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Work & live in NH, but paid out of MA

Hello - I am a designated remote employee, as in, I am never expected to be in the office. The company is located in Boston, MA and I am in New Hampshire. I have never worked physically in MA for this company and I do not have an office or workspace available there. 

 

Am I able to get a refund of all of the MA state taxes I paid in 2022? I tried apportioning my income using TurboTax but there is a note that says "You cannot apportion MA wages as shown on Form W-2 when MA is in Box 15.". I also entered my total income in the "Total Wages earned OUTSIDE of MA" box and still nothing.  Am I out of Luck? 

 

 

 

 

Note: My employer is NOT registered in NH as an employer yet (I know this would make things a lot easier and I have asked several times). In the meantime I am hoping I can get some of the funds back. 

 

 

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2 Replies
MinhT1
Expert Alumni

Work & live in NH, but paid out of MA

As a remote employee working in New Hampshire, your wages income is considered as earned in New Hampshire. New Hampshire does not tax earned wages.

 

For tax year 2021, you should file a Non-resident MA sate tax return, allocate 0 income in MA and you should get a refund of state taxes paid.

 

For the future, you should ask your employer to stop withholding MA taxes.

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Work & live in NH, but paid out of MA

In case your employer is unaware, the MA withholding requirements specifically state: "if a nonresident employee doesn't work in Massachusetts, even if they're paid from a Massachusetts office, you don't have to withhold."

https://www.mass.gov/guides/withholding-taxes-on-wages#-withholding-requirements-

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

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