Hello,
I am a PA resident. I work remotely for an engineering outfit in MA. 100% of the work is performed in PA. My company withholds tax for MA. I don't set foot in MA, except for the annual Christmas Party. How can I get credit for taxes withheld to MA when filing in PA? Do I have to file as a non-resident in MA, even though I don't live there and none of the work is performed there?
MA does not tax non-residents who work remotely from a location outside MA.
But since MA taxes were incorrectly withheld from your pay, you’ll have to file a non-resident MA tax return, to which you allocate zero MA income, in order to receive a full refund.
Your income is of course 100% taxable by your home state of PA.
Yes, you will need to file a nonresident tax return for Massachusetts and a resident return for Pennsylvania.
If you're a nonresident with an annual Massachusetts gross income of more than either $8,000 or the prorated personal exemption, whichever is less, you must file a Massachusetts tax return.
You are an individual nonresident if you are neither a full-year or part-year resident.
Nonresidents use Form 1-NR/PY: Massachusetts Nonresident/Part-Year Tax Return.
Commonwealth of Massachusetts - Who Must File a Massachusetts Personal Income Tax Return
To ensure accurate calculations, always complete the nonresident return first if filing in multiple states because your resident state might give you a credit for any taxes paid in that situation.
Please see TurboTax FAQ: How do I file a nonresident state return?
MA does not tax non-residents who work remotely from a location outside MA.
But since MA taxes were incorrectly withheld from your pay, you’ll have to file a non-resident MA tax return, to which you allocate zero MA income, in order to receive a full refund.
Your income is of course 100% taxable by your home state of PA.