Dear mccook-ga;
Thank you for allowing me an opportunity to answer your interesting
question.
Regardless of where you work, you will have a responsibility to pay
taxes on your earnings to the state in which the income was generated.
You will not be obligated to New York for taxes on the income
generated in Massachusetts, but you will be obligated to the state of
Massachusetts.
Moreover, as a resident New Yorker, you may be eligible for a New York
resident tax credit for the amount you end up paying annually to the
state of Massachusetts. The New York State Department of Taxation and
Finance says this:
“If you are a full-year or part-year resident of New York State and if
any part of your income was taxed by another state, a local government
within another state, the District of Columbia, or a Canadian
province, you may claim a credit against your New York State tax. The
credit is allowable only for the part of the tax that applies to
income received in the other taxing authority while you were a New
York resident.”
http://www.tax.state.ny.us/pit/Income_Tax_2002/Credits/Resident_Cr.htm
To claim this tax credit, simply fill out Form IT-112-R downloadable
here:
http://www.tax.state.ny.us/pdf/2002/inc/it112r_2002.pdf
Attach Form IT-112-R and a copy of the other state or local tax
returns to your Form IT-201, IT-203, or IT-205.
Now, if your income will be considered a lump sum distribution the
process is a bit different but nonetheless positive where you are
concerned. The New York State Department of Taxation and Finance says
this about lump sum distributions and resident tax credits:
“If you are a full-year or part-year resident individual of New York
State, and if the ordinary income portion of a lump-sum distribution
you received was taxed by another state, a local government within
another state, the District of Columbia, or a province of Canada, you
may claim a resident credit against separate tax on lump-sum
distributions. The credit can be claimed against New York State tax
and is allowable only for the part of the other jurisdiction’s tax
that applies to the income received in that jurisdiction while the
taxpayer was a New York State resident.”
http://www.tax.state.ny.us/pit/Income_Tax_2002/Credits/Res_Cr_Lump_Sum.htm
To claim this credit, you must complete Form IT-112.1, New York State
Resident Credit Against Separate Tax on Lump-Sum Distributions. Attach
Form IT-112.1, a copy of federal Form 4972, Tax on Lump Sum
Distributions, and a copy of the income tax return filed with the
other state or local tax return to your Form IT-201, IT-203, or
IT-205.
Form IT-112.1
http://www.tax.state.ny.us/pdf/2002/inc/it112_1_2002.pdf
Form 4972, Tax on Lump Sum Distributions
http://www.irs.gov/pub/irs-pdf/f4972.pdf
These credits, should you qualify for them, will help offset the
burden of paying taxes in your non-resident state.
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comments and I look forward to working with you again in the near
future. Thank you for bringing your question to us.
Best regards;
Tutuzdad-ga
INFORMATION SOURCES
LAW AND TAX
http://www.cpuniverse.com/newsite/archives/2001/apr/lawtax.html
NEW YORK STATE – DEPARTMENT OF TAXATION AND FINANCE
http://www.tax.state.ny.us/pit/Income_Tax_2002/Credits/Resident_Cr.htm
SEARCH STRATEGY
SEARCH ENGINE USED:
Google ://www.google.com
SEARCH TERMS USED:
NEW YORK TAX LAWS |
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