• Re: State income taxes, working from home

    From ira smilovitz@21:1/5 to NadCixelsyd on Tue Oct 11 11:57:44 2022
    On Tuesday, October 11, 2022 at 11:40:34 AM UTC-4, NadCixelsyd wrote:
    30+ years ago, I worked and lived in Massachusetts. My office-mate lived in NH, a state with no income tax. I had to pay MA tax wherever I worked. When we went on a business trip to another state (e.g. Florida), I still had to pay MA tax, but he did
    not pay MA tax on wages accrued outside of Massachusetts.

    With COVID, I believe MA tried to rescind that option as a lot of NH residents were working from home. I don't know if they were successful. What's the status of working from home when your office is physically located in another state?

    --

    There is no hard and fast answer. Each state has its own rules for determining what income is subject to taxation. Some states changed their rules during COVID (either temporarily or permanently) and others did not. For instance, NY has always maintained
    that if the official worksite is located in NY, the salary is subject to NY income tax unless the employee works outside the state at the necessity of the employer. So, telecommuting from NJ doesn't escape NY income tax. Other states limit their
    imposition of income tax to the salary earned while physically within the state.

    Ira Smilovitz, EA
    Leonia, NJ

    --
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  • From NadCixelsyd@21:1/5 to All on Tue Oct 11 11:38:31 2022
    30+ years ago, I worked and lived in Massachusetts. My office-mate lived in NH, a state with no income tax. I had to pay MA tax wherever I worked. When we went on a business trip to another state (e.g. Florida), I still had to pay MA tax, but he did
    not pay MA tax on wages accrued outside of Massachusetts.

    With COVID, I believe MA tried to rescind that option as a lot of NH residents were working from home. I don't know if they were successful. What's the status of working from home when your office is physically located in another state?

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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  • From Stuart O. Bronstein@21:1/5 to NadCixelsyd on Tue Oct 11 13:11:44 2022
    NadCixelsyd <nadcixelsyd@aol.com> wrote:

    30+ years ago, I worked and lived in Massachusetts. My
    office-mate lived in NH, a state with no income tax. I had to pay
    MA tax wherever I worked. When we went on a business trip to
    another state (e.g. Florida), I still had to pay MA tax, but he
    did not pay MA tax on wages accrued outside of Massachusetts.

    With COVID, I believe MA tried to rescind that option as a lot of
    NH residents were working from home. I don't know if they were
    successful. What's the status of working from home when your
    office is physically located in another state?

    I just had occasion to check the MA rules. The state (OK,
    commonwealth) will charge income tax on MA residents wherever they
    happen to be. The state will also tax any income of nonresidents
    that is "sourced" in MA. So if you are working in NH for a company
    that is located in MA. and they send you money from an account base
    in MA, then that state will tax that income.


    --
    Stu
    http://DownToEarthLawyer.com

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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