Multiple states

[NanoJohn]

Company resides in Massachusetts.  I live and worked in Rhode Island but the company pays  Massachusetts state tax.  Do I file in Massachusetts or Rhode Island?

[AmyC · Accepted solution]

Both, in a special order. MA taxes MA sourced income. Since you are working for a MA based employer, you will  need to file a MA return.

1. Prepare your non-resident MA return first. This creates your tax liability.
2. THEN prepare your resident state return of RI and it will generate a credit for your income already being taxed. The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state.