I live in Washington but work in Idaho. I want to know how the taxes work.?

Question

I purchased some large ticket items in Washington (8.6% sales tax) this year and I'd like to deduct them through the sales tax deduction. However, now that I took a job in Idaho, am I going to be better off taking the Idaho state income tax deduction on my Federal return? Am I right in believing that I can't do both?

Answer 1

Actually, you're going to have to file two state returns this year, your Washington State return, as well as a non-resident Idaho State return because you're earning wages there. So, you need to claim your large purchase in the state that you reside since that's how the tax law works anyway.

Answer 2

you could no longer get carry of any credit for Idaho taxes paid. The credit for taxes paid to the state the place one works while one lives someplace else is (a million) in uncomplicated terms available if the two states have an earnings tax, and (2) no longer allowed to exceed the tax paid to a minimum of one's living house state on a similar earnings. because of the fact Washington state has no earnings tax, you do no longer qualify for the credit, and it could be $0.00, despite the fact that in case you probably did qualify.

Answer 3

You're correct, you cannot do both. Figure the deduction both ways and take the one that works out best for you.