Living and working in PA - Tax withheld in MA

Forum|Forum|2 years ago
February 7, 2024
2 replies
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Hello,

I am a PA resident. I work remotely for an engineering outfit in MA. 100% of the work is performed in PA. My company withholds tax for MA. I don't set foot in MA, except for the annual Christmas Party. How can I get credit for taxes withheld to MA when filing in PA? Do I have to file as a non-resident in MA, even though I don't live there and none of the work is performed there?

Best answer by TomD8

MA does not tax non-residents who work remotely from a location outside MA.

But since MA taxes were incorrectly withheld from your pay, you’ll have to file a non-resident MA tax return, to which you allocate zero MA income, in order to receive a full refund.

Your income is of course 100% taxable by your home state of PA.

TomK2023

Yes, you will need to file a nonresident tax return for Massachusetts and a resident return for Pennsylvania.

If you're a nonresident with an annual Massachusetts gross income of more than either $8,000 or the prorated personal exemption, whichever is less, you must file a Massachusetts tax return.

You are an individual nonresident if you are neither a full-year or part-year resident.

Nonresidents use Form 1-NR/PY: Massachusetts Nonresident/Part-Year Tax Return.

Commonwealth of Massachusetts - Who Must File a Massachusetts Personal Income Tax Return

To ensure accurate calculations, always complete the nonresident return first if filing in multiple states because your resident state might give you a credit for any taxes paid in that situation.

Please see TurboTax FAQ: How do I file a nonresident state return?

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TomD8Answer

Employee

MA does not tax non-residents who work remotely from a location outside MA.

But since MA taxes were incorrectly withheld from your pay, you’ll have to file a non-resident MA tax return, to which you allocate zero MA income, in order to receive a full refund.

Your income is of course 100% taxable by your home state of PA.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.