Am I required to file a massachusetts state return if I live in Rhode Island

Question

I am employed at a national company who has headquarters in South Carolina. I live and work in Rhode Island. I use my parents address address in Massachusetts for health insurance purposes. I have a chronic condition that I have been seeing a doctor in Mass for the last ten years. When I moved to Rhode Island 4 years ago, I wanted to maintain the same doctors. I was offered two insurance plans and the Rhode Island plan would not allow me keep the same doctors. The second plan that I chose allowed me to do so. I believe because the Massachusetts address is being used, I am having Mass taxes withheld even though I do not work in the state. Do I need to file a tax return for both states anyway?

Answer 1

You wouldn't have this mess if you weren't lying about your address for heath insurance.

When you truthfully tell the state that you live and work in RI so that you can get a refund of your state income taxes, you need to SIMULTANEOUSLY come clean with the health care provider and pay them back for all of the benefits you received that wouldn't have gotten if you had given your correct address.

Answer 2

You are aware that, regardless why you did it, you have committed fraud by telling the insurance company that you live somewhere other than where you really live.  If you didn't want to lose those doctors, you should have stayed in Mass.  How do you know that the new doctors would not be just as good.  You could have seen the old doctors while living in RI, but you would have had to pay out of pocket.  Those are the only honerable things to do.  Simply "wanting" to maintain the same doctors is no reason to commit fraud.

That being said, you do not owe tax in Mass since you neither live there nor work there.  You do owe tax to RI.  You'll have to let RI know you've been living/working there for the last 4 years and they will want back taxes.  You can ask Mass for the taxes back that you paid them for the last 4 years by filing amended tax returns showing that none of your income is taxable by Mass because you neither live or work there.  Good luck.