Amending State Tax Return for Taxes Paid in Error

[trivalpear]

I recently discovered  that I accidently paid state taxes to Massachusetts for 2019 in error. 

I work for an office based in Massachusetts but live full time in Florida, I visited the MA office for a total of maybe 7-9 days. My taxes were incorrectly reported and withheld by MA as though I was living in state due to an error with HR. Without realizing that I did not need to be paying these taxes I completed my 2019 taxes. 

Is it possible to amend my 2019 taxes and change my state income to zero to have these taxes refunded?

[JotikaT2]

It depends.

Nonresidents must file a Nonresident Massachusetts return if your gross income exceeds $8,000 from Massachusetts sources.  If your gross income is below this amount, you would not need to file a return.

MA filing requirement for nonresidents

If you determine you did not need to file a tax return, you can definitely amend your 2019 state income tax return to reflect this.

Your amended return will need to be using the instructions below.  It cannot be prepared using the online software.

Steps for amending a prior year state return in TurboTax

[trivalpear]

I can't seem to find a clear answer on what is  included as massachusetts gross income. As a note my situation has nothing to do with COVID-19, I have been remotely working since the end of 2018 and am a full time resident of FL.

In the link below Gross MA income seems to include any income made while working "in" the state of MA regardless of its source and source locations (this makes sense). However, the copied section below which is explaining qualified MA gross income first seems to indicate that MA source income is included but then goes on to describe work performed "in" MA as qualified gross income. 

https://www.mass.gov/service-details/l[product key removed]chus[product key removed]e-for-nonresiden...

Gained from or connected with any trade or business, whether or not you were actively engaged in a trade or business or employment in Massachusetts in the year you received income from:

• Compensation for personal services performed in Massachusetts, regardless of where paid. This includes but is not limited to wages, salaries, tips, bonuses, commissions, fees, and other compensation related to activities carried on in Massachusetts, regardless of where the compensation is paid. In the case of compensation for personal services, report all Massachusetts source income even though you didn't receive the entire amount. For example, include employer withholdings for federal income taxes, FICA contributions, medical insurance plans, or other similar withholding deductions in Massachusetts source income.

Reading the actual definition of MA source income it seems more clear that source income is based on work performed "in" MA. 

https://www.mass.gov/regulations/830-CMR-625a1-non-resident-income-tax#:~:text=Massachusetts%20Sourc...

Massachusetts Source Income, Massachusetts gross income derived from or effectively connected with (1) any trade or business, including any employment, carried on by a non-resident in Massachusetts, whether or not the non-resident is actively engaged in a trade or business or employment in Massachusetts in the year in which the income is received; (2) the participation in any lottery or wagering transaction in Massachusetts; or (3) the ownership of any interest in real or tangible personal property located in Massachusetts.

[KathrynG3]

As you found, each state has their own approach. Massachusetts taxes "Massachusetts sourced income." Yes, they tax both nonresidents working in Massachusetts as well as their residents working in other states. Their caveat for COVID-19 is a credit for out-of-state taxes incurred for Massachusetts residents.

TurboTax will apportion your earnings during the interview as a Nonresident of Massachusetts to Florida if Form W-2 does not withhold Massachusetts tax.

If your W-2 has MA taxes withheld, then you will have to pay Massachusetts tax and cannot exclude it. The Massachusetts state tax could have been credited to your resident state return, but since Florida does not have income tax, there is no offset.

Per Learn about Massachusetts gross income for nonresidents from Mass.gov:

Included in Massachusetts gross income: Massachusetts gross income includes income from sources within Massachusetts.... and later it contradicts itself by saying in Massachusetts.