[Hidden-tech] Working remotely for out of state company

[Jeremy Dunn]

Hi Bethany,

The concept you're looking for is "nexus", which means whether a state has
the authority to tax certain income.

My tax advisor has consistently guided me (15+ years) that if I provide
services for clients in other states, while I'm currently *in* MA, then only
MA has nexus (my income from that client is only taxable in MA).

But if I physically travel to the other state and provide services to that
client FROM that state, then that state also has nexus (if they have a state
income tax) and I would need to file an income tax return for that state.

Keep in mind that income taxes paid to other states are deductible from your
MA income tax bill, so you don't get double-charged.  It's just a hassle to
file more tax returns, in particular since the non-resident returns require
you to apportion your income...the calculations are time-consuming.

Good luck!

Jeremy

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From: "Bethany Seeger" <bethany at seeger.ws>
Subject: [Hidden-tech] Working remotely for out of state company

Hi everyone, 

I recently started working remotely for an institution in another state.  I
know there are MA state tax implications, but unsure of what they are and
the stuff I read online is unclear. I plan on talking to a tax
accountant/lawyer, but also figured I'd ask this list since it's likely that
some of you are in the same boat. 

If you have experience with this and have some advice, can you please email
me, off list?   I've read a few contradictory things online, so I'm mostly
interested in personal experiences rather then web pages. 

Thanks,
Bethany
bethany at seeger.ws