Do we have to pay state taxes in our own state on income earned (salary) in other state?

Question

I am a resident of georgia. went to seattle (washington) for a 3 months internship. Washington has no state tax. Now am I supposed to pay taxes to georgia state on the income earned during that period ?

Answer 1

Normally yes. Your state of domicile (GA) is generally entitled to tax your income regardless of where you earned it.

You'll have to review the instructions for your GA taxes to see if GA gives you any sort of exemption for income earned out-of-state.

Most states with income taxes will give you a credit for taxes paid to another state (for income earned out-of-state) but if WA has no income tax obviously there won't be any credit there.

Answer 2

Yes. Generally, when you are a resident of a state, you are taxed on all of your income, regardless of where it is earned. If you performed work in a state where there was an income tax, you would be subject to tax on the income earned in that state, so you would be taxed by both states on the same income. However, you can claim the taxes paid to the nonresident state as a credit against the taxes on the same income in your resident state.

Answer 3

I'm an american stationed in Germany. The nice thing about being here is that we don't pay bills at all if we chose! We can get tax relief forms for anything we buy off post and anything on post is never taxed. Our homes come with the job. We pay for internet and our car insurance. Not bad.

Answer 4

No. Your accountant will work out that split time between states. It would be a different situation if you were living in Georgia and working in a neighboring state like Alabama. But even then, there are reciprocity agreements between the states to minimize your tax pain...