Should I file tax return for a state in which I didn't live in 2021?

[saulgoodman]

I moved from MA to WA in Oct 2020 and my employer reported some of my rewards income as MA state income and withheld MA state tax for the same. This is accurate because the bonus amount is calculated for the period from June 2020 to June 2021 and I lived in MA until Oct 2020. Do I need to file state tax as a result of this or should I not? TurboTax doesn't feel I need to file state returns after looking at the W2. @DaveF1006, @DanielV01, @AmyC. 

[Vanessa A]

Yes, you will need to file a MA return as a nonresident since you have MA sourced income.  It doesn't matter that you didn't live there, they tax all income that is derived through their state. 

[saulgoodman]

@Vanessa A

And I need to do this irrespective of how much state income is shown in the W2? My state income is around $3000 and state tax withheld is around $150. I know this is rudimentary calculation, but I found that basic exemption for single filing status is $4400 and it said somewhere that it's not necessary to file taxes if income earned from MA is less than either $8000 or basic exemption, whichever is less.

Also, how do I do this from TurboTax premier software? It shows that I don't have to file state tax.

[Vanessa A]

No, if your income from MA is only $3,000 or below the personal exemption amount of $4,400, you do not have to file the state return

[saulgoodman]

Yes, my state income (box 16 of W2) is $3001.77. Inspite of that, I just started filing non-resident state tax to see if I can get any refund (and I am getting a refund somehow, I'll have to check that).

In the capital gains and losses summary of my stocks, it's asking me to edit each non-Massachusetts item and tick the box saying Non-Massachusetts sourced. One of the stocks in that list was a free stock that I received from Robinhood when I lived in MA. I've subsequently sold that stock for a profit after I moved to WA. Would that be Non-Massachusetts sourced or not? @Vanessa A 

[Vanessa A]

Why did you receive that stock and from whom did you receive it?  If it was something from work or business in MA, then it would be MA sourced income. 

If you took a trip to CA and won stock as part of a contest while you live in MA, then no it would not be taxable to MA. 

[saulgoodman]

@Vanessa A 

I received the stock for free when I referred someone to a trading platform (Robinhood) while living in MA. I don't think that constitutes working for it (as I need to be approved formally to work given that I've been an immigrant under a non-immigrant visa).

[ErnieS0]

The sale of your stock is non-Massachusetts income because it was sold when you were a resident of Washington, and you reported the cost basis as MA income by filing a nonresident MA return and including the W-2 that includes your rewards income.