If you work in a different state than you live what state income tax would you pay?

Question

I live Tennessee which has no state income tax and may be soon working in Louisiana which does levy a state income tax.

Answer 1

you'll need to file for non-resident income tax for louisiana

http://www.revenue.louisiana.gov/sections/individual/indincome.aspx#nriit

Answer 2

then Louisiana will get you for income taxes.

And at their full rates on all your Louisiana income, too.


Worse, some states do not permit some of the usual itemized deductions to be taken on their state income taxes, especially if the subject real estate is not in their state. I have no idea if Louisiana does stuff like this or not. [I live in Florida.]


You can probably find out some of this from looking at the Louisiana Income Tax forms for out of state residents. Check the state's website to find 'em.


GL


ps to "theladygeorge" (above) -- wrong. Both where you work and where you live have the right to levy income taxes, if they have any. I know -- I've been paying to two, three, or four different states for years.

Answer 3

You file a non-resident return in the state you work and pay state income taxes to that state. If the state where you live had an income tax, you would file a tax return in that state as well and include the income earned outside the state. Most state with an income tax offer a credit based on taxes paid to other states. The credit may or may not equal the taxes paid to the other state.

Note to monica7786: Military personnel are specifically treated differently than non-military people. The military base is essentially treated as Federal property and not part of ANY state.

Answer 4

In your situation you WILL be paying LA tax on the income you earn in LA. You will file a LA non-resident return listing only the income earned in LA and pay any tax due.

If you lived in a state with an income tax you would also file a resident return in your home state, listing all income from all sources. You would get a credit from your home state for the taxes paid in LA. The net effect is that you pay income taxes at the higher of the two state's rates for the income earned out-of-state.

Answer 5

You generally will be required to file an income tax return in both states. One will give you a credit for tax paid in other state. File a nonresident return in the state in which you work and a resident return in the state in which you live. Whether you have to pay income tax depends on your filing status, income, state tax laws, etc.

Answer 6

There is a form in Louisiana called Employee Withholding Exemption Certificate (L-4) it should be provided to you by your employer at your request. It applies to people who do not have state income tax in their home state and who DO NOT reside in Louisiana at all. I have completed this form many times while working in the oilfield and living in Florida. This form still applies and you ARE exempt even if you are staying on company property, a hotel, or wherever while working in Louisiana as long as you are NOT a legal resident of the state. Here is the link for the form for LOUISIANA:

http://revenue.louisiana.gov/taxforms/1300(4_11)F.pdf

Answer 7

Some people have to pay dual taxes.

Suppose you are a legal immigrant from nation X to nation Y. You have bank accounts in both nations. Both nations try to tax you on your total income. As taxpayer it is your job to figure out what laws and treaties exist that might let you deduct taxes from one place from taxes some other place.

A lot of people live in communities along state borders.

Your employer is supposed to deduct taxes based on your state of residence, whatever rates apply to that state & also federal ... income, county tax, city tax, social security, medicare, etc.

Your employer might have a payroll software system that is for the birds in working correctly.

If you have a bank account, private telephone ... they also deduct relevant taxes based on where you live.

Some auto dealers will advertise that if you buy the car there, you can save taxes relative to their competitors across state line or other location. This is a fraud, because when the title of ownership is registered in your state of residence, you will end up having to pay any taxes you saved on.

In 1984 I was working for a company in Kentucky, and for various reasons I chose to leave that company and go to work for one in Indiana. The KY company was paying me $ 15 k a year, and doing a lot of things to annoy me. The IN company started me at $ 20 k a year.

Unbeknownst to me, the IN company was in financial trouble, which I found out when they went bankrupt.

It took me a month of perhaps the hardest unpaid work in my life (unless you call unemployment compensation "pay") to find another job, this one in Illinois, starting me at $ 23 k a year.

So I had a challenge for my next year's income taxes.
I had worked in KY first 2 months.
I had lived in IN for about 1/2 the year.
I worked in IL for about 1/3 the year.
There were a few weeks when I had a new job but not yet established new residence.

How to figure out what was owed each state?
I went to H+R Block for help.
They figured it out.
Their fee was microscopic compared to my expectations.

I have used them every year since.

Answer 8

You pay taxes to both the state you work in and the state you live in. You usually get a credit for taxes paid to your non-resident state on your resident state return if any.

My father worked in NH (no state income tax) while we lived in MA (state income tax). He had to pay MA tax on his NH income.

I worked in RI while I lived in MA. I had to file RI non-resident and MA resident returns. I got a credit for the lesser of the tax charged on RI income in RI or MA tax on the RI income.

Active duty military pay state taxes in their "State of Record" which is usually the state they enlisted in. For example: Massachusetts resident enlisted in Navy and was stationed in Florida. He pays Mass state tax on military pay.
Florida resident enlists in Navy and is stationed in MA. He pays no state income tax (Florida has none) If he were married and wife worked in MA, she would pay MA state tax on MA income. She would also have to file "Married, Filing Separate" on MA return.

Answer 9

although louisiana takes out taxes, you pay taxes in whatever state you have a permanent address, so as long as your perm address stays in tenn, and you keep your tenn license, at tax time, you will get back all of the money louisiana took out for taxes. i am a travel nurse and am in the same situation, as long as you have a good tax person, you should be fine

Answer 10

My friend and her husband are stationed on the Marine base Twentynine Palms in Southern California but they are citizens of Phoenix, Arizona and I know they pay Arizona income taxes.