“The Commonwealth has implemented temporary regulations that are similar to those adopted by other New England states,” Massachusetts Department of Revenue spokeswoman Naysa Woomer said in an email statement. The whole budget has a huge hole blown in it like ours,” said Horrigan. I lose that benefit,” said Fisher. Earlier this month, the Commonwealth Office of Administration and Finance released a revised FY21 tax revenue estimate which has seen a decrease to $27.592 billion, an 11% decrease from consensus revenue estimate of $31.159 billion in January 2020.        Charts Traditionally, income is taxed based on where the employee works. I don’t think any party is going to stomach for a broad-based income tax,” said Horrigan. New Hampshire residents who previously worked in-person in Massachusetts are continuing to have their taxes withheld by their employers. A couple thousand a year, it wasn’t enough to be bummed out about. M.G.L.        Map “The Commonwealth has implemented temporary regulations that are similar to those adopted by other New England states,” Massachusetts Department of Revenue spokeswoman Naysa Woomer said in an email statement. Even still, the rule change only serves to continue tax revenue collection as normal for Massachusetts. Though his company can change where he is based, companies have begun to become creative with the new influx of remote workers. Horrigan believes there remains no clear solution where both sides can compromise without a broad-based income tax. It’s costing me $5000 out of pocket,” said Turcotte. Even so, Horrigan believes Massachusetts is not entirely to blame for the situation. Matt Fisher, now a resident of Madbury, is an employee of Emerson College in Boston. They are only taxed for the days they previously worked in Massachusetts. Help. Here's her plan to deal with it. Boston is set to have an 'acting mayor' for months. The legality of the order remains in question. Massachusetts has a 5.05% income tax. New Hampshire Gov. Deaths With companies forgoing renting office space, many have begun to distribute cost-of-living differentials based on where a remote employee is based. Massachusetts is asking the U.S. Supreme Court to decline a petition filed by the state of New Hampshire over cross-border income tax collections during the pandemic. The regulation, which is in effect until Dec. 31 or 90 days after the state of emergency in Massachusetts is lifted, raised strong objects in New Hampshire, one of nine states without an income tax. “We are going to fight this unconstitutional attempt to tax our citizens every step of the way, and we are going to win,” he said. The Massachusetts regulation will remain in effect until Dec. 31 or 90 days after the coronavirus state of emergency in Massachusetts is lifted. In August, the New Hampshire Attorney General Gordon MacDonald, in a letter to the Massachusetts Department of Revenue, called the temporary tax measure unclear, overboard and said it raised constitutional concerns. Massachusetts Taxes Massachusetts charges a 5.3 percent income tax to all taxpayers, including New Hampshire residents, who earned Massachusetts source income during the tax year. Since you will not have an NH state income tax filing, just check that you selected "no" to " Did you make money in any other states?" Even with the current rule, Fisher remains optimistic that it won’t extend beyond 2020, as is the current law. For example, if a New Hampshire resident worked 50 days with 25 in Massachusetts and 25 in New Hampshire, only half of their income would be taxed. Even with the legal battle between the states, approximately 492 people from Durham and Madbury commute to Massachusetts for work in some capacity according to Horrigan. Of course, I was frustrated. Because of COVID-19, many employees have been forced to telecommute. “When I did my taxes, instead of paying $10,000, I ended up paying only half or two-thirds of it. Turcotte currently works for Salesforce, a company based out of Burlington, Massachusetts. “It’s kind of annoying, but it won’t change our mindset. What would be frustrating is, when will they change it back,” said Fisher. With how New Hampshire collects its taxes, Fisher feels he is disproportionately impacted by the taxes of both states. Freedom from income taxes is among New Hampshire's delights: The Granite State is one of just nine that don't tax ordinary income. Chris Sununu. I couldn’t get on board [with the initial outrage] as the tone was accusatory. Only about 100 to 150 cases are tackled by Supreme Court each year. A full-year resident is someone who has a home in Massachusetts for the entire tax year or maintains a home