The regulation, which is in effect until Dec. 31 or 90 days after the state of emergency in Massachusetts is lifted, raised strong objects in New Hampshire, one of nine states without an income tax. What would be frustrating is, when will they change it back,” said Fisher. I don’t think any party is going to stomach for a broad-based income tax,” said Horrigan. 123,000 New Hampshire residents working in Massachusetts, despite living in a state with no income tax, have thus been subject to the 5 percent Massachusetts income tax for work they perform while physically in Massachusetts.        Charts “This rule change by Massachusetts extends an outrageous cash grab targeting Granite Staters who are doing their part to stay home and stay safe during a pandemic,” Pappas said in a statement. As a nonresident, you need to file income tax returns with Massachusetts if your Massachusetts gross income (from sources within Massachusetts) is greater than either $8,000 or the prorated personal exemption you're entitled to, whichever is less.. Nonresidents file Form 1-NR/PY, Massachusetts Nonresident or Part-Year Resident Income Tax Return. Chris Sununu announced Wednesday. Here's why. The department said it put the regulations in place to ensure clarity with tax collections for Massachusetts and other states and minimize sudden disruption for employers and employees during the COVID-19 pandemic. Under normal circumstances, only income earned in Massachusetts would be taxed. This guide has general information about Personal Income tax for nonresidents. The Massachusetts regulation will remain in effect until Dec. 31 or 90 days after the coronavirus state of emergency in Massachusetts is lifted. Because of an emergency order passed on March 10, employees working from home for a Massachusetts company are subject to the 5% income tax, regardless of where they work. I lose that benefit,” said Fisher. The rule is set to expire at the end of the end of 2020, with no plans to extend it further. Freedom from income taxes is among New Hampshire's delights: The Granite State is one of just nine that don't tax ordinary income. Traditionally, income is taxed based on where the employee works. Enable breaking news notifications straight to your internet browser. New Hampshire has no income tax. “I am no longer based in Burlington, I am based out of San Francisco as a remote employee in New Hampshire,” said Turcotte. Before the pandemic, New Hampshire residents working for Massachusetts-based companies paid income taxes based on the number of days they worked in that state. The whole budget has a huge hole blown in it like ours,” said Horrigan. Andrea Campbell grew up blocks away from 'Mass. This rule only serves as a continuation of previous established precedent for out-of-state workers. In this file photo, a sign urged out-of-state motorists traveling on Interstate 93 North from the Massachusetts border into New Hampshire to quarantine for 14 days in Salem, N.H., on April 21, 2020. Generally, income tax is imposed on the state of residence, but many states also assert the power to tax non-residents who perform work within their state.        Daily #s      Turcotte currently works for Salesforce, a company based out of Burlington, Massachusetts. Earlier this month, the Commonwealth Office of Administration and Finance released a revised FY21 tax revenue estimate which has seen a decrease to $27.592 billion, an 11% decrease from consensus revenue estimate of $31.159 billion … Though his company can change where he is based, companies have begun to become creative with the new influx of remote workers. Many are forced to choose between higher taxes or pay cuts based on their physical location. Chris Sununu said the state would file suit in the U.S. Supreme Court on Monday to challenge a final ruling of an emergency regulation issued Friday by the Massachusetts Department of Revenue. Please join elsewhere on Boston.com, Suspension of weekend service begins on these 7 commuter rail lines, Why a Boston Medical Center doctor got the COVID-19 vaccine — even after struggling with the decision, Tonight's Mega Millions jackpot has grown to $1 billion, Woman killed in Dorchester shooting, police say. There is a $4,400 personal exemption for taxpayers who are single or married filing separately; those who are married filing jointly receive an $8,800 exemption. “We are going to fight this unconstitutional attempt to tax our citizens every step of the way, and we are going to win,” he said. New Hampshire is one of nine states without an income tax – a feature that Sununu says is part of the "New Hampshire Advantage" and one that is under "direct attack" from Massachusetts' regulation. The state Department of Justice is reviewing whether other states are improperly collecting income tax from New Hampshire residents working from home, Gov. A lot of Republicans in New Hampshire like to say taxation is theft, which it isn’t,” said Horrigan. The Office of Charlie Baker and the Office of Chris Sununu, as well as the New Hampshire Department of Labor and Massachusetts Department of Revenue, have not responded for comment. The Boston Herald reported in December that Massachusetts instituted the policy during the early days of the COVID-19 crisis to maintain revenues the state would normally garner from out-of … CONCORD, N.H. (AP) — The governor of New Hampshire on Friday promised a legal challenge to a decision by neighboring Massachusetts to continue taxing New Hampshire residents who normally work in Massachusetts but who have been working from home during the coronavirus pandemic. If you claim MA as your state of residence in