How To File Explore Filing Options For Massachusetts Personal Income Tax Returns
E-filing is the fastest way to file your tax return.
To learn which software vendors are approved by DOR, please read “Learn about approved self-tax preparation software.”
If you choose to file on paper, choose the correct mailing address to submit a complete, signed copy of your Massachusetts tax return.
If you are due a refund, send your Form 1 or Form 1-NY/PY to:
; ; ;Massachusetts DOR; ; ;PO Box 7000; ; ;Boston, MA 02204
If you need to make a payment with your return, send your Form 1 or Form 1-NR/PY and payment to:
; ; ;Massachusetts DOR; ; ;PO Box 7003; ; ;Boston, MA 02204
If using a courier service such as;FedEx, DHL, please send your Form 1 or Form 1-NR/PY to:
Spouses Who Live In Different States Face State Income
Do you know the difference between a domicile and a residence? If you and your spouse are living apart understanding the difference will help you avoid unnecessary taxes.
Long-distance marriages are on the rise. The number of married couples who live apart more than doubled between 1990 and 2015 to 3.5 million couples, according to the U.S. Census Bureau.
With proper planning, spouses who live in different states can avoid paying unnecessary state taxes. The spouse who moved should first determine whether his or her domicile has changed. Domicile and residency arent always the same. An individual may reside in multiple states, but can have only one domicile that taxpayers fixed, permanent home.
Individuals domiciled in a state are automatically considered state residents for tax purposes. Usually, this means the state is entitled to tax that spouses worldwide income. Given the differences in state taxes, this can have major consequences for a couples finances.
Consider a hypothetical couple, Jack and Anne, who lived in Georgia. Anne accepts a job offer in Florida, but Jack doesnt relocate because he is caring for an ailing parent. Anne moves to Florida but will spend most weekends with her husband.
Anne should first check Georgias and Floridas residency rules. Georgia law says that individuals who spend more than 183 days per any continuous 12-month period in Georgia are automatically residents.
How Are Taxes Affected If You Move To A Different State During The Year
By: Kate Kershner;|;Updated: Apr 16, 2021
Not very many people can relax when moving to a different state. Between hunting for real estate, packing, transporting and unpacking, a big move can be one of the most stressful times in a person’s life. But by the time tax season rolls around, there’s no reason to let the panic return. If you moved to a different state in the middle of the tax year, you’re not going to get penalized or overloaded with paperwork. In fact, here’s some good news: Your federal tax return won’t even be affected.
See? No panic necessary. And although it might seem intimidating to learn that you’ll be required to file returns in two different states, there’s no reason to find the process daunting. You just need to know the rules of each state, and we’ll walk you through what you should be looking for.
First, make sure that each state you lived in collects a state income tax. Several states don’t, and that means any income earned in these states doesn’t have to be reported on a state return. If you’re not lucky enough to live in one of those states, your next step is to get the right form to declare your income.
But while that answers how your tax preparation is affected, it might not tell you what exactly is happening with your actual taxable income. And in some ways, it’s difficult to say, since each state had different income taxes.
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How Reciprocal Agreements Work
Although it may begin to feel like it when you start asking questions at tax time, youre not the only one who lives in one state and works in another. Some states have planned for this and created reciprocity agreements to make your life easier. Through these agreements, you can live in one state and work in a neighboring state without paying taxes there. Instead of paying taxes where you work, you will pay taxes in your resident state, which is the state where you live.
Pennsylvania and New Jersey, for example, have such an agreement. If you live in Pennsylvania but work in New Jersey, you pay your tax to Pennsylvania where you live. New Jersey will not withhold any state money from your paycheck. They will of course continue to withhold federal taxes as required.
Seventeen different states have these types of agreements in place, so its worth asking your employer if one applies to your situation. Your companys payroll department should absolutely know about any applicable reciprocity agreements. If they dont, your states Department of Revenue office will.
Dont panic if your employer makes a mistake. Lets say you start your new job in New Jersey and file a tax exemption form because you live in Pennsylvania. Somebody made a mistake, however, and the payroll department didnt get the memo. When you get your paycheck, you see that your employer withheld New Jersey income tax from your check even though they werent supposed to.
What To Consider When Filing Multiple State Tax Returns
First, you need to understand the different rules regarding the states where you lived or worked throughout the year. You can find the tax office and information for any states where you lived or worked during the year via the Federation of Tax Administrators.
