MA State Tax - Do I have to file?

It's that time of year again 

Me and my wife left Massachusetts back in 2007 and so for that year had to file as part residents for federal and state, and claim the foreign tax credit, and so 2008 is our first year of being completely out of the states.

We got our federal taxes figured out, that's just a easy 2555 form to fill in along with the 1040 and foreign bank account form, that seems simple enough. But I'm unsure as to whether I have to file a state return for MA.

On the surface of it we certainly don't seem to meet the resident or Domicile criteria, in that we have no MA accounts, income, we have not re-registered to vote there or renewed any driving licenses.

I tried poking around the MA Department of Revenue website but it's of little help, it only makes reference to part year residents, or people who don't reside in MA but received MA income.

I think we don't count as being Domiciled in MA according to their tests, but I still worry that if I don't file a MA state return that I'll get some sort of threatening letter from the DOR and a late filing fee/fine.

Anyone able to clear this up? At the end of the day I'd rather spend the extra 15 minutes and $10 to file it then cause myself a lot of trouble later.

If you have no residence in Mass., no income from bank accounts, etc., and are no longer on the voting list, I don't see how they could claim you.  Are you paying income taxes in the UK?

If you have no residence in Mass., no income from bank accounts, etc., and are no longer on the voting list, I don't see how they could claim you.  Are you paying income taxes in the UK?

Unfortunately so, normal PAYE deductions by my employer.

Well I assumed that as well, I've just heard of some horror stories that some states will still consider you domiciled there unless you move to another state within the U.S and will more or less audit you to prove you aren't a resident anymore.

I think they use the excuse that you could just be temporarily away, and if you then ever move back, hit you for several years of none filing. Not that me and the wife are ever planning on moving back to Mass, they can keep their below zero winters thank you very much 

This is from the 2007 Mass. tax form:
"You must file a Massachusetts Nonresident/Part-
Year Resident Income Tax Return, Massachusetts
Form 1-NR/PY, if you were not a resident of Massachusetts
and you received Massachusetts source
income in excess of your personal exemption multiplied
by the ratio of your Massachusetts income
to your total income, or you were not a resident of
Massachusetts for the full year and your gross income
was more than $8,000 — whether received
from sources inside or outside of Massachusetts."

A lot of gobbledegook.  That last clause makes it sound like they could tax the whole of creation: you're not a resident and have income from Mass. or anywhere else?

A lot of gobbledegook.  That last clause makes it sound like they could tax the whole of creation: you're not a resident and have income from Mass. or anywhere else?

That's exactly the part I've having trouble getting my brain around.

"# Nonresidents: All non-residents whose gross income from :Massachusetts sources is more than $8,000 or greater than their entitled personal exemption (whichever is less), must file a Massachusetts return. The personal exemption is calculated by dividing the product of Massachusetts gross income by the entire gross income earned from all sources and the allowed personal exemption for their individual filing status . Nonresidents are to file Massachusetts Form 1 NR/PY-Non-resident/Part-Year Resident Individual Income Tax return. The gross income for a Massachusetts non-resident is the income earned from Massachusetts sources."
From another website, slightly more comprehensible.  I don't know how double-taxation fits into this.

You could try sending them a query on the Dept. of Revenue website and asking ... but then of course that's going to put the wind up!  That's why I always ignored the whole thing.

I was under the impression that when i was no longer a permanent resident of Mass that i didn't have to file a Ma State tax form.
I've religiously filed a federal one as i know that i have to by law..
So if i've supposed of been filing a Mass one all these years i'm in biiiiiiiig trouble ..

ssshhhhhh ...

You will discover that MA state defines a resident as:
Resident or Inhabitant, any natural person domiciled in Massachusetts or any natural person who is not domiciled in Massachusetts but who maintains a permanent place of abode in Massachusetts and spends in the aggregate more than 183 days of the tax year in Massachusetts, including days spent partially in and partially out of Massachusetts.http://www.mass.gov/?pageID=dorterminal&L=6&L0=Home&L1=Businesses&L2=Help+%26+Resources&L3=Legal+Library&L4=Regulations+(CMRs)&L5=62.00%3a+Income+Tax&sid=Ador&b=terminalcontent&f=dor_rul_reg_reg_830_cmr_62_5a_1&csid=Ador


The problem always has been to argue successfully that domicile in MA has ceased for State purposes but one has not acquired domicile in one of the countries of the UK.  One is aided slightly by the facts & circumstances test of MA compared to the tenacity of origin demonstrated in recent UK case law.  However breaking MA domicile may still be very difficult for many people.  There is no bright line test in MA as there is in some other States.  It seems best to rid oneself of available accommodation - including ceasing to habitually use a family home.

Phew then im safe  . I have no residence in Mass. and I only visit once to twice a year at the max and only stay for at the max 10 days each stay.
So at the max its 20 days a year.
pheeeeeeeeeeeeeeew ..

Again, thats my dilemma. I have no doubt that if they ever did ask me to prove it, I could point to how all my connections to MA ceased in 2007, and my last tax return to them was a part year resident. And as such could provide them with copies of a rental lease here, bank account statements etc.

But I would still prefer not to have to go through all that, but that said I don't want to keep filling in returns if I don't have to.

Any US Tax preparers want to chime in here?

Phew then im safe  . I have no residence in Mass. and I only visit once to twice a year at the max and only stay for at the max 10 days each stay.
So at the max its 20 days a year.
pheeeeeeeeeeeeeeew ..

Haha, sorry if I made your heart jump there. If it had been a couple of years I definitely wouldn't be worrying, it's only because this is the first year I'm considering not filing a MA return that I'm a little apprehensive.

I thought that US citizens had to be domiciled in some state (or potentially territory, etc. owned by the US). When I moved from MA to PA, MA wanted to keep counting me as a resident, and the burden seemed to be on me to prove I was not. I think you need to shw your are domicled someplace else (preferable someplace without a state income tax where your vote for president counts).

It varies from place to place.  MA, GA, VA & a few others are domicile based.  Most are not.  However most of us want to a\void becoming domiciled within the UK because this is advantageous here.  This is a fine dividing line!

Hi,

I am living in MA now and will be moving to the UK for two years.  I have had a few conversations with my company (who prepares my returns), and they notified me that I will be still considered domiciled in MA and need to pay taxes on my world wide income (since MA is one of the states that does not follow the federal 911 exemption).  It is up to the taxpayer to prove that they are no longer domiciled in MA.  I actually work in CT so it was suggested to me to try and move in with a friend in CT before I go (change my address, license, registration for my car and voting, etc.)  This is because CT follows the federal exemption and my income up to a certain $ amount won't be taxed (I still think CT is a domicile state).  However, what could be a problem is if I come back in 2 years and live or work in MA then the state could come back and get me on those taxes, since it would see me as never breaking domicile.  Are you planning on returning to MA in the future?  I guess all being said, MA is very complicated and I would check with a US (state) tax expert.  And think, they do call MA, "taxachusetts" for a reason!