This one is a REAL pain in the A$$?

Question

I work in AL, Live in Florida, Florida has no state income tax yet my company took out some state taxes. Do I get this money back?

Now, do you pay taxes it the state that you work in or the state you reside in?

Answer 1

Actually, you pay taxes in BOTH states.

You must file a non-resident return in AL where you work. AL can and will tax the income you earned there. They are entitled to tax ONLY the income you earned in AL, however. If you have other income earned in FL, they can't touch that.

If you lived in a state that had an income tax, you'd get a credit for the AL income taxes paid. However as you live in FL, there's no income tax to take that credit against so you lose out on that. Sorry!

To correct another poster, it does NOT matter where the company is headquartered, it matters where YOU work and live. I work for a large multi-national company that is headquartered in MO. The only employees that pay MO state income taxes are those who either live in MO or work in MO. We have several employees who live in NH but work at a branch in MA. They pay MA state taxes. We have others who live in OK and work in AR. They pay taxes to both OK and AR.

Answer 2

Your employer withheld AL state tax and yes you do pay tax in the state where you work. You may consider filing an AL state tax return as an out of state resident to see if you get a refund. Good luck.

Answer 3

We live in New Hampshire, and my husband sometimes works for companies in Mass. and when he does he has to pay Mass. state taxes. Even though we don't have a state income tax. I believe it's based on where the company is. If he worked for a NH company in Mass. he wouldn't pay Mass. state income taxes.

Answer 4

Usually neighbor States have agreements to prevent guys like you from avoiding State taxes. You have to file AL tax return to get your money back (some of it anyway).

Answer 5

I live in Missouri and work in Kansas. I have to pay on both sides of the state line.