You will need to file a nonresident Massachusetts return to claim the wages and any other income you earned in Massachusetts. You will get a state tax credit in RI for the MA state taxes you paid on your nonresident MA state tax return.
How to claim Rhode Island tax credit in Massachusetts?
Massachusetts residents must fill out a worksheet to claim a credit for income taxes they paid to Rhode Island. The worksheet compares the Massachusetts tax on the amount of income you earned in Rhode Island to the tax you actually paid to Rhode Island. The credit you’ll receive is the smaller of those two numbers.
What happens if you pay more in Rhode Island than in Massachusetts?
In other words, if you paid more to Rhode Island than you would have paid to Massachusetts, you won’t get a credit for the additional Rhode Island tax. If you paid less to Rhode Island than you would have paid in Massachusetts, you may owe additional tax on that income to Massachusetts.
Can a nonresident state tax your income in Ri?
Your nonresident state taxes any income you earn in that state. In some cases, states have a reciprocal agreement that allows you to be taxed only in the state you live. If RI and MA had a reciprocal agreement, then you would get back all of the MA withholdings.
Where does the RI TDI go on Ma tax return?
The associated RI TDI amount flows to MAWK_TC line 8 (“Enter the Total Tax paid to other jurisdictions…”) per MA Personal Income Tax Directive 12-1. The RI TDI amount also flows to Schedule A, line 5, and to the Rhode Island return (if needed for Form RITX-16, Claim for Refund of Temporary Disability Insurance Tax).
Do you have to file state taxes in Rhode Island?
You may need to file two state tax returns, as well as a federal return, if you live in Massachusetts and work in Rhode Island. Thousands of Massachusetts residents earn wages in Rhode Island, meaning they’re subject to the tax laws of both states.