Massachusetts Nonresident Apportionment Methods

When nonresidents earn or derive income from sources both within Massachusetts and elsewhere, and no exact determination can be made of the amount of Massachusetts source income, an apportionment of income must be made to determine that amount considered Massachusetts gross income.

Apportionment Methods:
The three most common apportionment methods used to determine Massachusetts source income are as follows:
Gross income is multiplied by a:

• Employees Compensated on an Hourly, Daily, Weekly, or monthly Basis:
  fraction, the numerator of which is the number of days spent working in Massachusetts and the denominator of which is the total working days;
• Employees Compensated on a Mileage Basis:
  fraction, the numerator of which is the total mileage traveled in Massachusetts and the denominator of which is the employee's total mileage upon which the employer computes total wages;
• Salespersons:
  fraction, the numerator of which is the amount of sales made within Massachusetts and the denominator of which is the amount of sales made everywhere.