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State income tax withheld in the wrong state last year

Issue with my 2019 W2 income, my state income tax was distributed to Massachusetts yet my primary residence address is in Connecticut (residence, where my car is registered, license). We have offices in both states so I do some work in Boston.  Due to the fact that on the top of my paystub had my Connecticut address, I overlooked that my whole entire year I was paying to Massachusetts (former residence). 

 

So according to my gathering, I need to file a non-resident tax return for Massachusetts, does that mean Massachusetts will expect any of my income? Will they just refund what I already withheld and transfer it to Connecticut. 

 

I also have a rental property in Florida, will this also require a non-resident tax return?

 

Thanks!!!

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2 Replies
AmyC
Employee Tax Expert

State income tax withheld in the wrong state last year

Yes, you will file a MA non-resident. FL does not have state taxes for individuals.

 

The program is picky. You must prepare the MA form first.

 

For the MA, you will have to apportion part of your wages since you do work there occasionally. Please note Line 13 of the non-resident form asks for your division of time.Once you have finished the MA and the tax liability is calculated, you can move to your resident state.

 

Prepare the CT return last. It will use the income and tax liability on the MA return to give you a credit against the same income on your CT return. The Supreme Court announced in 2015 that states would not double tax the same income.  However, each state has different tax rates and the credit will be the lower of the liabilities.

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State income tax withheld in the wrong state last year

If you are a Connecticut resident, ALL your income is taxable by CT, including your earnings  from MA and your net rental income from Florida.

The income you earned from working in MA is also taxable by MA.

Florida does not have a personal income tax.

So you must file two state tax returns: a non-resident return for MA and your regular home state tax return for CT.

In the personal info section of TurboTax, enter your State of Residence as CT, and indicate that you had other state income from MA.  Enter your W-2 information exactly as is.

Be sure to complete your non-resident MA return before you do your home state CT return, so that CT gives you a credit for taxes paid to MA.

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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