My employer is moving to Wisconsin. I will be moving also, but have the option of living in either Minnesota or Wisconsin. Knowing which state takes my taxes will influence my decision.
2007-06-24 07:40:11 · 9 answers · asked by joey 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
If you live and work in Wisconsin you would have to pay taxes to only Wisconsin. But if you worked in Wisconsin and lived in Minnesota, you would have to pay taxes to both Wisconsin and Minnesota. The way it would work would be you would have to file a non-resident Wisconsin tax return and be taxed on your Wisconsin wages only. Minnesota would also tax you on your Wisconsin wages, along with all your other income, but would give you a credit for the tax liability you had on your Wisconsin return, but it would be the lessor of your Wisconsin tax liability or the Minnesota tax for the same income. What you should look at is what is the tax rate for each state, and what deductions if any do they allow. By coming up with what the "effective" tax rate is for each state, you can see which state would be truly lower.
2007-06-24 15:19:48 · answer #1 · answered by Anonymous · 0⤊ 2⤋
Generally, your employer will take out state taxes for the state that THEY are located in (Wisconsin.) if you move to Minnesota, you would be responsible for filing both WI and MN taxes. You would file a WI non-resident return and a MN resident return. You would get a credit for taxes paid to WI on your MN return. If the company has Nexus (physical location or as defined in your state) in your state, they may withhold your resident state taxes, but you would still have to file in the state you lived in AND the state you work in.
Some states have agreements with neighboring states regarding income tax, so you should check that out too.
2007-06-24 08:03:06 · answer #2 · answered by Mark S 5 · 0⤊ 1⤋
That depends. If the two states have a reciprocity agreement in place, you'll only pay income tax in your home state. NJ and PA have such an agreement. IN and IL used to but it was tossed a few years ago. WI and MN do not appear to have any such agreement for income taxes.
So, lacking a reciprocity agreement, here's what happens. You will pay non-resident income taxes in the state where you work. Your return with that state will ONLY show the income earned in that state. You'll then file a resident return in your state of residence, listing all income from all sources. Your home state will give you a credit for the income taxes paid to the other state.
The net result of this is that you will pay income taxes at the higher rate of the 2 states, at least for the income earned out-of-state. You are not double taxed.
2007-06-24 08:02:45 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 1⤋
The state in which you live is ultimately going to get the taxes. I guess I should give you more info. Basically your company is going to take the taxes out like they normally would. You will file in the state of which your residence it. If live in Minnesota, you are going to pay their taxes. Same if would live in Wisconsin. Both those states have prettty hefty taxes so your are going to pay about the same. Cost of living is pretty high too, they are both comparable to each other. In the long run, I would not worry who gets the taxes, I would live where you like the best and is the most feasible for you.
2007-06-24 07:43:23 · answer #4 · answered by atlantaboi3 5 · 0⤊ 2⤋
I am in the military stationed in England and I have to pay my state taxes in the state that I claim residence, which is Ohio.
2007-06-24 08:35:08 · answer #5 · answered by Anonymous · 0⤊ 0⤋
@mrs jb(or whatever you call yourself...)you are WRONG as usual in your terse and judgemental answers. Just because you are Navy does NOT mean your information is relevant or correct to other services. In any case, I am a Managed care nurse working for a large military med center. Yes, you can make your MIL or mom or any other form of parent your dependant and it is not a big deal. What coverage she will get is called "direct care" meaning she/he is eligible for care at the military hospitals only. she will get her drugs for free at the pharmacy and get all her care at the military hospital for free but outside network care in the civilian sector is not covered under tricare benefits. best of luck to you all. add: the care on post/base(i work with navy as well) is considered "space available" as well meaning only if there is plenty of appointments available within access to care standards.
2016-04-01 02:21:14 · answer #6 · answered by ? 4 · 0⤊ 0⤋
You pay the taxes to the state where you live. So, even if your company moves, if you dont move, your tax will remain the same.
2007-06-24 07:50:23 · answer #7 · answered by Kiana 3 · 1⤊ 2⤋
Generally it is the state with the higher taxes will take the tax out of your paycheck. For example, if you work in MA, but live in NH(which doesn't have a state tax) you will have to pay MA taxes (which sucks). If you live in ME but work in MA, you will have to pay MA tax, and the difference to ME (about 3%). The best bet is to work and live in the state that has the lowest tax. If that isn't possible, contact someone who prepares taxes for a living and ask them the benefits of one state vs. another.
2007-06-24 07:51:52 · answer #8 · answered by icebabe 3 · 0⤊ 4⤋
where you'll work... my sister is Italian, but she works in the USA... and she pays taxes in the USA... so, where u'll work...
;-) Kisses
2007-06-24 07:43:42 · answer #9 · answered by *AmErIcAn HeLeN* 4 · 0⤊ 5⤋