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ssmanchester
Level 1

Resident state CT, Work MA and reporting unemployment in CT

I am having trouble with Turbo Tax determining my non MA portion of income.  I have a single unemployment income from CT which should not be taxed in MA but it is being calculated as part of the income earned in that MA and claiming MA taxes have been withheld.  In addition, my federal return reflects this additional income over what my reproted MA income is reported as on my MA W2 and there is an notice stating my income is 10% greater on my fed return than the reproted income on my MA return.  How to I make the numbers work if I'm not allowed to apportion the income for MA as a non resident?

3 Replies
MaryK1101
Employee Tax Expert

Resident state CT, Work MA and reporting unemployment in CT

Nonresidents are subject to Massachusetts income tax on unemployment compensation that is related to previous employment in Massachusetts so if you are receiving the unemployment and your previous employer was in Massachusetts, you cannot apportion it.

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ssmanchester
Level 1

Resident state CT, Work MA and reporting unemployment in CT

All my income is earned in CT, but $133.  The state tax forms were finally updates so now Turbo Tax is pulling numbers into the right locations, as far as total income per my two states.  The big problem is, I am showing a full tax return from MA, which is the state I work and earn income in.  And I owe CT, my resident state most of the taxes withheld my MA, plus a serveral hundred dollar underpayment pentalty.

 

I had the understanding the I would pay my work state taxes, and apply that tax paid as a credit to my residnet state?  Turbo tax is not calculatig this.  What am I doing wrong?  I should not owe underpayment penalty.  Is there someone to call about this?

 

 

MaryK1101
Employee Tax Expert

Resident state CT, Work MA and reporting unemployment in CT

I would go back to the state section and Edit the Connecticut return first, checking specifically for the residency status and the underpayment penalty (often you can qualify to have it waived).  After you go through Connecticut, review the Massachusetts return to see if the credit is applied.

@ssmanchester

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