Free State Project Forum

Please login or register.

Login with username, password and session length
Pages: [1] 2   Go Down

Author Topic: I have a Taxachusett's Question  (Read 8403 times)

USgulfVET

  • *
  • Offline Offline
  • Posts: 6
  • Live Free or Die Trying
I have a Taxachusett's Question
« on: April 16, 2008, 01:31:15 pm »

I was born and bread a Bean Towner. All the usual, hate the Yankee's, no need for the letter "R" etc. etc. When I left Taxachusett's back in 92' and moved to east Tennessee, it cost me $11.50 to register a car in Tennessee and that included a new tag and title as well. I remember the 3 different lines and the hundreds of dollars I would have left at the Mass Registry for the same vehicle. Before I left there many years ago there was talk that those from New Hampshire who work in Mass would have to pay state income tax with the rest of the Massholes. Did this ever come to pass and if so is it still being done today? (my 1st post)
« Last Edit: April 16, 2008, 01:33:56 pm by USGLFVET »
Logged

margomaps

  • FSP Participant
  • *****
  • Offline Offline
  • Posts: 708
  • I'm a llama!
Re: I have a Taxachusett's Question
« Reply #1 on: April 16, 2008, 03:05:25 pm »

I was born and bread a Bean Towner. All the usual, hate the Yankee's, no need for the letter "R" etc. etc. When I left Taxachusett's back in 92' and moved to east Tennessee, it cost me $11.50 to register a car in Tennessee and that included a new tag and title as well. I remember the 3 different lines and the hundreds of dollars I would have left at the Mass Registry for the same vehicle. Before I left there many years ago there was talk that those from New Hampshire who work in Mass would have to pay state income tax with the rest of the Massholes. Did this ever come to pass and if so is it still being done today? (my 1st post)

Yes.  I don't know the history, but I believe that NH residents who work in MA are required to pay MA income tax.  Pretty sure that many states operate this way.
Logged

NJLiberty

  • FSP Participant
  • ***
  • Offline Offline
  • Posts: 137
Re: I have a Taxachusett's Question
« Reply #2 on: April 16, 2008, 04:41:34 pm »

It certainly works that way down here. If you live in NJ and work in NY you pay NJ and NY. I think that extends to your spouse as well if you file jointly. I don't think it is the same with PA since the young man I work with lives in PA and only has PA state taxes taken.

George
Logged

Dreepa

  • First 1000
  • Global Moderator
  • *****
  • Offline Offline
  • Posts: 5124
Re: I have a Taxachusett's Question
« Reply #3 on: April 16, 2008, 05:46:30 pm »

Yes you do have to pay income tax to MA.
It might be a like 5.1% rather than 5.3% or something. 
I am sure one of the people commuting can fill in the details.
Logged

rossby

  • Director of Development
  • Global Moderator
  • *****
  • Offline Offline
  • Posts: 4801
Re: I have a Taxachusett's Question
« Reply #4 on: April 16, 2008, 11:24:15 pm »

Yes you do have to pay income tax to MA.
It might be a like 5.1% rather than 5.3% or something. 
I am sure one of the people commuting can fill in the details.

Teehee--feel lucky! I work in Washington DC. Where the district income tax is about 9%. So I moved to Maryland--shaving off a little less than 4% from the DC amount. Ugh, I loathe this place.
Logged

NJLiberty

  • FSP Participant
  • ***
  • Offline Offline
  • Posts: 137
Re: I have a Taxachusett's Question
« Reply #5 on: April 17, 2008, 05:22:14 am »

New Jersey's income tax varies from 1.4% to 8.97%...can't forget to bleed the wealthy...they have to pay their "fair share"  ;)

Logged

JonM

  • First 1000
  • Administrator
  • *****
  • Offline Offline
  • Posts: 1971
Re: I have a Taxachusett's Question
« Reply #6 on: April 17, 2008, 05:38:26 am »

5.3 damn percent.
Logged

freedomroad

  • Guest
Re: I have a Taxachusett's Question
« Reply #7 on: April 17, 2008, 11:41:54 am »

The income tax works like that around TN also.  Of course, TN doesn't tax wages, just like NH.  However, if you live in TN and work in AR or MS (the states near me), then you have to pay them income tax.  Likewise, if you live in AR or MS and work in TN, you have to pay income tax to the state you live in.  Also, car files vary depending on where you are in TN.  When I am it costs around $110 a year and you need a yearly inspection.
Logged

J’raxis 270145

  • First 1000
  • FSP Participant
  • *****
  • Offline Offline
  • Posts: 1955
  • DILIGE·QVOD·VIS·FAC
    • Jeremy J. Olson
Re: I have a Taxachusett's Question
« Reply #8 on: April 17, 2008, 11:58:01 am »

Yes you do have to pay income tax to MA.
It might be a like 5.1% rather than 5.3% or something. 
I am sure one of the people commuting can fill in the details.

