Question

Moved states from MA to TX in the middle of the year. Is my income for full year still taxable to MA if I worked for MA employer remotely after moving to TX?

Forum|Forum|3 years ago
March 15, 2023
1 reply
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I lived and worked in MA for part of 2022 and then moved to Texas while still working for the same employer remotely. The first part of the year would be considered MA income while being a resident (part year MA resident). How about after I moved to TX? Is it considered non-resident MA income or not MA income at all?

In other words, if I am not a resident of MA but work for an employer in MA, is my income still considered to be sourced from MA and liable to taxation to MA?

My W-2 has lower number in Box 16 under MA State wages compared to my Total Wages in Box 1. Does that indicate only the amount in Box 16 is taxable for MA?

CatinaT1

You will file a part-year resident return for MA. Texas has so state income tax, so there will be no TX return to file.

The income you made while working in MA is MA source income and is taxed by MA.

Once you moved to TX, even though your employer is located in MA, it becomes TX source income.

The amount in box 16 represents the amount of income that should be taxable in MA.

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J

jenil1388Author

Thank you. Turbotax is suggesting "Massachusetts nonresident and part-year resident (Form 1-NR/PY with Schedule R/NR) as recommended main form. But you are suggesting Part year resident (Form 1 -NR/PY) as the correct form, right?

How do I address the "Non-MA portion of amount paid to SS (FICA), railroad, medicare, US or MA retirement"? Do I calculate those wages from Boxes 3, 4, 5, 6 in W-2 and multiply by part of year not lived in MA? e.g. Amount x 0.5 to account for half year residency?

I appreciate your response!

CatinaT1

MA only has two primary tax forms. A Form 1 Resident return and a Form 1 Nonresident or Part-Year Resident Form. Schedule R/NR is attached to all MA returns.

The amount in box 3-6 are federal numbers. You will enter your W2 just as it is. Based on what you have in box 16, TurboTax will know how much MA income is.

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