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Author Topic: I have a Taxachusett's Question  (Read 8407 times)


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Re: I have a Taxachusett's Question
« Reply #15 on: April 22, 2008, 11:36:00 am »

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.

Yes.  You'd be surprised to see how many people working in Mass, even who are residents, are working off the books.  I was kind of surprised when I started having so many people confide in me that they didn't pay income tax.  I then understood why they either didn't seem to mind, or voted in favor of, tax increases.

I don't think I know anyone who works in a Massachusetts bar (be they bar tender, waitress, or bouncer) and pays income tax on that work.  Liquor stores, smaller construction jobs, and pizza shops, are the same.  Much of the time it seems to be more to avoid child support,  alimony, not to reduce a pension or SS/WIC payment, or due to citizenship issues, rather than the 5.3% income tax.

The Department of Revenue doesn't go looking for people working off the books or employers paying off the books.  That's fine by me.  I'm all for smaller government.  I think the New Bedford Raid showed that there's not public support for them to do so even though they have the power to.

Aside from that there's some legal debate and uncertainty about the requirement for a company to withhold taxes, I think.  While I haven't personally experienced it, I have heard that lawyers in New Hampshire will often advise people not to pay mass taxes (depending upon
their individual circumstances, of course).  I haven't heard of anyone in New Hampshire being gone after over Mass state income tax, or
any employers for not withholding from them.

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