA tax on ordinary interest, dividends, gains, intangible property or gambling and lottery winnings from PA sources while a nonresident. Some exceptions apply; see below for additional detail.
MA
As a part-year resident, you're generally taxed on all your income while you're a resident of Massachusetts, received from sources inside or outside of Massachusetts.
Massachusetts gross income is income earned from all sources while a Massachusetts resident.
Thanks @ColeenD3,.
Follow up question, for the period when I was living in PA but working for an MA employer, which state should the tax be paid to? I just noticed that no tax was withheld by my employer for that 50 day period.
PA, the state where you lived. MA says," As a part-year resident, you're generally taxed on all your income while you're a resident of Massachusetts."
Can you please clarify which state I am considered a resident of for 2020 if I lived in PA till June 30 and then moved to MA starting July 1?
I got my returns but at this point looks like I paid double tax for that 50 day period I lived in PA but worked in MA.
Is it correct to say that I am still required to pay tax in MA since it is MA source income for the 50 days while I lived in PA.
I should still report that income to PA since I resided in PA during that time but request a credit from PA for the tax paid to MA?
Thanks again.
MA has a category for both resident and nonresident combined, which you were for one month.
◗ You are both a nonresident and part-year resident if you meet the criteria above for both the part-year resident and nonresident categories. If filing as a nonresident and part-year resident, the Schedule R/NR must be completed.