State Income Tax question

JHS
Wed, 24 Jan 2018 13:50:46 +0000

Regardless, the OP will not pay tax to California on income earned in MA.

This statement is wrong, or at least not right. The OP’s child is taxable in her state of residence – California, no question about it – on income earned everywhere. She is taxable in Massachusetts as a nonresident on income she earns in Massachusetts (although her tax rate may be affected by income she earns elsewhere). She gets a credit on her California taxes for taxes she pays to Massachusetts on income that is taxable in California, up to the applicable California rate on that income. If the Massachusetts rate is the same or higher than the California rate, she won’t pay any California taxes on that income. If the Massachusetts rate is lower, she will pay California the difference between the Massachusetts rate and the California rate.