MA - taxing s Corp income

[stihl-mac]

Hi,

I was in MA for a couple of months last year and earned < $1,000. Then moved to CO. I also have some income from a S Corp that was outlined in a K-1. I entered the K-1 information for the Federal taxes. Turbotax then suggested that I file a non-resident MA return. I noticed that it taxed me on all of the S corp income. Is this how MA does it or should it be prorated to the months that I was in MA? Or maybe I should be filing a different form in MA? Would love any help in trying to figure this out.

thank you!

[Anonymous_]

You might have to make a manual adjustment.

I will page @ScruffyCurmudgeon 

[ScruffyCurmudgeon]

@stihl-mac @Anonymous_ 
As the 2022 Massachusetts product is not yet available, I will run a test of a hypothetical tomorrow and provide that to you.  May I know the specific TurboTax product you are using (Desktop presumably and not online? - and probably at least Premier?)
To verify:  You received a W-2 with reported Federal & Massachusetts "Wages" for the specific job you cite and during which you were residing in Massachusetts -, and you may have had another W-w or other reported income (whether 1099-misc or w-2, it does not matter) which was paid by a non-Massachusetts entity when you were not residing in Massachusetts.

[ScruffyCurmudgeon]

Create a reply by entering the following on the first line
@ScruffyCurmudgeon 

See attached hypothetical PDF where FL resident and income for 5/15/2021 -12/31/21 
and Massachusetts income from 01/01/21 to 5/15/2021
Note that the income in Mass was under $1,000 and if paid bi-weekly would likely not have triggered any Federal or State withholding
The MA tax looks at total income assumed to have occurred in the residency period.

For this example that is predominately the interest, dividends and capital gain dividend.

So if in fact those elements of income did not occur or did not occur proportionally, then the MA tax may be adjusted accordingly.

[ScruffyCurmudgeon]

@Anonymous_ RE:  

https://ttlc.intuit.com/community/taxes/discussion/re-ma-taxing-s-corp-income/01/2781186#M1007879
See initial response - obviously given total lack of information as to specifics of her income and deductions . . .

and we should suggest that if possible she alter her ID - not good to self-identify
@ErickaW  you may want to reach out to the TP poster about her ID

[ErickaW]

Thanks for the head's up - I will reach out to her. 

[stihl-mac]

@ScruffyCurmudgeon 

Thank you so much for your responses and information. It has been very helpful. This is a situation for 2021.

Your summary in the 'To verify' section is true. 

And based on reading I have done on Mass.gov, I don't think I need to file in MA.

The income on the K-1 was not distributed and even if it was, the entity (producing the K-1)  has nothing to do with MA. Based on this found under the section about what to include in MA Gross Income "

• Distributive share income from a partnership or S corporation. Distributions based on an ownership interest in an entity doing business in Massachusetts, whether in the form of dividends or any other category of income." I don't think it needs to be included in MA Gross Income and therefore I am under the $8,000 limit.

Thanks again. And I have also noted the comment about the posting name. Much appreciated.