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| dbranco[at]charter.net wrote: - quote - > On Jan 11, 3:58 pm, Rich Carreiro <rlc-n...[at]rlcarr.com> wrote:
withholding in the Union. The following link at the CT Dept. of> > dbra...[at]charter.net writes: > > > How should I set up my W-4 witholdings for both states? Is it true > > > that you get taxed in both states? So does that mean my takehome with > > > be lower than working in Mass? > > Yes, you get taxed by both states. However, MA will give dollar-for-dollar > > credit for the tax paid to CT -- but not more than the MA tax would have > > been on that income. In other words, while you are not double-taxed, > > you'll effectively be taxed at the highest rate between the states (which > > will probably be CT's rate, because MA has a flat 5.3% tax on wages). > > > Because of MA giving a credit for income tax paid to CT, you should > > fill out the CT equivalent of a W-4 to have CT withhold enough to > > cover the CT tax. Then fill out the M-4 to have MA take out enough > > to cover whatever MA tax won't be covered by the credit for the CT > > tax. > > > In other words, the bulk of your state tax withholdings will actually > > likely go to CT, even though you are a MA resident. > > > -- > > ich Carreiro rlc-n...[at]rlcarr.com > > > -- > > << ------------------------------------------------------- > > > << The foregoing was not intended or written to be used, > > > << nor can it used, for the purpose of avoiding penalties > > > << that may be imposed upon the taxpayer. > > > << > > > << The Charter and the Guidelines for submitting posts > > > << to this newsgroup as well as our anti-spamming policy > > > << are atwww.asktax.org. > > > << Copyright (2007) - All rights reserved. > > > << ------------------------------------------------------- > > How do I find out how much I would need to withhold given my salary? > Do I withold 6 just like ma? The Constitution State has the most complex set of rules for tax Revenue Services contains the withholding form, tables and explanations. Good luck! http://www.ct.gov/drs/cwp/view.asp?a=1509&q=392906 -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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| On Jan 11, 3:58 pm, Rich Carreiro <rlc-n...[at]rlcarr.com> wrote: - quote - > dbra...[at]charter.net writes:
Do I withold 6 just like ma?> > How should I set up my W-4 witholdings for both states? Is it true > > that you get taxed in both states? So does that mean my takehome with > > be lower than working in Mass? > Yes, you get taxed by both states. However, MA will give dollar-for-dollar > credit for the tax paid to CT -- but not more than the MA tax would have > been on that income. In other words, while you are not double-taxed, > you'll effectively be taxed at the highest rate between the states (which > will probably be CT's rate, because MA has a flat 5.3% tax on wages). > Because of MA giving a credit for income tax paid to CT, you should > fill out the CT equivalent of a W-4 to have CT withhold enough to > cover the CT tax. Then fill out the M-4 to have MA take out enough > to cover whatever MA tax won't be covered by the credit for the CT > tax. > In other words, the bulk of your state tax withholdings will actually > likely go to CT, even though you are a MA resident. > -- > ich Carreiro rlc-n...[at]rlcarr.com > -- > << ------------------------------------------------------- > > << The foregoing was not intended or written to be used, > > << nor can it used, for the purpose of avoiding penalties > > << that may be imposed upon the taxpayer. > > << > > << The Charter and the Guidelines for submitting posts > > << to this newsgroup as well as our anti-spamming policy > > << are atwww.asktax.org. > > << Copyright (2007) - All rights reserved. > > << ------------------------------------------------------- > How do I find out how much I would need to withhold given my salary? -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#1
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| dbranco[at]charter.net writes: - quote - > How should I set up my W-4 witholdings for both states? Is it true
Yes, you get taxed by both states. However, MA will give dollar-for-dollar> that you get taxed in both states? So does that mean my takehome with > be lower than working in Mass? credit for the tax paid to CT -- but not more than the MA tax would have been on that income. In other words, while you are not double-taxed, you'll effectively be taxed at the highest rate between the states (which will probably be CT's rate, because MA has a flat 5.3% tax on wages). Because of MA giving a credit for income tax paid to CT, you should fill out the CT equivalent of a W-4 to have CT withhold enough to cover the CT tax. Then fill out the M-4 to have MA take out enough to cover whatever MA tax won't be covered by the credit for the CT tax. In other words, the bulk of your state tax withholdings will actually likely go to CT, even though you are a MA resident. -- ich Carreiro rlc-news[at]rlcarr.com -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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| On Jan 11, 9:30*am, dbra...[at]charter.net wrote: - quote - > How should I set up my W-4 witholdings for both states? * Is it true > that you get taxed in both states? *So does that mean my takehome with > be lower than working in Mass? > I currently will be at 80,000 per year and in mass I withold on my W-4 > 6 dependents.... > Can someone help here, I have tried to read the tax laws and I am more > confused that when I started.. As a resident of Massachusetts, you are subject to MA tax on all of your income, from all sources. Your earnings in Connecticut are also subject to Connecticut income tax. You will file as a resident of MA and a nonresident of CT. MA will give you credit for the tax you pay to CT on your CT earnings, limited to the proportion of your MA tax liability that relates to that income. See Mass. Form 1, Schedule Z. Your employer should withhold CT tax from your earnings, since MA effectively cedes the tax to CT by allowing the credit. Katie in San Diego -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#-1
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| How should I set up my W-4 witholdings for both states? Is it true that you get taxed in both states? So does that mean my takehome with be lower than working in Mass? I currently will be at 80,000 per year and in mass I withold on my W-4 6 dependents.... Can someone help here, I have tried to read the tax laws and I am more confused that when I started.. Thanks -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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| job, live, mass, starting, taxes |
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