How does it effect my taxes to work in one state and live in another?

Question

Can anyone tell me how it will effect my taxes to live in one state (RI) and work in another (MA) ... I also have two depedants if that makes a difference..Please someone point me in the right direction!

Answer 1

No effect on federal return for working in one state and living in another. For Massachusetts you will file a non-resident tax return, and be taxed on income earned in MA (in this case wages). You will also file a Rhode Island resident return, and be taxed on all your income, including the wages earned in Massachusetts. You will get a credit for taxes paid to MA on the income earned in MA, but it won't be a $ for $ credit. It is the lessor of the MA tax liability or the equivalent RI tax on the same income. For example if your tax liability in MA on the wages earned was $500, and the tax in RI on the same wages was $600 your credit in RI for taxes paid to MA would be $500. If the tax liability in MA on the wages earned was $600, and the tax in RI on the same wages was $500 your credit in RI for taxes paid to MA would be $500.

Answer 2

You would file the federal return as you would normally. You would file at Rhode Island return as a resident and the Massachusetts return as a non-resident. Any taxes paid on the MA return would result in a tax credit on your RI return. Also, since I prepare mostly Michigan returns, see if these two states are considered reciprocal states, where you would file all the income on the RI return and not even bother with the MA return. Dependents are reflected on all the returns.

Answer 3

I answered your other question were you said you lived in MA and worked in RI.

The answer is the same in both cases, however you would prepare the non-resident state first to determine the amount of credit on the resident state return.

Answer 4

It has no effect on your Federal taxes at all. You will have to file a non-resident return in MA and a resident return in RI. On your MA return, you claim only income earned in MA. (Interest, capital gains, etc are not included). On the RI form, you claim a credit based on the taxes you paid in MA.

Answer 5

Generally you pay the taxes for the state you earn the income in. So in this case if you made 100% of your income in MA you would file a MA state income tax form. When it can get complicated is if you earn your income in more than one state, but even then you just have to file multiple state income tax returns.

Answer 6

in case you reside in long island, you will pay long island taxes inspite of the place you contain. What makes you think of you want a companion merely given which you're disabled? in accordance to the sources i stumbled on finding for 'IQ score variety', a hundred and forty is noticeably lots the the superb option of the dimensions. hence, given the grammatical issues on your question, I refuse to have faith you have an IQ 50+ factors above Genius

Answer 7

no

just get and a liscence for CT , for everything, then live in MA