2006-08-13 02:50:56 · 13 answers · asked by BULL 3 in Politics & Government ➔ Law & Ethics
no, you have to file in both states but pay state income taxes in only one of the states. Alabama should have room on their form for you to note that your money was earned and ALREADY taxed in Georgia. Now, property taxes from Alabama and sales taxes from both still apply.
2006-08-13 02:56:22 · answer #1 · answered by Charles D 5 · 0⤊ 0⤋
Yes...you will have to pay state taxes in both states. You generally will get a refund from one state to cover the other states' taxes. It is fair because you work in one state while living in another. I have done this before and it generally equals out...the tax credit from Alabama will offset what you owe for Georgia.
2006-08-13 02:57:04 · answer #2 · answered by Connie H 1 · 0⤊ 0⤋
Our situation is the same, live in RI and work in CT. The employer takes out the CT State taxes and at the end of the year when we file we get that back and pay RI with it. You are not paying two states because during the year you are only paying taxes to the state you work in.
I know it's a bit confusing at first-you'll be an old pro soon! :)
2006-08-13 02:56:37 · answer #3 · answered by Eyez 3 · 0⤊ 0⤋
You pay state taxes in the state you live in. While your employer may take taxes out for Georgia, you must file in both states to prove residency. You aren't paying both states.
2006-08-13 02:54:27 · answer #4 · answered by tjjone 5 · 0⤊ 0⤋
For the same reason why when I lived in Missouri and worked in Kansas I had to pay taxes in both states. No it's not fair.
2006-08-13 02:56:52 · answer #5 · answered by couchP56 6 · 0⤊ 0⤋
If you live in Alabama you are required to file state income tax here. You should consult with a tax accountant as to what your rate of taxation is. It may be significantly reduced or prorated based on what you paid in Georgia taxes.
You may have to file a non resident tax statement in Georgia as well.
2006-08-13 02:59:30 · answer #6 · answered by bigtony615 4 · 0⤊ 0⤋
This is another example why the Fair tax Initiative is so important. Our lives, our economy, and our government would be simpler and more effective by eliminating state and federal income tax and moving to a consumption only form of taxation.
Interested?
Read more:
http://www.fairtax.org/
2006-08-13 05:46:20 · answer #7 · answered by blewz4u 5 · 0⤊ 0⤋
I am an employer on the GA/AL line. You have to pay both. It isn't fair, but then again you are talking taxes here. At least you have a job!!
2006-08-13 03:11:55 · answer #8 · answered by MrsMike 4 · 0⤊ 0⤋
No you pay state taxes to the state you reside in.
2006-08-13 02:56:19 · answer #9 · answered by framer_larry 3 · 0⤊ 0⤋
You only pay taxes for the state you live in. Your employer should have your pay deducted that way.
2006-08-13 03:02:30 · answer #10 · answered by freedomchild99 3 · 0⤊ 0⤋