If I work remotely for a company that is not located in my home state. Do I have to pay income tax for that state? I am a computer programmer.
Thanks
2007-07-25 09:03:45 · 8 answers · asked by Yonge 1 in Business & Finance ➔ Taxes ➔ United States
Usually you have to pay taxes on where you live, and where you physically work, but if those are in two different states you usually get a credit from the state you live in for the taxes you paid to the state you worked in. If you are working remotely for a company and working out of your house, you should only have to pay income taxes to the state you live and physically work in. Course your W-2 at year end could say something entirely different, but that's where the state credit for taxes paid to another state should come into play.
2007-07-25 09:10:36 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You generally pay income tax for the state of residence. If you live in one state and work in another, and the two states do not have a "reciprocity" arrangement, then you may be required to pay a certain amount of income tax in your work state.
But you're living and working in the same state, so that should generally be the only state you pay income tax to.
2007-07-25 09:10:36 · answer #2 · answered by Plea_of_insanity 5 · 0⤊ 0⤋
You live in State A but you work for a company in State B.
Whether you owe taxes to State B depends on the state tax statutes. State B may not require a tax return at all, you'll have to check your particular state to see.
If you are required to file, you will file as a resident of State A, and as a nonresident of State B. Do the B return first, and see if there is a tax liability. In some cases, State A will give you a credit for taxes you owe to State B.
2007-07-25 11:11:08 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
I live in Michigan but work in other states throughout the year and stay in motels, I m only home 4-5 days every 5-6 weeks, but I get paid from the company based in Colorado (I have never been to Colorado). They do not take state taxes out of my checks. So who do I pay state taxes to and will I get a 1099?
2017-01-13 11:17:25 · answer #4 · answered by Laura 1 · 1⤊ 0⤋
Yes I paid all my taxes and I'm from the great state of Illinois the politicians pay to play state. I think all the politicians in the states and government should not take pay increases for year and help their states out. The people pay too much to them any way.
2016-03-15 23:09:19 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You are required to pay in the state where you live and the state where you did to work to earn the income. In this case, both requirements are satisfied by your state of residence.
2007-07-25 09:14:17 · answer #6 · answered by livemoreamply 5 · 0⤊ 0⤋
I'm not an accountant or tax expert, but I believe state taxes are based on residency. (Pay where you live)
2007-07-25 09:08:22 · answer #7 · answered by Michael W 4 · 0⤊ 0⤋
Your end of the year taxes are based on where you live. The majority of states will kind of transfer your taxed paycheck income to the state you live in, to be applied to your end of year state tax filing.
Call & Coordinate with both state income tax to ensure your filing correctly. This happens all the time. Think of the people who live in one state but commute to work to another state.
For example my coworkers who live in NJ but work here in Philadelphia. They don't deal with Philadelphia state tax and all the taxes, including their local city wage tax, actually gets applied to the NJ state end of year tax filing.
2007-07-25 09:14:14 · answer #8 · answered by thoughtdream 2 · 0⤊ 1⤋
NO--IN THE STATE WHERE YOU RESIDE.
2007-07-25 09:08:57 · answer #9 · answered by Anonymous · 0⤊ 0⤋