2006-09-13 02:53:18 · 9 answers · asked by TT 1 in Business & Finance ➔ Taxes ➔ United States
Both, usually. Your paycheck will take out the income taxes due for the state you earned the money in (where you work) but you then have to file income tax forms with the state you live in (provided that state has a state income tax as most do), and file for credit for income taxes paid in the state you work in.
2006-09-13 02:57:15 · answer #1 · answered by wynterwood 3 · 0⤊ 0⤋
You are required to file in both states if both have an income tax. You will get credit in your "Tax Home" state for the taxes you paid in the state in which you worked. This is assuming that you have some income in both states. In some cases you may need to file ing both states to get refunds and or credits that you would be due. It is always a good idea to get the advise of a tax professional in the state that you live or the state that you work if that is easier. This is a great time of the year to do that as they are less busy before the tax season starts.
2006-09-13 17:59:44 · answer #2 · answered by ? 6 · 0⤊ 0⤋
States really differ on their taxing system, but I have worked in one state and live in another before. What happened when I filed was that I owed my home state taxes because they weren't recieving them from income. The other state payed back everything I had into it because I did not live there. So in the end, I came out with about $150 state refund.
2006-09-13 09:58:10 · answer #3 · answered by ANTHONY A 2 · 1⤊ 0⤋
You are subject to income tax in both states (assuming they both have income tax). Generally there are deductions or credits available that result in paying the equivalent of the higher of the two rates. You should consult a tax professional to learn the rules in your case. Once you know the rules, you may be able to do your own taxes.
2006-09-13 20:28:59 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
You must file in your State of Residence and the State of your employment.
You would get a credit on the taxes due in the state of residence for the State of employment (Non-resident return).
Talk to a local tax accountant.
2006-09-13 10:25:49 · answer #5 · answered by Joe the Expert 2 · 2⤊ 0⤋
I live in Nebraska and work in Iowa. I am taxed initially by Iowa. When it is time to do the income taxes, I have to file in both Iowa and Nebraska even though I have not had an Nebraska withholding taken out of my checks. I usually receive a credit for working in Iowa and living in Nebraska. I did not have to pay into Nebraska last year (I actually received a Nebraska and Iowa refund). Hope this helps you!!!
2006-09-13 10:04:48 · answer #6 · answered by jgmarletmissionmiddleschool 1 · 2⤊ 0⤋
You are taxed for your primary residence state.
2006-09-13 09:55:31 · answer #7 · answered by kja63 7 · 0⤊ 0⤋
Both.
However, some neighboring states have a reciprocity agreement which means that the employeer will withhold for your home state.
2006-09-13 14:11:47 · answer #8 · answered by Tanya E 2 · 0⤊ 0⤋
Your tax home is typically where you work, not where you live.
2006-09-14 02:07:32 · answer #9 · answered by Scott K 7 · 0⤊ 0⤋