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Level 1
posted Mar 3, 2020 7:16:25 AM

Part year resident and tax credit

I am filing a part year resident in AZ and MA.  I moved to MA half way through the year but the company I work for is in AZ.  I work remotely from MA.  The AZ company deducted all of state taxes for AZ for the whole year.  I did not pay any MA taxes.  Turbotax software, I did the AZ tax first and am getting a refund for 500 dollars.  Now when I do the MA taxes and take the credit it finishes with me only paying MA 200.00.  This seems incorrect since my mass liability is 700.  I did not pay any massachusetts tax.  Should I not be taking the credit? Does the Arizona refund go to the state automatically?  It is not clear in the software.

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1 Best answer
Expert Alumni
Mar 3, 2020 7:46:37 AM

You should not claim the credit. 

The income earned while working remotely in MA for a company located in AZ should be taxed in MA. 

Make sure your income is allocated correctly between the 2 states. You should be taxed in AZ for income earned from the beginning of the year until the day you moved and the rest of your income will be taxed in MA.

AZ refund goes to you and you can choose how to receive it. 

2 Replies
Expert Alumni
Mar 3, 2020 7:46:37 AM

You should not claim the credit. 

The income earned while working remotely in MA for a company located in AZ should be taxed in MA. 

Make sure your income is allocated correctly between the 2 states. You should be taxed in AZ for income earned from the beginning of the year until the day you moved and the rest of your income will be taxed in MA.

AZ refund goes to you and you can choose how to receive it. 

Level 1
Mar 4, 2020 6:54:24 AM

Thank you

Thats what I thought.