Would I have to pay income tax for the state I work in, even though I would be living across the border in the state with no income tax? This hypothetical question is based on the idea of living in Nevada (no income tax), but working in neighbouring California (high income tax).
2007-05-07 17:26:09 · 9 answers · asked by MJQ 4 in Business & Finance ➔ Taxes ➔ United States
Not sure what answer to select as best...will put it up for a vote.
2007-05-10 16:38:16 · update #1
if you work for wages, the company/person you work for will withhold state income tax from your check. You would file a non-resident tax return with CA
if you itemize on your federal return (Schedule A),, you may be able to deduct the state income tax you pay to CA instead of the sales tax if that amount is larger.
2007-05-07 17:31:36 · answer #1 · answered by Jo Blo 6 · 1⤊ 0⤋
It really doesn't matter where you live, it's where you work that counts!! You pay taxes on the amount of money you make. Your employer takes the appropriate amount off your check,
then at income tax time you have to file an income tax return.
2007-05-07 17:38:25 · answer #2 · answered by sun_beam61 3 · 0⤊ 0⤋
Yes. Since 2002,there is a 9 step process for determining it. You will prepare a California tax return and get any refund or determine any extra you owe. If you tax preparer works in both states, ask them, or call someone like H and R Block. They deal with it all the time. Or if you prefer, call the California department of Revenue and see what they say.
Washington residents working in Oregon face the same issue. After I moved to Washington, I had to incorporate my business or pay Oregon State on the portion I earned there. If your office is in Nev, there may be a loophole like we have here.
Good luck getting fairness here. Do consult a CPA that works in both states. 15 minutes with them could save you $$thousands$$.
2007-05-07 19:22:37 · answer #3 · answered by Anonymous · 0⤊ 2⤋
You need to pay taxes from the State you work in. If you work in two states you must pay taxes from both - but only the amount you earned from each.
2007-05-07 17:37:20 · answer #4 · answered by Brick 5 · 0⤊ 0⤋
With the exception of a commuter tax, you owe taxes based on where you live, not on where you work. It is a little more complicated if you live in mutliple states in the same year.
However in the example you give, if you live in Nevada and work in California, you would not owe state income tax. If your employer did withhold CA income tax, you would file a non-resident form to get a refund.
2007-05-07 17:35:05 · answer #5 · answered by VATreasures 6 · 0⤊ 4⤋
I don't know the laws of California, but I do know that each state's laws are different. My experience was in a state which only taxed those who were residents, and in that situation, I didn't have to pay taxes.
2007-05-07 17:32:01 · answer #6 · answered by Still reading 6 · 0⤊ 2⤋
Yes, you would have to file CA state tax return.
2007-05-07 17:55:50 · answer #7 · answered by Judy 7 · 1⤊ 0⤋
You have to file a non-resident return for CA.
2007-05-08 02:30:21 · answer #8 · answered by acmeraven 7 · 0⤊ 0⤋
you would pay a non-resident tax. it's a little bit of a break.
2007-05-07 17:33:08 · answer #9 · answered by Anonymous · 0⤊ 0⤋