What happens if you live in NH and work in Massachusetts?

If you live in Massachusetts and have dividend income, it’ll be taxable to MA instead of NH, even if you work in New Hampshire. If you’ve lived in NH all your life, you may not have known about this tax because it does not apply to everyone. Wages from work are still not taxable, just the dividends and interest.

Do you pay tax where you live or work?

If you earn income in one state while living in another, you should expect to file a tax return in your resident state (where you live). You may also be required to file a state tax return where your employer is located or any state where you have a source of income.

How do I file taxes if I work in one state and live in another?

If you and your spouse worked in different states, you can still file your returns jointly. Report only your income in the state where you worked and report only your spouse’s income in the state where they worked. On your resident return for the state you live, you will list both of your incomes.

Do I pay mass income tax if I work in NH?

There is no state income tax in New Hampshire. The move hasn’t been a popular one in New Hampshire, where about 15 percent of workers commute to Massachusetts for work.

Is it more expensive to live in MA or NH?

Cost of living. New Hampshire is certainly more affordable compared to places like Eastern Massachusetts or Southern New York, but compared to most other places in the country you will be paying more money for housing, food, gas, and other consumer goods.

What happens if you work in Massachusetts and live in NH?

Do you have to file Ma state taxes if you work in NH?

I live in NH but work in MA. Do I still file MA state taxes and possibly get a refund? Yes. You will need to file a Massachusetts nonresident return for any income you earned working in Massachusetts. You will receive a refund if the amount they withheld from your check is greater than the amount of actual tax you are responsible to pay to MA.

Do you get a Massachusetts tax credit if you live in NH?

If you were living in a state that also has a state income tax, that state would give you a credit on their tax return for the amount of tax liability you have in Massachusetts. But, since you live in NH, a state without its own state income tax, they will not provide you with such a credit.

When to withhold taxes from a non-resident employee in Massachusetts?

For purposes of Massachusetts income tax withholding, the Company should withhold taxes only upon that portion of each non-resident employee’s weekly wages which is attributable to work performed in Massachusetts.