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Relocated to Massachusetts - Resident or Non-Resident confused

  • I started a job in MA on January 1st 2021
  • MA state income tax is accounted for on my W-2 for all of 2021 income.
  • I lived in temporary hotels in January/February of that year (going back to primary home in TX every couple weekends).  My company relocated me.
  • The family completed our official move on March 1st (we sold our home and we entered an apartment lease in March until we bought a MA home in April).

 

I am confused about how to interpret TT question about my residency in my scenario.   "Did you earn income from MA employer during the time you did not live in MA?"   

 

How should I interpret my residency for Jan/Feb?    

  1. Resident (Form 1)?  Since I lived there in 'temp hotel housing' while I worked.
  2. Part-Year Resident (Form 1-NR/PY)? Since we moved and got an official address in March?
  3. Nonresident and Part-Year Resident (Form 1-NR/PY with Schedule R/NR)

 

I've entered all 3 scenarios in TT and they give be vastly different outcomes ranging from ALOT of $ back, to I have to pay ALOT of $ back, and a normal in-between.  

 

Thanks.

 

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1 Reply
MaryK4
Expert Alumni

Relocated to Massachusetts - Resident or Non-Resident confused

Based on the information you have provided, it sound like you were a Part-Year resident of Massachusetts starting March 1st.  Here is the official Massachusetts guidance for your reference: TIR 95-7: Change in the Definition of "Resident" for ... - Mass.gov.

 

The reason the amounts vary is that in general, residents pay tax on all income regardless of where you earned it and nonresidents only pay on the state source income.  In your case, your state source Massachusetts income is your wages for January to March.  As you can see, it makes a big difference.  

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