MA income?

[Kea]

New client moved to TX in 2007, but still has Mom's MA address on bank and brokerage statements. MA wouldn't consider these as MA sourced income, would they? I just want to verify that I don't need an MA non-resident return.

Thanks.

[kcjenkins]

Yes, MA might very well want to take that stand, since it raises questions about whether he did in truth move his residency. He'd really be smart to change those addresses, and anything else that ties him to MA, unless he's happy to pay taxes there.

[Kea]

He said he can easily change the addresses. He lived and worked in TX for all of 2008. Is there anything else he should do / documentation to keep to prevent MA from taxing him?

Thanks

[Catherine]

He said he can easily change the addresses. He lived and worked in TX for all of 2008. Is there anything else he should do / documentation to keep to prevent MA from taxing him?

Thanks

MA is _extremely_ reluctant to believe that people are no longer residents. Moving those bank account mailing addresses is very important. Also make sure that your client no longer has a MA driver's license, and that he registers to vote in the new location. A copy of his lease (or house purchase documents?) with the date clearly shown is also a good idea to keep on hand.

We get this all the time with folks who move out of state; MA will try to dun former residents as residents. There are pages and pages of forms to go through if they try to go after this guy. Email me off-list or through the forum if they try to cause trouble for your client and I'll walk you through it.

Catherine

[Kea]

Thanks Catherine,

I'll pass all these suggestions on to him. But for now, we sit tight and hope MA doesn't send any letters?

He did mention that he got the insurance letter from them. When he explains to them why he no longer needs MA insurance, might that help take care of any potential state tax issues?

[Catherine]

Thanks Catherine,

I'll pass all these suggestions on to him. But for now, we sit tight and hope MA doesn't send any letters?

He did mention that he got the insurance letter from them. When he explains to them why he no longer needs MA insurance, might that help take care of any potential state tax issues?

When you say "Mass insurance letter" do you mean the 1099-HC, or some other letter?

If you fill out a Mass Form 1, without that 1099-HC you lose the personal exemption. I'd hold on to that one, too, just to be safe.

Catherine

[Kea]

I haven't filed a MA return for him (and don't plan to, if not necessary). He told me he received a letter from them reminding him to get MA insurance. He didn't specify a form #. He was already planning to call them to get that cleared up.

Thanks!