State Income Tax Rules Massachusetts example ?
State Income Tax Rules Massachusetts example ?
Can someone explain how state income taxes work for/against those who
live in one state but work in another?
Example one:
A person lives in Rhode Island and works in Massachusetts. Both states
have a state income tax. Which one does the worker wind up paying? Does
the worker have to file state income tax returns in both states?
Example two:
A person lives in New Hampshire and works in Massachusetts. New Hampshire
does not have a a state income tax, but Massachusetts does. Does the worker
pay Massachusetts income tax for the privilege of working in the state, and,
if so, is it at the same rate as a MA resident? Is the worker required to
file a MA state income tax return?
Example three:
A person works in New Hampshire and lives in Massachusetts New Hampshire
does not have a a state income tax, but Massachusetts does. Is the employer
required to deduct Massachusetts income tax, or is the worker responsible
for this?
- The bottom line is that your total state income tax bill is
the higher rate.
I think you pay your home state first, and then you pay your
work state the difference if that rate is higher.
No, the worker pays MA income tax because the state c