I've asked everyone I know, including the person who does payroll at work, and no one can tell me. I live in Tennessee, but work in Kentucky. Which state do I file taxes in? To make things more complicated, we've only lived here for a few months. Due to my husband's military status, I'm still considered a legal resident of North Carolina. My voter registration, car registration, and drivers' license are all there. And just in case you need more to think about, Tennessee doesn't even HAVE a state income tax. How does that play into the whole situation?
Thanks for your answers!
2007-12-19 09:14:11 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I have asked my accountant friend who lives in Clarksville, TN and works for Fort Campbell, KY. He files in neither state.
Tennessee has an intangibles tax that comes into play only after crossing a certain max which he says is fairly high.
2007-12-20 03:23:32 · answer #1 · answered by Alan K 5 · 1⤊ 0⤋
Your husband's Home of Record is protected under the Soldiers' and Sailors' Civil Relief Act, however YOURS is NOT. He MUST file a NC state return. Neither TN nor KY can tax his military pay.
While the state where you are stationed might allow you to continue to maintain your state drivers license and tags (not all do so if the vehicle is in the dependents' name) they will give you no such bye on state income taxes. TN has no income tax on earned income but does have one on dividends and interest. Kentucky does have an income tax and WILL tax your KY sourced income.
If you insist on maintaining NC residency -- and again this may not be possible since you are NOT protected under the SSCRA -- you would file a resident return in NC (jointly with your husband) and a non-resident return in KY. You'll have to read the KY rules on filing status though most likely it will be a separate return. You'll get a credit on your NC return for the KY taxes paid, up to the amount of NC tax that would have applied on that income.
2007-12-19 12:07:51 · answer #2 · answered by Bostonian In MO 7 · 2⤊ 0⤋
You will file a KY State return as a nonresident and pay their state taxes. Then you will do your North Carolina and complete a NC CR (Credit paid to other states) form and NC will give you some much credit (based from KY taxes) off their tax liability. Here is the order that you will complete your returns: (1) Federa (2) KY and (3) NC. North Carolina will probably want a copy of the KY State tax return. Tennessee has nothing to do with it.
2007-12-19 14:59:15 · answer #3 · answered by Gary 5 · 1⤊ 0⤋
There is a small possibility that Kentucky and the State of Tennessee have a reciprocal agreement concerning the taxation of income earned by a non-resident, whereby, you would not be subject to taxation by the State of Kentucky.
However, to be on the safe side, I would suggest that you contact the State of Kentucky's Department of Revenue. It is my understanding, that as a general rule, you pay income taxes to the state in which you earned the income, i. e., the state in which you were physically located in when the income was earned.
2007-12-19 09:42:13 · answer #4 · answered by RUSerious 7 · 1⤊ 1⤋
Kentucky will expect a NR tax return from you to report your Kentucky-source income. The fact that you live in Tennessee and TN has no income tax is a non-issue.
Your HUSBAND needs to file in NC since he is still a legal resident there.
(Have him ask at work, the military is real good at this stuff.)
2007-12-19 09:27:03 · answer #5 · answered by Anonymous · 3⤊ 1⤋
All out of your state income is subject to the tax rates for that particular state.
2007-12-19 09:20:15 · answer #6 · answered by Anonymous · 1⤊ 0⤋
you need to hunt for the taxing authority for each state on line and seem for a "Who has to record", "submitting standards" or "FAQ" link. Adam's answer is actual. She might ought to record as a factor 12 months resident in each and each state.
2016-11-23 15:51:09 · answer #7 · answered by barby 3 · 0⤊ 0⤋