Must I pay tax in New Hampshire on distributions from my Massachusetts S corporation?

I am a resident of New Hampshire and the sole owner of an S corporation incorporated in Massachusetts. I am paid a salary and file a Massachusetts nonresident tax return on which I also report and pay tax on the profit earned by the corporation, which of course I also do on my federal return. I regularly take cash distributions from the previously-taxed retained earnings. Am I obligated to pay tax again in New Hampshire for those distributions, or are they perhaps non-taxable in New Hampshire under reason code 10?

Answer

There are a few states that do not recognize the federal S election with New Hampshire as one of those. 

S corporation distributions to resident owners are reported as dividends and subject to interest and dividend tax.

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