i recently moved over the border of one state but continue to work in previous state. will i have to pay taxes

Question

to the recent state i live in even though they keep takin extreme high taxes out of previous state. will this show up on income tax

Answer 1

You have to pay the tax where you are living.

Answer 2

You will probably have to file in both states.

You have to file where your residence is. Whether you have to file where you are paid depends on a few things, mostly state law. One thing is certain, you can't get any credit for what was withheld if you don't file there.

As far as the tax burden for each, you have to either read the laws or hire a tax guy. Me, I'd hire a tax guy.

The income state may decide they have no claim if you don't live there, or it may just be a lower schedule. The home state probably wants you to declare it all, reduced by whatever another state claims.

Your employer might be able to send your paycheck directly to the house in the future, so you don't have this problem next year, but because of withholding, you have it for this year.

For now, you need a tax guy.

Answer 3

First, you should inform your employer of your new address and ask if the tax withholding should change. Then you should see an accountant if possible to determine your tax liability. Some states have reciprocity with each other and will in effect count the income tax collected as a deduction from your income. Each state has different rules regarding income taxes, but generally the state of residence determines the burden.