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MA State Tax Return for Non-Resident as Consultant

Forum|Forum|2 years ago
January 25, 2024
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My consulting firm not based in MA sent me to client site in MA for 8 days, however, the client didn't pay for my time/expenses and nor were they billed for them. My work was an "investment" from my firm and my firm paid for me to be there. Since my income during that time was not sourced from MA do I still need to file the non-resident state tax return?

Best answer by AnnetteB6

Even though your income from the time you were in MA was not paid from a source in MA, you did perform the work in MA. That is all it takes for that work to be considered MA source income. Therefore, whether or not you are required to file a non-resident tax return for MA will depend on the total amount of income you received for the 8 days of work.

There are certain income thresholds that must be met in order for you to be required to file the non-resident return. TurboTax should be able to work through this with you when you indicate that you did have income from MA.

The main income threshold to consider is whether your 'MA source income was greater than $8000 OR your MA source income was more than your personal exemption amount multiplied by the ratio of your MA income to your total income.'

To learn more, take a look at the instruction booklet for the 2023 Massachusetts Nonresident or Part-Year Resident Income Tax. Page 3 outlines who is required to file a return and Page 5 gives you a definition of What Is Massachusetts Source Income for Nonresidents?

A

AnnetteB6Answer

Even though your income from the time you were in MA was not paid from a source in MA, you did perform the work in MA. That is all it takes for that work to be considered MA source income. Therefore, whether or not you are required to file a non-resident tax return for MA will depend on the total amount of income you received for the 8 days of work.

There are certain income thresholds that must be met in order for you to be required to file the non-resident return. TurboTax should be able to work through this with you when you indicate that you did have income from MA.

The main income threshold to consider is whether your 'MA source income was greater than $8000 OR your MA source income was more than your personal exemption amount multiplied by the ratio of your MA income to your total income.'

To learn more, take a look at the instruction booklet for the 2023 Massachusetts Nonresident or Part-Year Resident Income Tax. Page 3 outlines who is required to file a return and Page 5 gives you a definition of What Is Massachusetts Source Income for Nonresidents?

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