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If a Rhode Island resident works in another state, such as Massachusetts or Connecticut, the wages will be taxed in the state where the wages are earned. The Rhode Island resident may claim a credit for income tax paid to the other state on the RI-1040 resident income tax return. 8.
Extensions - Rhode Island allows an automatic extension to October 15 if no additional tax is due and if a federal extension is filed.
Massachusetts and Connecticut have real estate licensing reciprocity agreements with Rhode Island. Simply put, once your earn your Rhode Island real estate license you can apply for the Massachusetts and Connecticut real estate license.
States - Reciprocal Agreements StateStates in AgreementNorth DakotaMinnesota, MontanaOhioIndiana, Kentucky, Michigan, Pennsylvania, West VirginiaPennsylvaniaIndiana, Maryland, New Jersey, Ohio, Virginia, West VirginiaVirginiaKentucky, Maryland, District of Columbia, Pennsylvania, West Virginia13 more rows
Since a bill was passed disallowing the increase in the section 179 depreciation under the Jobs and Growth Tax Relief Reconciliation Act of 2003, section 179 depreciation will remain limited to $25,000 for Rhode Island pur- poses.
This amendment increased the amount of taxable pension and/or annuity income that can be exempted from Rhode Island personal income tax from $15,000 to $20,000 starting with tax year 2023.
Massachusetts, however, does not have a reciprocal agreement with Rhode Island. Connecticut, Delaware, Nebraska, New Jersey, New York and Pennsylvania impose what is referred to as the convenience of the employer rule for withholding.
Rhode Island has a higher income tax rate of 5.99%, but only on income above $155,050. In Rhode Island, income is taxed at 3.75% up to $68,200 and at 4.75% for $68,200 to $155,050. However, Rhode Island has a higher base sales tax rate of 7%, compared to Massachusetts's 6.25%.