Remote Employee

[mmblair96]

After graduating from college in in 2018, I accepted a job and stayed in Washington, DC. I was living in DC proper, payed my rent directly to my landlord, and got a DC drivers license.

In March of 2019 I unexpectedly had to move back home to Boston, MA. My company was very understanding and I was able to keep my job by transitioning to a remote position. Upon my move to Boston, I moved in with my parents and no longer pay rent. I also did not change my license from DC to MA.

About a month ago, my wallet was stolen. Upon looking at MA requirements to prove residency, I realized one of the easiest options would be to show a paystub with my MA address (again, I don't pay rent and have no utility bills). Upon going into my company's pay portal for my paystub, I saw that my address was never updated (it's now September). After notifying payroll of my address change, it was updated shortly thereafter.

Given this context, I have a few questions. First, can I just file my taxes as a DC resident (I would consider myself more of a DC resident than a MA one as I've never payed rent in MA and still have not gotten a MA license)? If I must file as both a DC and MA resident, what months am I claiming to be a DC resident and what months am I claiming a MA resident and how is that determined (i.e. would I claim MA beginning in September when my company updated my information or in March when I actually moved (but have no proof of moving))? Does getting a MA license complicate any of this?

Any advice or direction would be greatly appreciated!

[xmasbaby0]

It is not clear even what tax year you are trying to ask about.  First let's get rid of the confusion about what state your drivers license is in.  It is irrelevant.  (Well at least for your tax return.  The DMV may not think it is irrelevant for you to live in MA and not have a MA license  You had better get up to speed on the laws in MA regarding how long you have to get a MA license when you move to the state)

If you are asking about 2018's tax return--you file a 2018 federal tax return and a part year return for the state you lived and WORKED in during 2018 which seems to be DC.

Then in 2019 you relocated.  You spent several months living and working in DC.   If you lived and worked part of 2019 in DC and part of 2019 living and working in MA then you will file part year returns for DC and MA.  No matter what your employer's payroll dept did, what matters is when you began to LIVE and WORK in Massachusetts.

When you prepare those two state returns for 2019--remember to complete the non-resident (DC) return first before you prepare the MA return.

[TomD8]

The critical issue for state income tax purposes is domicile.  Your domicile is your main or "permanent" home, whether owned or rented or lived in rent-free.  A person can have only one domicile at a time.  Your state of domicile can tax all your income, regardless of where you earned it.

If you moved your home to a new state during the tax year, then you changed your domicile.  That makes you a part-year resident of each of the two states, and as @xmasbaby0 explained, you would file a part-year resident tax return in each of the two states.

You became a resident of MA (and ceased being a resident of DC) on the date you begin living in your new MA home.  Your drivers license is irrelevant with regard to determining your residency for tax purposes, and so are your employer's payroll records.