[Ecooke21]

My soon to be wife and I are looking for a new house.. The problem is we would like to live in Seekonk, MA. and I work in RI..Will I get hit with double taxes for living in one state and working in another?..Also, I will become a 50/50 owner of the company in the very near future. does that effect anything, owning a business in a different state than I live?

[Rice-rocket1]

A couple of the people I work with live in RI and Conn but work in Mass. The pay both, but it works a little different. Mass tax is higher so they pay the full local and the difference between the two to Mass.

For ease of numbers if Mass' tax was $110 and RI was $100 they would pay RI to $100 and Mass would get $10. But for you it might be just pay the higher of the two since you live in the higher tax state.....

[ChrisNoF4i]

Originally posted by Ecooke21
Will I get hit with double taxes for living in one state and working in another?

It's not technically "double-taxation," but you will pay more taxes than if you lived in Rhode Island. Because you are physically working in Rhode Island, RI will tax you on the income you earned there, regardless of where you reside. If you become a Massachusetts resident, Mass. will tax you on any income you earn, no matter what state you work in. However, Mass. will give you a credit for any taxes paid to other states. Being that MA taxes are higher than RI, you will owe MA some extra money at the end of the year (it typically works out to between 1 and 2% of your income.)

So yeah, basically what Rice-rocket said.

[ChrisNoF4i]

Originally posted by Ecooke21
Also, I will become a 50/50 owner of the company in the very near future. does that effect anything, owning a business in a different state than I live?

Technically it depends on how the business is taxed. I.e. - is it a partnership, corporation, etc. But basically the income would be treated in the same manner as W-2 wages where RI taxes you first and then Mass gives you a credit for taxes paid to RI.