TurboTax, all state income from all sources (including NH) will be included on your MA resident state income tax return. A couple thousand a year, it wasn’t enough to be bummed out about. Connecticut has filed an amicus brief in support of New Hampshire, as has Arkansas, Hawaii, Indiana, Iowa, Kentucky, Louisiana, Missouri, Nebraska, New Jersey, Ohio, … UNH student Heath Howard runs for State Rep. Halloween Extravaganza is celebrated for it’s 11th year, #FIGHT4HER Community members observe 47 minutes of silence in honor of International Women’s Day. “Because there is no New Hampshire income tax or sales tax, you make up for that with the high property tax. But the lawsuit got me optimistic,” said Fisher. Because Burlington is Boston Metro, they have a higher pay rate. Gov. A full-year resident is someone who has a home in Massachusetts for the entire tax year or maintains a home in Massachusetts. Here's what that means. Over 80,000 employees crossed into Massachusetts to work every single day, or 15% of all commuters, according to Gov. Even with the legal battle between the states, approximately 492 people from Durham and Madbury commute to Massachusetts for work in some capacity according to Horrigan. Fauci, unchained: The leading U.S. infectious-disease expert exults in being able to speak frankly, Prominent lawyers want Giuliani’s law license suspended over his work for Trump, New Bedford couple indicted for pandemic unemployment benefits fraud, Site Boston is set to have an 'acting mayor' for months. In August, the New Hampshire Attorney General Gordon MacDonald, in a letter to the Massachusetts Department of Revenue, called the temporary tax measure unclear, overboard and said it raised constitutional concerns. Deaths        Map Another resident of New Hampshire, Eric Turcotte, expressed his frustration with the rule change to The New Hampshire. Of course, I was frustrated. Coronavirus With how New Hampshire collects its taxes, Fisher feels he is disproportionately impacted by the taxes of both states. (The Center Square) – New Hampshire is taking aim at a Massachusetts policy to tax Granite State residents' income who work remotely for Bay State-based companies. Massachusetts sought to simplify its accounting measures for businesses, impacting all out-of-state employees, including Granite Staters. They’ve been hit hard by the pandemic. Nothing contained herein supersedes, alters or otherwise changes any provision of the Massachusetts General Laws, Massachusetts Department of Revenue Regulations, … Income earned inside Massachusetts by an out-of-state resident is subject to Massachusetts taxes. “It wasn’t the reason we moved to NH. “When I did my taxes, instead of paying $10,000, I ended up paying only half or two-thirds of it. “The Commonwealth has implemented temporary regulations that are similar to those adopted by other New England states,” Massachusetts Department of Revenue spokeswoman Naysa Woomer said in an email statement. Turcotte is one such employee who is impacted by this. By going full-time in New Hampshire, by corporate, I get a 10% pay cut,” said Turcotte. The legality of the order remains in question. For many employees, remote work has become a new reality. Here’s what’s in Biden’s executive orders aimed at curbing the pandemic, McConnell seeks impeachment trial delay as Senate dysfunction reigns, The unsolved mystery of the Wayland baked potatoes, Testing wristbands, masks signs of a new boss at White House. Only about 100 to 150 cases are tackled by Supreme Court each year. Freedom from income taxes is a New Hampshire delight: The Granite State is one of nine that don’t tax ordinary income. Sununu called the ruling a “direct attack” on New Hampshire and an attempt to “pick the pockets” of its citizens. Massachusetts has a 5.05% income tax. They are only taxed for the days they previously worked in Massachusetts. Rep. Timothy Horrigan (D-Durham), was disappointed with the order, concerned with the impact it would have on his constituents. Non-residents are taxed on items of gross income from sources within the Commonwealth, including income derived from or connected with any trade or business, including any employment, in … Massachusetts has a 5.05% income tax.        Testing locations Boston drops plans for Melnea Cass Boulevard redesign after backlash over tree removal, 'We are in the darkest moment of this pandemic—it’s not going to go away in the short term', A 'senseless act of racial violence': Friends, community remember Boston man killed in alleged road rage incident, Marty Walsh receives first dose of COVID-19 vaccine, Barbara Erickson, CEO of Trustees of Reservations since 2012, dies from rare form of cancer, Advocates push for Marjorie Taylor Greene's resignation over report that she spread falsehoods about school shootings, Woman injured falling into pit at Chelsea auto repair shop, Watch: Boston Latin School films dance tribute to Kamala Harris, 4-year-old boy dies after crash on Cape Cod, Almost 2,000 COVID-19 vaccine doses spoiled at the Jamaica Plain VA hospital, Fauci unleashed: Doc takes 'liberating' turn at center stage, Mass. The state of Massachusetts implemented a temporary rule allowing businesses to continue to withhold income taxes from out-of-state employees who work remotely due to the coronavirus (COVID-19). “The actions taken by the State of Massachusetts to dip their hand into Granite State pockets because they cannot balance their own budget is disgraceful,” Senate Republican Leader Chuck Morse said in a statement. Democratic U.S. Rep. Chris Pappas also attacked the ruling as unfair. Massachusetts is asking the U.S. Supreme Court to