Live and remotely working in MA, company in CT. Tax withheld for CT only

[kgn02]

Hi, I have a potentially basic tax question.

I work for a company in CT. I moved to MA and stayed for the entire year of 2022 since then, and work completely remotely within MA (from my apartment, at my home), i.e., MA is where I am, physically.

My employer withheld CT state taxes, but no state taxes withheld for MA. Suppose tax withheld is $3000 for CT and $0 for MA. Considering the above situation and assuming negligible details (that is my sole source of income), is it correct to expect CT to refund ~$3000 (almost the entire amount) and I should pay tax to MA (around the same ballpark number of ~$3000)?

I have read about "convenience of the employer", "tax reciprocity", "tax credits" etc. but some of these information seems to be specific for the pandemic, not the tax year 2022. And I would like some advice specific for my situation, nonresident CT and resident MA.

Thank you.

[Vanessa A · Accepted solution]

The Convenience of the Employer rule does not apply to you since you work in MA. Connecticut only applies this rule to nonresident employees in Arkansas, Delaware, Nebraska, New York, and Pennsylvania. 

So you are correct.  Since you are a resident of MA, you will fill out your CT return first and get a full refund as you have $0 income taxable to CT.  You will then need to pay MA taxes on your full wages as a resident of MA.  

You should also change with your employer, the state they withhold taxes for so you can avoid this situation next year and avoid any underpayment penalties for not having any taxes withheld in MA. 

[kgn02]

Thank you very much! Marked as accepted answer.