Here are other items you should consider:
- If you plan to prepare your own taxes, be ready to pay more than someone who only has to file one state tax return. Some online tax filing software programs like TurboTax and H&R Block will charge a fee per state tax return .
- Do your best to pay enough state taxes by checking your state tax withholdings throughout the year. One way to do this is to use a state tax withholding calculator online or speak to a CPA if you need assistance. If you determine that you are not paying enough state taxes, contact your human resources department at work to increase your state tax withholdings.
Find out when your state tax return is due. This is especially the case for this 2021 tax season. While the IRS has postponed the tax deadline to May 17 for federal income tax returns for most Americans, some states have also changed their state tax return due dates. The AICPA has a complete listing of updated state tax deadlines.
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What To Do With The Taxes You Collect
You must send the sales taxes that you charge to the appropriate state. Many states, such as Michigan, require that you submit monthly sales tax returns when you make payment.
You’re collecting the tax directly from the consumer and segregating it in its separate business bank account, so you wouldn’t consider it to be part of your income.
Failing to pay the correct amount in full and on time is a serious offense, and it could lead to losing the right to do business within the state, as well as hefty fines.
When To Charge Another State’s Tax
You would typically collect sales tax for another state only if you have a physical presence in that state. In legal terms, this is known as having sales tax nexus there.
Your physical presence might be a retail store, a warehouse, or a corporate office, even if the facility is not open to the public. Entering into an affiliate agreement with a resident of the state may also establish a physical presence or nexus there in some states.
Check with your tax advisor as to whether traveling to a state and conducting business there would create nexus if you do business at your customer’s locations. This might cause that state’s sales tax rules to trigger.
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Filing A Paper Income Tax Return
Before starting your Minnesota return , you must complete federal Form 1040 to determine your federal taxable income.
We use;scanning equipment to process paper returns. Follow these instructions to ensure we process your return efficiently and accurately:;
- Use your legal name, not a nickname.
- Use whole dollar amounts. Round your amounts to the nearest whole dollar.
- Leave lines blank if they do not apply to you or if the amount is zero.
- Do not write extra numbers, symbols, or notes on your return, such as decimal points or dollar signs. Enclose any explanations on a separate sheet unless you are instructed to write them on your return.
- Place a copy of your federal return and schedules behind your Minnesota forms. Do not include your federal Forms W-2 or 1099.
- Sign and date your return. Your spouse must also sign if you are married and filing a joint return.
- Do not use staples or tape on your return. You may use a paper clip.
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- Faster refunds: A paper-filed return can take up to 8 weeks versus up to 2-3 weeks for an electronically filed return.
- Confirmation:Youll receive confirmation that your return was received and accepted.
- 24/7 access:You can access INfreefile at any time, day or night.
- Easy to use: All INfreefile options are user-friendly and include step-by-step instructions.
- Fewer errors:Electronically filed returns have a 2%;error rate, compared to a 20%;error rate for paper-filed returns.
- More efficient:You can prepare and file your federal and state tax returns at the same time.
- Convenient:INfreefile provides the added convenience of direct deposit for refunds and direct debit for payment of taxes owed.
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How Do You File Taxes For 2 Different States
If you have income in more than one state or you moved to a different state during 2018, TurboTax will prompt you to file the returns in those states based upon how you completed the personal information as to whether you moved or if you made money in more than one state.;
Here is more information about filing returns in more than one state, plus note the links at the bottom related to how to file a non-resident state return or a part-year resident state return, depending upon your situation.
I Live In One State But I Work Over The Border Where Do I File
The general rule of thumb is that you need to file taxes where you earned the money. That means you need to file a nonresident state return in the state where you worked.
If you have non-work income , youll declare that in the state where you live.
Most people who live in one state and work in another must file two state income tax returns .
The major exception to this rule is if you work in a state with reciprocity agreements. Reciprocity agreements are mainly a midwest and east coast phenomenon. They allow employees to withhold and file only in their state of residence. This simplifies taxes considerably. Thomson Reuters keeps an updated list of all states with reciprocity agreements.
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Check With Your Employer
Before you get started preparing your taxes, a good place to look to determine if you might have an obligation to file a tax return in any state other than where you currently live is your Form W-2, said;Anjali Jariwala, certified financial planner, CPA and founder of FIT Advisors in Torrance, California.
“The W-2 will usually show your federal income, withholding, etc., and then towards the bottom it will also show your state wages and your state withholding” said Jariwala. “To the extent you were working in another state and your employer was withholding taxes for you in that state, you would notice it on the W-2.”