in Massachusetts. Sununu was joined by New Hampshire politicians on both sides of the aisle who criticized the ruling. UNH student Heath Howard runs for State Rep. Halloween Extravaganza is celebrated for it’s 11th year, #FIGHT4HER Community members observe 47 minutes of silence in honor of International Women’s Day. Though the lack of income tax was not a factor in his move to New Hampshire, he believed it to be a benefit. Over 80,000 employees crossed into Massachusetts to work every single day, or 15% of all commuters, according to Gov. Nearly 100,000 New Hampshire residents normally commute to Massachusetts for work. New Hampshire is challenging a Massachusetts measure that continues to tax nonresidents that formerly commuted to work in the Bay State, but now work from home because of the pandemic. In this file photo, a sign urged out-of-state motorists traveling on Interstate 93 North from the Massachusetts border into New Hampshire to quarantine for 14 days in Salem, N.H., on April 21, 2020. “The Administration does not comment on pending … With this rule, I can’t deduct this. The state of Massachusetts implemented a temporary rule allowing businesses to continue to withhold income taxes from out-of-state employees who work remotely due to the coronavirus (COVID-19). Democratic U.S. Rep. Chris Pappas also attacked the ruling as unfair. Because of the financial burden of the new tax rule, Turcotte’s company has “relocated” him to another state, where no such tax rule exists. Under normal circumstances, only income earned in Massachusetts would be taxed. Rep. Timothy Horrigan (D-Durham), was disappointed with the order, concerned with the impact it would have on his constituents. Many Granite Staters believe since they now work at home in New Hampshire, they are no longer subject to the Massachusetts income tax. Andrea Campbell grew up blocks away from 'Mass. Members of both parties within the New Hampshire House of Representatives have expressed discontent with the order, challenging its legality. Before the pandemic, New Hampshire residents working for Massachusetts-based companies paid income taxes based on the number of days they worked in that state. With thousands of employees telecommuting, they will continue to be taxed only for the days they previously worked in-person in Massachusetts, according to the Communications Director of the Commonwealth Office of Administration and Finance, Patrick Marvin. “There is a cost of living differential. Massachusetts has a 5.05% income tax. This rule only serves as a continuation of previous established precedent for out-of-state workers. “It wasn’t the reason we moved to NH. Generally, income tax is imposed on the state of residence, but many states also assert the power to tax non-residents who perform work within their state. “I am no longer based in Burlington, I am based out of San Francisco as a remote employee in New Hampshire,” said Turcotte. Chris Sununu of New Hampshire recently tweeted that the State of New Hampshire will be presenting a case to the Supreme Court on the matter. The Office of Charlie Baker and the Office of Chris Sununu, as well as the New Hampshire Department of Labor and Massachusetts Department of Revenue, have not responded for comment. Freedom from income taxes is a New Hampshire delight: The Granite State is one of nine that don’t tax ordinary income. It remains to be seen whether the case will be heard by the Supreme Court. “I certainly want them [my constituents] to have more money. Coronavirus Concord, NH - Today, Governor Chris Sununu issued the following statement after the Massachusetts Department of Revenue published and approved a final rule that imposes Massachusetts' income tax on New Hampshire residents who are working from home for Massachusetts companies, despite strong opposition from New Hampshire residents: By going full-time in New Hampshire, by corporate, I get a 10% pay cut,” said Turcotte. Many are forced to choose between higher taxes or pay cuts based on their physical location. “I applaud Governor Sununu for quickly announcing a plan to file lawsuit against this new rule and make it clear that New Hampshire will never accept an income tax in this state.”. Here's why. The state Department of Justice is reviewing whether other states are improperly collecting income tax from New Hampshire residents working from home, Gov. Connecticut has filed an amicus brief in support of New Hampshire, as has Arkansas, Hawaii, Indiana, Iowa, Kentucky, Louisiana, Missouri, Nebraska, New Jersey, Ohio, … “I don’t think we’re going to pass a broad-based income tax. and Cass.' 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