Many are forced to choose between higher taxes or pay cuts based on their physical location. Deaths “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. Even still, the rule change only serves to continue tax revenue collection as normal for Massachusetts. 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. Help. With companies forgoing renting office space, many have begun to distribute cost-of-living differentials based on where a remote employee is based. “Because there is no New Hampshire income tax or sales tax, you make up for that with the high property tax. Massachusetts has a 5.05% income tax. A lot of Republicans in New Hampshire like to say taxation is theft, which it isn’t,” said Horrigan. Still, many Granite Staters are concerned with the legality of the order, and the precedent it may set for the future. New Hampshire has no income tax. 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: Gov. It is not designed to address all questions which may arise nor to address complex issues in detail. Sununu called the ruling a “direct attack” on New Hampshire and an attempt to “pick the pockets” of its citizens. I don’t think any party is going to stomach for a broad-based income tax,” said Horrigan. 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. Though the lack of income tax was not a factor in his move to New Hampshire, he believed it to be a benefit. 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. Here's why. Boston is set to have an 'acting mayor' for months. 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. 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 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. The Massachusetts regulation will remain in effect until Dec. 31 or 90 days after the coronavirus state of emergency in Massachusetts is lifted. Horrigan believes there remains no clear solution where both sides can compromise without a broad-based income tax. 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?" (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. Turcotte currently works for Salesforce, a company based out of Burlington, Massachusetts. Rep. Timothy Horrigan (D-Durham), was disappointed with the order, concerned with the impact it would have on his constituents. Sununu was joined by New Hampshire politicians on both sides of the aisle who criticized the ruling. 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. Turcotte is one such employee who is impacted by this. New Hampshire residents who previously worked in-person in Massachusetts are continuing to have their taxes withheld by their employers. 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The rule is set to expire at the end of the end of 2020, with no plans to extend it further. “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. Many Granite Staters believe since they now work at home in New Hampshire, they are no longer subject to the Massachusetts income tax. This discussion has ended. 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 … Because Burlington is Boston Metro, they have a higher pay rate. But the lawsuit got me optimistic,” said Fisher. Freedom from income taxes is a New Hampshire delight: The Granite State is one of nine that don’t tax ordinary income. 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. Testing locations Photo courtesy of Jimmy Emerson, DMV/Flick Creative Commons. Map Here's her plan to deal with it. Only about 100 to 150 cases are tackled by Supreme Court each year. What would be frustrating is, when will they change it back,” said Fisher. Nothing contained herein supersedes, alters or otherwise changes any provision of the Massachusetts General Laws, Massachusetts Department of Revenue Regulations, … Posted by Benjamin Domaingue | Oct 29, 2020 | News | 0 |. Connecticut has filed an amicus brief in support of New Hampshire, as has Arkansas, Hawaii, Indiana, Iowa, Kentucky, Louisiana, Missouri, Nebraska, New Jersey, Ohio, … A tropical bird has been spotted in Maine twice this winter. 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. 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 … “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.”. Even with the current rule, Fisher remains optimistic that it won’t extend beyond 2020, as is the current law. For Massachusetts personal income tax purposes, Massachusetts residents are generally taxed on all of their income from whatever sources derived. A full-year resident is someone who has a home in Massachusetts for the entire tax year or maintains a home in Massachusetts. Nearly 100,000 New Hampshire residents normally commute to Massachusetts for work. They are only taxed for the days they previously worked in Massachusetts. New Hampshire Gov. 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. Coronavirus With how New Hampshire collects its taxes, Fisher feels he is disproportionately impacted by the taxes of both states. “There is a cost of living differential. 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). Andrea Campbell grew up blocks away from 'Mass. “It’s kind of annoying, but it won’t change our mindset. “The Administration does not comment on pending lawsuits.”. He was forced to telecommute due to COVID-19 and purchased a house in Madbury. M.G.L. By going full-time in New Hampshire, by corporate, I get a 10% pay cut,” said Turcotte. Daily #s 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. Resources 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. 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. Freedom from income taxes is among New Hampshire's delights: The Granite State is one of just nine that don't tax ordinary income. The whole budget has a huge hole blown in it like ours,” said Horrigan. Boston Helps. Massachusetts residents who earn a gross income of at least $8,000 need to file a tax return. “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. Income earned inside Massachusetts by an out-of-state resident is subject to Massachusetts taxes. I lose that benefit,” said Fisher. 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. 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. 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. 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. Traditionally, income is taxed based on where the employee works. “I don’t think we’re going to pass a broad-based income tax. “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. 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