"euphemia" <jsaines[at]aol.com> wrote:

- quote -

I'm a little confused by your question, but I take it that
you plan to make your move from NY to MA sometime next year
(2005).

If you are a NY resident for any part of 2005, you will file
a part-year resident return reporting all of your income
earned or received during the period of NY residence
(including your MA earnings during that period). NY will
give you credit for the tax you pay to MA on that amount.
As a result you will pay state tax on that amount, net, at
the higher of the two states' average rates for your income
level, filing status, etc. (probably NY).

NY will not tax any of your income after you physically move
to MA with the intent of remaining there permanently or
indefinitely, except for income with a source in NY. Income
from intangible assets (bank deposits, CDs, stocks and
bonds, etc.) generally has its source at the residence of
the owner, so after you move to MA you will be subject to
state tax on that kind of income only in MA (even if the
paying bank, etc. is located in NY). However, if you
perform services for your MA employer in NY, or have income
from other NY sources such as real or tangible personal
property located there, you will owe NY tax on that income.
MA will give you credit for the tax you pay to NY on that
income, if any.

Katie in San Diego

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

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"euphemia" <jsaines[at]aol.com> wrote:

- quote -

new york taxes appear to be higher than mass.

take a look at
http://www.retirementliving.com/RLtaxes.html

which also includes some interesting trivia... time to start
looking into a new hampshire relocation

....
The data presented on the linked page that follows shows
states ranked by tax burden as a percentage of income. The
taxes include those paid by individuals AND businesses to
state and local governments. Business are included because
they usually pass their tax costs on to consumers.

The top five states where the tax burden as a percent of
income is the highest are: New York (12.9%), Maine (12.3%),
Ohio (11.3%). Hawaii (11.3%), Rhode Island (11.1%). The
United States average is 10.0%. The District of Columbia is
12.9%.

The five states with the lowest tax burden as a percent of
income are: Alaska (6.3%) 50th, New Hampshire (7.5%) 49th,
Delaware (8.2%) 48th, Tennessee (8.5%) 47th, and Texas
(8.7%) 46th.

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I live in NY but will be starting a job in MA. I plan to
move to MA full time within a month or so. Will my MA wages
remove both MA and NY taxes because I live out of state?

If so, next year (2005) do I file both a NY and MA return
even though I didn't work at all in NY in 2004?

Are MA taxes lower than NY state taxes?

I'm a novice at compliacted tax situations.

Thanks for any help.

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