Question

NH Resident Working Remote for MA Business as Essential Employee, how to Apportion Wages?

Forum|Forum|5 years ago
May 5, 2021
1 reply
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Quick Summary of details:

I am a NH resident who worked on-site in MA prior to Covid 19
I was given the option to work remotely after March 20th
I began working from home everyday minus a few days in the office

Problem Statement:

Unfortunately Turbo tax did not alert me to TIR 20-10 and I apportioned my wages as I would have prior to this TIR, as a result I will be subjected to a field audit from the state of MA.

My Questions:

because I was essential and had the option to work remote, does this TIR apply to my situation?
Now that I am being audited and I know why, what should be my next steps?

Thank you

E

ErnieS0

Massachusetts TIR 20-5 applies to all employees who previously worked in Massachusetts but worked elsewhere in 2020 due to the pandemic, whether by choice or not.

If you previously allocated your wages prior to the pandemic, you may argue that you had a "bona fide office" at your home. Any equipment furnished by your employer would bolster your case, e.g. if your employer paid for your internet service, gave you a computer, etc.

New York follows a similar policy which was in place prior to the pandemic. You can read their guidance about what factors may help your case. These are NY rules so they have no standing in MA. However you may be able to argue a similar fact pattern. However, I believe MA will determine that all your income is taxable to MA.

See TSB-M-06(5)I.

New Hampshire did take the case to the U.S. Supreme Court so there is a chance the court would disallow the taxation of nonresidents who work in another state and you could eventually file for a refund. There is no guarantee that will happen, and if it does, a decision is probably years away.

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