Massachusetts Automatic Extension For Expats?

Hi,

We moved out of the U.S. from Massachusetts in 2012. I am not certain if we need to file a Mass. 2013 return or when.

We had a small amount of severance income in 2013 from a company bases in Mass. We had interest income from a bank headquartered in Mass. but also has branches outside Mass. We sold our house in Mass. in 2013. We sold stock held by a multinational brokerage but our personal broker is in Mass.

Am I correct to assume we need to file a Mass. return? As expats, do we get the same automatic two month extension we get from the feds?

The Mass DOR site was not helpful.

I plan on having a professional do our taxes after the April 15 rush is over (as expats, our federal taxes are not due until June). I don't know if I need to do something for Mass. before that.

Thanks, Gary

Reply to
Gary
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That's MA source income regardless of MA residency.

If you were not a MA resident when the interest was paid out, that's not MA source income even if it came from a MA bank.

That's MA source income.

If you were not a MA resident when you sold the stock, that's not MA source income.

If you have any MA source income and your gross income everywhere (not just in MA) is over $8000, you need to file.

See:

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I wouldn't assume that. MA's income tax system is totally decoupled from the US's, except for certain specific IRC provisions it accepts.

Reply to
Rich Carreiro

Also, I think per the expatriation tax rules the income is considered US source income so should be on the 1040. If a regular non-citizen sold stocks there would be no capital gain.

Also, when you give up your US citizenship you pay tax on your unrealized gains if your income or net worth is high enough, but you also get a stepped up basis if tax was paid. So you might have a different cost basis on the US tax return as compared to the tax return of your new country.

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