ehanson[at]pobox.com (Eric Hanson) wrote:

- quote -

Sorry to be getting back to you after the crucial date ... I
was out of the country from April 1 until the 15th. (no
compliance work for me!! <G> )

I think Art's and Rich's answers may not be correct because
they assumed a fact that I don't see in evidence ... namely,
that you performed your services for your employer in Rhode
Island. If you worked for an employer based in RI, but
performed your work in Massachusetts, you do not have any RI
source income, and RI tax should not have been withheld.
(If your employer does not have a business location in MA,
it may not be registered as an employer there, although it
should be if you are working there on its behalf.)

If you did not perform any of your services in RI, you
should file a nonresident RI return and claim a refund of
the entire amount withheld. If you performed some of your
services in RI, then you should prorate your wages on the
basis of days worked in and out of RI. If you performed all
of your services in RI, then you should file as Art and Rich
have suggested. I don't believe MA has a reciprocal
agreement with RI or any other state.

If all or part of your wages are subject to RI tax, MA will
allow you credit for the tax you pay to RI on that income,
limited to the proportion of your MA tax liability that
relates to the "double-taxed" income.

Katie in San Diego]

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

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ehanson[at]pobox.com (Eric Hanson) writes:

- quote -

Correct. First complete the RI non-resident return. When
that's done, complete the MA resident return. MA will give
you a credit for your RI tax liability, but not for more
than what MA's tax on that income would be. In other words,
unfortunately, you'll end up paying the higher of the two
tax rates, but you won't be double-taxed.

- quote -

No! You're required to file a RI non-resident return.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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Eric Hanson wrote:

- quote -

If RI and MA have a reciprocity agreement, the company
(probably) should have withheld MA taxes. If not, then
without checking the individual tax laws, you have to
file as an RI non-resident, and credit (at least some) of
the RI taxes against your MA resident taxes.

SDI is almost certainly NOT considered a "state income tax"
for the purpose of the "other state tax credit", but is
deductible as a "state income tax" on your Federal schedule A,
if you choose to itemize.

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In the year 2003 I worked for a company based in Rhode
Island and had Rhode Island state income tax withheld,
including what is listed as SDI on my W-2. I was also a
full-time resident of Massachusetts for the entire year.
This was my only income.

I am having a hard time figuring out how I should file my
state returns. Do I have to file a Rhode Island
non-resident, and then file a Massachusetts return? Or can I
just file only a Massachusetts return and have my RI state
taxes withheld amount credited to Massachusetts? Or am I
totally lost and driving down the wrong path. I have
searched the tax websites of both states, but have not found
a clear answer. Any help/advice would be greatly
appreciated. Thank you for your time.

--
Eric Hanson
ehanson[at]pobox.com

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