5.3% for both (of course, you can voluntarily choose to pay their old 5.85% tax—there’s a line for “voluntary contributions” on the form, too), and if you’re out-of-state, you actually pay more because you lose some of the deductions (e.g., apartment rental).

How y’all like filling out Schedule HC this year? >:D
Logged

anon37268573

  • *****
  • Offline Offline
  • Posts: 553
  • First1000
Re: I have a Taxachusett's Question
« Reply #9 on: April 17, 2008, 12:07:17 pm »

I was born and bread a Bean Towner. All the usual, hate the Yankee's, no need for the letter "R" etc. etc. When I left Taxachusett's back in 92' and moved to east Tennessee, it cost me $11.50 to register a car in Tennessee and that included a new tag and title as well. I remember the 3 different lines and the hundreds of dollars I would have left at the Mass Registry for the same vehicle. Before I left there many years ago there was talk that those from New Hampshire who work in Mass would have to pay state income tax with the rest of the Massholes. Did this ever come to pass and if so is it still being done today? (my 1st post)

Most people don't pay it unless they work for the Government or a very large corporation.  There are some qualifications regarding the collection of the tax.  IIRC, if you work in Mass more than two days a week, then you have to pay.  If you work from home, out of state,  or telecommute from out of state then you do not have to pay.  A tax lawyer could fill you in on all the painfully complex BS variables and gotchas.

There's plenty of jobs in NH these days.  Maybe, even more than there are in Mass.   Are you looking for one, by chance?

The rate is 5.3 percent.  But, as a Non-Resident, the only thing you're required to pay on is your Massachusetts earnings.  Residents are required to pay 12% on short term capital gains(in addition to Federal (~22%-38%) Taxes) - so be glad you're not a Mass resident anymore.

There was actually a binding voter referendum many years ago that required the Mass. Gov't to cut State Income Tax to 5 percent.  It passed by a good margin.  But, since Massachusetts isn't a Democracy, or even a Representative Democracy, the tax rate was never lowered.  Massachusetts is an Anti-Plutocracy (ruled by the poor) and Corpratocracy (ruled by corporations).

There's an attempt to get Mass to do away with its income tax all together, which I have supported:

http://www.smallgovernmentact.org/

There's always hope... no matter how misplaced it might be.

Logged

JonM

  • First 1000
  • Administrator
  • *****
  • Offline Offline
  • Posts: 1971
Re: I have a Taxachusett's Question
« Reply #10 on: April 17, 2008, 12:38:30 pm »

When CLTG proposed that ballot question I told them they should do it in one fell swoop lest the legislature cut them off at the knees.  They disagreed with me thinking it wouldn't pass except as a staged drop, from 5.95 to 5.85 to 5.3 to 5.0.  The legislature cried rainy day and stopped it at 5.3%.  CLTG got them to add the pay at 5.85% for all those people who voted against lowering the rate.  Strange thing is how few people pay at that rate.  You can call the DOR and get the numbers for last year if you're truly interested, they won't have this year's until August or later.

Carla Howell is pushing another ballot question to end the income tax in two steps this time (last time was one step).  Perhaps it will pass this time.  I predict that if it does the legislature will bravely pass an income tax restoring it to 5.3 or perhaps even higher on a voice vote.  Most of those people run unopposed, in virtually every sense of that phrase.
Logged

margomaps

  • FSP Participant
  • *****
  • Offline Offline
  • Posts: 708
  • I'm a llama!
Re: I have a Taxachusett's Question
« Reply #11 on: April 17, 2008, 01:27:18 pm »

Most people don't pay it unless they work for the Government or a very large corporation.  There are some qualifications regarding the collection of the tax.  IIRC, if you work in Mass more than two days a week, then you have to pay.  If you work from home, out of state,  or telecommute from out of state then you do not have to pay.  A tax lawyer could fill you in on all the painfully complex BS variables and gotchas.