The pandemic has certainly thrown a wrench into even what I would call the baseline rules of where you work and where you liveMark Steberchief tax officer, Jackson Hewitt Tax Services
It also means that if you are thinking about moving, you should tell your employer, said Nancy DeRusso, managing director and head of financial wellness at Goldman Sachs Ayco Personal Financial Management.
“When employers withhold money for taxes, they will hold for federal taxes and state taxes,” said DeRusso. “So if they need to change the state withholding, like you moved from New York to California, unless you tell your employer you’ve done that, they’re not going to change the withholding.”
People who are self-employed will have a different process, as there is no withholding. Generally, they’ll only owe income taxes where they live, said Jariwala.
Remote Work Throws A Wrench In Taxes
This year, because so many people relocated and worked remotely due to the pandemic, things might be extra complicated.
Because of the pandemic, many states have issued new rules about “nexus” a term describing a tax relationship between two entities and remote work.
Basically, because so many people are working from different locations, some states have said that telecommuting does not trigger nexus in their state, meaning that people may not have a filing obligation there for 2020.
One such state is Connecticut, which said that if your job is in the state but you worked remotely from another location in 2020, you won’t owe taxes in Connecticut.
But each state has made its own rules, and not all states have said that telecommuting doesn’t impose nexus, meaning taxpayers should be extra careful to check where they may have an obligation to file this year. Some may owe taxes in more than one state depending on individual rules.
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You Live In One State And Work In Another State
If you live in one state but happen to work in a neighboring state, you may have to file a state tax return with both states. However, if your state has a reciprocity agreement with that state, you will typically only need to pay state taxes to the state where you live.
Lets say you live in Arizona but work in California. Arizona charges a top state tax rate of 4.5% and California charges a top tax rate of about 12%. Since Arizona taxes its residents on income earned in any state, you will pay Arizona state taxes on your California earnings. You wont pay taxes in both states.
Irina Petrashkevich, certified public accountant and senior manager for tax policy and advocacy for AICPA says many states have entered into reciprocal agreements to ensure employees who reside in their states are not also subject to tax in other states where they may go to work.
This is intended to provide tax simplicity to taxpayers. Reciprocal agreements typically specify that employers should withhold income taxes on a nonresident employees wages only for the employees resident state, Petrashkevich says.
Each of the reciprocal agreements has their own rules and require forms to be completed by employees in order for employers to be exempt from withholding under the agreements, Petrashkevich says. If youre unsure about what rules apply to you, she advises that you speak with a tax professional.
Infreefile Vendors For Tax Season 2021 Are Posted Below Be Sure To:
- To ensure you can file both your federal and state return for free, access these free file products from this page.
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- Read our Indiana freefile FAQ below.
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If Your State Doesn’t Have A Reciprocal Agreement
If the state you work in does not have a reciprocal agreement with your home state, youâll have to file a resident tax return and a nonresident tax return.
- On your resident tax return , you list all sources of income, including that which you earned out-of-state.
- On your nonresident tax return , you only list the income that you made in that state.
In most cases, your home state will allow you to claim a tax credit on your resident tax form for the taxes that you paid to your work state.
How To Determine Location Of Online Sales
A retail transaction that takes place entirely online is sometimes taxed according to the shipping address.
States presume that online orders are physically placed from the shipping address with the intent to use the item at the shipping address. Make sure that you read the rules for the specific states in which you do business.
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What Is Irs Free File
The IRS Free File Program is a public-private partnership between the IRS and many tax preparation and filing software industry leaders who provide their brand-name products for free. It provides two ways for taxpayers to prepare and file their federal income tax online for free:
- Traditional IRS Free File provides free online tax preparation and filing options on IRS partner sites. Our partners are online tax preparation companies that develop and deliver this service at no cost to qualifying taxpayers. Please note, only taxpayers whose adjusted gross income is $72,000 or less qualify for any IRS Free File partner offers.
- Free File Fillable Forms are electronic federal tax forms you can fill out and file online for free. If you choose this option, you should know how to prepare your own tax return. Please note, it is the only IRS Free File option available for taxpayers whose income is greater than $72,000.
Find what you need to get started, your protections and security, available forms and more about IRS Free File below.
The IRS does not endorse any individual partner company.
- A copy of last year’s tax return in order to access your Adjusted Gross Income
- Valid Social Security numbers for yourself, your spouse, and any dependent, if applicable
Income and Receipts