decline a petition filed by the state of New Hampshire over cross-border income tax collections during the pandemic. “The Commonwealth has implemented temporary regulations that are similar to those adopted by other New England states,” Massachusetts Department of Revenue spokeswoman Naysa Woomer said in an email statement. Help. “It’s kind of annoying, but it won’t change our mindset. Though the lack of income tax was not a factor in his move to New Hampshire, he believed it to be a benefit. Massachusetts has a 5.05% income tax. For Massachusetts personal income tax purposes, Massachusetts residents are generally taxed on all of their income from whatever sources derived. Photo courtesy of Jimmy Emerson, DMV/Flick Creative Commons. Still, many Granite Staters are concerned with the legality of the order, and the precedent it may set for the future. During a normal tax season, Turcotte only pays a fraction of his taxable income to Massachusetts. Nearly 100,000 New Hampshire residents normally commute to Massachusetts for work. Here's her plan to deal with it. “I don’t think we’re going to pass a broad-based income tax. Even so, Horrigan believes Massachusetts is not entirely to blame for the situation.        Boston Helps. It remains to be seen whether the case will be heard by the Supreme Court. For example, if a New Hampshire resident worked 50 days with 25 in Massachusetts and 25 in New Hampshire, only half of their income would be taxed. “There is a cost of living differential. reports 541 new COVID-19 cases among students, 397 among school staff across the state, Here are the highest-paid Massachusetts state employees, Lawrence police break up 100-person party at 'illegal nightclub', Introducing Obaggo: How one Melrose man hopes to inspire change in plastic bag recycling. States like Massachusetts have had to get creative with how they collect taxes from out of state workers. It’s costing me $5000 out of pocket,” said Turcotte. Even with the current rule, Fisher remains optimistic that it won’t extend beyond 2020, as is the current law. Many Granite Staters believe since they now work at home in New Hampshire, they are no longer subject to the Massachusetts income tax. “I certainly want them [my constituents] to have more money. He was forced to telecommute due to COVID-19 and purchased a house in Madbury. A tropical bird has been spotted in Maine twice this winter. Jeff Jacoby, Freedom from income taxes is among New Hampshire’s delights: The Granite State is one of just nine that don’t tax ordinary income.Of course, that benefit doesn’t apply to New Hampshire residents who commute to work across the Massachusetts border. Because of the financial burden of the new tax rule, Turcotte’s company has “relocated” him to another state, where no such tax rule exists. Posted by Benjamin Domaingue | Oct 29, 2020 | News | 0 |. New Hampshire is challenging a Massachusetts measure that continues to tax nonresidents that formerly commuted to work in the Bay State, but now work from home because of the pandemic. New Hampshire residents who previously worked in-person in Massachusetts are continuing to have their taxes withheld by their employers. “I applaud Governor Sununu for quickly announcing a plan to file lawsuit against this new rule and make it clear that New Hampshire will never accept an income tax in this state.”. Massachusetts residents who earn a gross income of at least $8,000 need to file a tax return. The full-year residents must file Form 1 – Massachusetts Resident Income Tax Return. Yes. Even still, the rule change only serves to continue tax revenue collection as normal for Massachusetts. With companies forgoing renting office space, many have begun to distribute cost-of-living differentials based on where a remote employee is based. I couldn’t get on board [with the initial outrage] as the tone was accusatory. This discussion has ended. New Hampshire Gov. Horrigan believes there remains no clear solution where both sides can compromise without a broad-based income tax. New Hampshire has no income tax. Chris Sununu of New Hampshire recently tweeted that the State of New Hampshire will be presenting a case to the Supreme Court on the matter. Since you will not have an NH state income tax filing, just check that you selected "no" to " Did you make money in any other states?" New Hampshire residents who previously worked in-person in Massachusetts are continuing to have their taxes withheld by their employers. The Massachusetts regulation will remain in effect until Dec. 31 or 90 days after the coronavirus state of emergency in Massachusetts is lifted. Concord, NH - Today, Governor Chris Sununu issued the following statement after the Massachusetts Department of Revenue published and approved a final rule that imposes Massachusetts' income tax on New Hampshire residents who are working from home for Massachusetts companies, despite strong opposition from New Hampshire residents: Massachusetts Taxes Massachusetts charges a 5.3 percent income tax to all taxpayers, including New Hampshire residents, who earned Massachusetts source income during the tax year. With thousands of employees telecommuting, they will continue to be taxed only for the days they previously worked in-person in Massachusetts, according to the Communications Director of the Commonwealth Office of Administration and Finance, Patrick Marvin. M.G.L. c. 62, § 2. “Massachusetts is going to do what’s right for Massachusetts. Members of both parties within the New Hampshire House of Representatives have expressed discontent with the order, challenging its legality. 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