under the Personal However, it is not the only expense to be concerned with. It’s been said that time is money. or itemized deductions. Also, property taxes are sky-high in NH, which I'm sure you know already. While it’s likely NH residents working in MA will need to pay some extra tax this year, as of this writing, it won’t persist into 2021. example, if you have children and would be able to pick them up from school if you lived closer, but that is not an option commuting further. Lol I live and work in … Please Help. Even if you’re a high earner in MA, paying thousands of dollars a year in MA taxes, for you and your spouse the amount you’re able to deduct is capped at $10K. Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type. The tax only applies if you earn more than $2,400 of interest and dividends if single, $4,800 if filing jointly. But if you work in a state that does have an income tax you have to file a nonresident return in that state. If you've lived in NH all your life, you may not have known about this tax because it does not apply to everyone. should know how long commute will be and how many miles you’ll be driving. He had to pay MA income tax on his NH income. But considering possible additional exp. New Jersey Division of Taxation. You’ll be paying unnecessary taxes if you do! Before the coronavirus pandemic hit, about 15% of New Hampshire commuters were driving to Massachusetts for work. When considering where to live, you should know how long commute will be and how many miles you’ll be driving. In, but dropped to a flat 5% starting January 1. income is going to be taxable (wages, interest, dividends, etc.). As many in New England know, Massachusetts has an income tax. Since you will not Gusto. However, some income, like Social Security or certain pensions won’t be. Where you work (and where you intend to continue to work) is the most important factor. You won't pay taxes on the same money twice, even if you don't live or work in any of the states with reciprocal agreements. While almost no one enjoys paying taxes, under the new tax laws, paying state taxes are even less advantageous. If you would like help reviewing your tax situation and your overall financial plan we'd love to get in touch. Does turbotax take that into account? nother important consideration is that if your spouse does not work in the state, none of their income is taxable to MA. Pennsylvania Department of Revenue. Does this count towards "not working in MA" for income tax purposes or is it ONLY working from home? I am currently getting a bunch deducted from my paychecks for Mass state tax. to " Did you make money in any other states?" During a Thursday public hearing via video, New Hampshire officials voiced disapproval for a Massachusetts tax rule that forces out-of-state residents to pay Massachusetts income taxes … Personal Income Tax August 2, 1984 ("Company") is a general contractor which operates in Massachusetts and New Hampshire. New Hampshire is known for not having an income tax. Living in NH and working in MA can be tricky but it doesn't have to be. Let me know if you have any question. In turn you may hire landscapers to take care of your yard instead of doing it yourself. However, this has become much less common for two reasons: First, the standard deduction doubled. A long commute can end up costing you more than anticipated. With an increased standard deduction, this means you would need more “other deductions” to surpass this amount. They can become even more tricky when someone lives in one state but works in another. New Hampshire is demanding that Massachusetts stop imposing a state income tax on New Hampshire residents working remotely from their homes for Massachusetts companies. implemented by Massachusetts, New Hampshire plans, As of this writing the review has not been completed, and whether this, order will stand for NH residents working in MA is currently, this will be handled, we are recommending that workers who live in NH and work in MA. New Hampshire is known for not having an income tax. If you live in NH and work in MA, attributing additional income to MA can have a big tax impact. SInce you are a resident of MA, you are required to report your income from all sources and pay tax on it. Believe it or not, New Hampshire does have an interest and dividends tax. MA taxes my income (NH does not tax income), so do I need to fill out a state form for NH, or can I just fill one out for MA. 2021 Milestone Financial Planning © - Do not copy. - What to Know About NH's Dividend and Interest Tax, My Property Taxes Are What!? Freedom from income taxes is a New Hampshire delight: The Granite State is one of nine that don’t tax ordinary income. If you are working entirely remotely in New Hampshire, and have been for some time, it is worth asking your employer to reclassify you as an NH employee. Joined: Sep 11, 2008 Oddometer: 58 Location: Southern New Hampshire. The MA emergency order is scheduled to expire on December 31st of this year. Can I change that after I've already selected YES? - New Changes for MA Employers. I believe NH will withhold the MA tax from your paycheck. 1 https://www.mass.gov/guides/personal-income-tax-for-residents#:~:text=Introduction,-5.05%25%20personal%20income&text=For%20tax%20year%202019%2C%20Massachusetts,gains%20are%20taxed%20at%2012%25. The tax rate is 5.3% for MA. However, it is not the only expense to be concerned with, and you should review other expenses that come with where you decide to live. more tax revenue from those who live in NH but work in MA. You need to file a MA non-resident tax return, and be taxed on your wages that you earn in MA. Two more states: New Hampshire and Tennessee tax only dividend and interest income. Property taxes in MA may be quite a bit lower so crunch ALL of the numbers before you consider a move. First step in making this tax season as painless as possible may be to... The same holds true when the situation is reversed owe MA state taxes are even less advantageous you paid. 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