Return plus 3 states---question??

[Trnr395]

Okay, I have a client that is a Mass. resident but doensn't have any mass. W2's, traveled to Minnesota, and Oregon to do a couple construction jobs and this is shown on his W2. He is going to recieve everthing that was withheld on his federal return. The Minnesota return is filed as a nonresident return and shows the portion of income that was earned in that area for the short amount of time that he was working there. Same situation in Oregon and he ends up getting refunds for everthing that was withheld from the two states. When I complete the massachussetts resident return he ends up owing a little bit of money after I enter in the income taxes paid to other jurisdictions....does this sound correct even though he doesn't have any mass. income. only just $169 worth of interest???

Any help would be greatly appreciated

thanks

[mcb39]

Okay, I have a client that is a Mass. resident but doensn't have any mass. W2's, traveled to Minnesota, and Oregon to do a couple construction jobs and this is shown on his W2. He is going to recieve everthing that was withheld on his federal return. The Minnesota return is filed as a nonresident return and shows the portion of income that was earned in that area for the short amount of time that he was working there. Same situation in Oregon and he ends up getting refunds for everthing that was withheld from the two states. When I complete the massachussetts resident return he ends up owing a little bit of money after I enter in the income taxes paid to other jurisdictions....does this sound correct even though he doesn't have any mass. income. only just $169 worth of interest???

Any help would be greatly appreciated

thanks

It certainly sounds correct to me, but I am in WI and don't know the Mass laws. I just filed one for a client who worked in WI and IA and had the same situation. He had to file IA for the money he made there and WI (his home state) for all of it. Then, he got a WI credit for the taxes Paid (withheld) to IA. We thought he was going to owe, but he actually ended up getting refunds from Fed, WI and IA. This was also construction and showed me the wisdom of order the "All States" book again next year as the one I have is from 2003 and was a lot of help; but, of course, things change. Good Luck. All 3 of mine were e-filed and accepted. So far so good.

[taxtrio]

Okay, I have a client that is a Mass. resident but doensn't have any mass. W2's, traveled to Minnesota, and Oregon to do a couple construction jobs and this is shown on his W2. He is going to recieve everthing that was withheld on his federal return. The Minnesota return is filed as a nonresident return and shows the portion of income that was earned in that area for the short amount of time that he was working there. Same situation in Oregon and he ends up getting refunds for everthing that was withheld from the two states. When I complete the massachussetts resident return he ends up owing a little bit of money after I enter in the income taxes paid to other jurisdictions....does this sound correct even though he doesn't have any mass. income. only just $169 worth of interest???

Any help would be greatly appreciated

thanks

If he received a complete refund from the other two non-resident states, then what taxes "paid" to another state did you take as a credit on Mass. Return... I don't know Mass. tax law, but in Michigan you only get a credit for tax paid and NOT refunded from the other state....???

Just my thoughts... P.S.

[Yardley CPA]

If he received a complete refund from the other two non-resident states, then what taxes "paid" to another state did you take as a credit on Mass. Return... I don't know Mass. tax law, but in Michigan you only get a credit for tax paid and NOT refunded from the other state....???

Just my thoughts... P.S.

It sounds right to me. In New Jersey you receive a credit for taxes paid to other jurisdictions not sure about Mass.

[Lion EA]

In CT you receive a credit for a tax LIABILITY paid to another jurisdiction, up to the amount CT would've charged. So, if this client has NO tax liability in other states, then he might not have a credit in his home state.

[LindaB]

When I complete the massachussetts resident return he ends up owing a little bit of money after I enter in the income taxes paid to other jurisdictions....does this sound correct even though he doesn't have any mass. income. only just $169 worth of interest???

I can't tell for sure from this, but are you NOT including on the MA return the wages he earned in the other two states? I don't know about MA, but if he were a resident of MI and worked temporarily in other states, he would be taxed in MI on all of his income.

[kcjenkins]

....does this sound correct even though he doesn't have any mass. income. only just $169 worth of interest???

Any help would be greatly appreciated

thanks

That is where the problem is with your thinking. ALL his income is MA income, because he is a MA resident!!!! He gets credit for the taxes that he had to pay to the other states, but he pays MA taxes on all his income, as long as he is a MA resident.

[RoyDaleOne]

I am aware of two methods states use in taxing their citizens (residents). MA using the worldwide income method, which treats all the world-wide income as MA income and taxes that amount, while giving you a tax credit for state income tax "paid" to other states. If my mind is not failing me I checked this treatment and found that it was approved by the US Supreme Court, Inter-state commerce clause and all that.