I don't get your first sentence.  Are you saying that a smaller MA company might just not withhold MA income tax on out-of-state workers?  Kind of a wink-wink, nod-nod sort of deal?

Also, I wasn't aware of the exclusion for telecommuting from out of state.  The way it works in other states I'm familiar with is the state collects income tax on any person working for a company based in that state.  Doesn't matter whether the person is working remotely in another state, so long as he's working for a company in the state levying the tax.
Logged

JonM

  • First 1000
  • Administrator
  • *****
  • Offline Offline
  • Posts: 1971
Re: I have a Taxachusett's Question
« Reply #12 on: April 17, 2008, 02:29:36 pm »

If you live in NH and telecommute for a company in MA you will not owe taxes on the days you telecommute.  If you travel into MA to do work, you owe tax on those days.  Of course your employer must apportion your W2 to indicate this.  So says the lady at the Mass DOR when I asked this.  Below are links to the directive and technical information release she cited as what to give the employer to convince them to apportion the W2.

http://www.mass.gov/?pageID=dorterminal&L=7&L0=Home&L1=Businesses&L2=Help+%26+Resources&L3=Legal+Library&L4=Technical+Information+Releases&L5=TIRs+-+By+Year(s)&L6=2003+Releases&sid=Ador&b=terminalcontent&f=dor_rul_reg_tir_tir_03_13&csid=Ador
http://www.mass.gov/?pageID=dorterminal&L=7&L0=Home&L1=Businesses&L2=Help+%26+Resources&L3=Legal+Library&L4=Directives&L5=Directives+-+By+Decade&L6=(2000-2009)+Directives&sid=Ador&b=terminalcontent&f=dor_rul_reg_dir_dir_03_12&csid=Ador

They call call the Rules and Regulations dept as well, number here under the legal section:
http://www.mass.gov/?pageID=dorterminal&L=3&L0=Home&L1=Tax+Professionals&L2=Help+%26+Resources&sid=Ador&b=terminalcontent&f=dor_help_direct&csid=Ador

Logged

Dreepa

  • First 1000
  • Global Moderator
  • *****
  • Offline Offline
  • Posts: 5124
Re: I have a Taxachusett's Question
« Reply #13 on: April 22, 2008, 09:00:23 am »



Also, I wasn't aware of the exclusion for telecommuting from out of state.  The way it works in other states I'm familiar with is the state collects income tax on any person working for a company based in that state.  Doesn't matter whether the person is working remotely in another state, so long as he's working for a company in the state levying the tax.

100% not true.
I work for a CA company and live in NH... I don't pay CA income tax.
Logged

Fishercat

  • First 1000
  • FSP Participant
  • ****
  • Offline Offline
  • Posts: 343
Re: I have a Taxachusett's Question
« Reply #14 on: April 22, 2008, 09:26:37 am »

Quote
Quote from: margomaps on April 17, 2008, 01:27:18 pm


Also, I wasn't aware of the exclusion for telecommuting from out of state.  The way it works in other states I'm familiar with is the state collects income tax on any person working for a company based in that state.  Doesn't matter whether the person is working remotely in another state, so long as he's working for a company in the state levying the tax.

Quote
Dreepa says:
100% not true.
I work for a CA company and live in NH... I don't pay CA income tax.

It depends on the state.

Some states that do have a "telecommuter tax."  These used to be limited to states where people normally commute across the border from lower income tax states.   But it seems that more and more states are seeing this as a potential source of extra revenue.   As I understand it, the most common test is:

If you are working out-of-state as a requirement of your employement (at the employer's request), you don't owe income tax.
If you are working out-of-state "at the convenience of the employee," then you do owe income tax.

The rules were originally meant to snare the guy who works a few days a week from home, and then exempts that portion of the income.   However, as states become more and more desperate to make up budget shortfalls, they are going to get more strict about the rules and more aggressive in their enforcement.  There is already a case where a state (NY) has sued and won to collect income tax from someone "telecommuting" from Tennessee.

 
Logged
Pages: [1] 2   Go Up