MA tax return question for NH resident

[Anonymous]

I'm NH resident that is working for MA-based company. I work a hybrid schedule that is 50% in the MA office and 50% work from home in NH. My 2022 W-2 listed all my income as Massachusetts source income.  I talked to my employer and I can complete an apportionment form to have to have the correct taxes withheld going forward, but they cannot retroactively fix for 2022. Am I able to apportion my wages on my 2022 tax return to receive a refund for the time that I worked from home?

[BrittanyS]

You will need to file a Massachusetts non-resident return claiming the taxes paid.  Then you will file your New Hampshire return and claim a credit for taxes paid to another state.  This will give you credit for the taxes paid to Massachusetts.  To complete in TurboTax, make sure you start your non-resident return first.  The credit for taxes paid to another state will be included when you complete the New Hampshire return.

For more information, see the link below:

Multiple State Returns

[Anonymous]

Thank you for your response Brittany!

New Hampshire does not collect income taxes. Can I still claim a credit and receive the difference from New Hampshire? I thought I could apportion my Massachusetts wages through my Massachusetts non-resident tax return to be refunded by Massachusetts.

[TomD8]

@Anonymous --

You're correct.  NH does not have a personal income tax on earned income.  You should file a non-resident MA return.  On that return you should enter all your MA withholdings, but allocate to MA only the portion of your income that you earned by (physically) working within MA.  MA will refund the excess withholding.  There is no "other state credit" in this situation.