If I live in Mass. and I get a job in R.I. will I be "double-taxed"?

Question

If I live in Mass. and I get a job in R.I. will I be "double-taxed"?

Answer 1

yes, but you get most of it back at the end of the year

Answer 2

You will file a Mass Resident return and an RI non resident return.

The RI return will include only income earned in RI. RI takes federal tax liability and multiplies it by 27.5 % (I think) then makes adjustments (Like income earned out of state).

The Mass return taxes all income (even from RI) then gives your a credit of the lower of tax paid to RI or what Mass would charge on that income.

Answer 3

You will have to fill out two state tax returns, but you will not be "double taxed."  Your RI employer will withhold RI taxes, but not MA taxes.  While you will have to pay RI non-resident income tax (on just your income from RI sources), most or all of that can be applied as a credit toward your MA resident income tax (payable on your total income from all sources).