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Taxed in Rhode Island and Massachusetts?

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  • Taxed in Rhode Island and Massachusetts?

    Please help,
    I am a sales representative who's territory covers three states.
    Massachusetts, Rhode Island and Connecticut.
    The company I work for is based out of New Jersey.
    I live in Massachusetts and my paycheck has the state taxes deducted from Rhode Island.
    I have no office in Rhode Island only a home office in Massachusetts.
    I have asked for this issue to be resolved and the only answer I have received from my employer is that I need to pay taxes in both states??
    Is this correct?
    I would appreciate any help.
    A two-timing taxed man.
    Last edited by rplamag; 11-30-2007, 04:45 PM.

  • #2
    Why Rhode Island? Do you have an office there?
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


    • #3
      Thank you for taking the time to read my question.
      No office in Rhode Island, I actually work out of my home in Mass.
      The majority of my accounts are in Providence so I am considered the Providence territory representative from my company.
      Hopefully this makes sense.


      • #4
        This is a question of income tax nexus. (I have a subspecialty in sales tax nexus).

        Since you spend more than a de minimis (very tiny number) amount of time in Rhode Island servicing your Rhode Island clients, you are subject to Rhode Island income taxes. Of course if you NEVER physically enter the state, the answer might be different.

        Assuming Massachusetts and Rhode Island have an interstate tax compact, you should get a credit on you Massachusetts' tax for any Rhode Island tax paid.

        Just keep good records and get some help in filing you tax returns.



        • #5
          Thanks for the info.
          I will go through this with my tax guy so I do not end up in jail.
          Massachusetts would drop the hammer on me and would let a killer go free.
          Thank you all for your advice.


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