Remote Mass/Ohio

[stacey64]

Hi, thanks in advance for any help.

I currently live in Massachusetts and work for a company in Mass.  In December 2020, I am moving to Ohio to help with my parents' care but will be working remotely for the same company in Mass.

- How should I setup my withholding?  Withhold for Mass and Ohio, or just one of them?  I am the only employee working remotely out of state, so HR isn't sure.

- What state returns will I file for 2020?

Thanks again. 

[Hal_Al · Accepted solution]

Withhold for Ohio only.  Even if MA taxes the income (which they probably won't), they will give you a credit for the tax paid to OH.

Your separate question is, how do you file for 2020.  You file as a part year resident of both states, paying tax on income prior to the move to MA and after the move to OH. This assumes the move is permanent and you do not maintain a domicile in MA. 

For others reading this question, the answer is different if the employer's location is in  New York, Pennsylvania, Nebraska, Delaware or New Jersey. For guidance see: http://www.journalofaccountancy.com/issues/2009/jun/20091371.html

[stacey64]

Thank you.

Yes, the move is permanent and we have sold our primary and only residence in MA. 

So, going forward, 2021 and beyond, my state return will be OH only, right?  No need to file anything for MA even though working for MA company but living in OH?

[Hal_Al · Accepted solution]

Correct; 2021 and beyond, your state return will be OH only,