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I am curious, and I don't ave any states in mind, but if I work in one state, but live in another, how am I taxed? Say I live in Kentucky, but work in Ohio. Do I pay Ohio taxes from the job(income), and pay Ky taxes for house and sales? An I double taxed form work from both states? Does it depend on which 2 states or is it generic? Thanks.
If I recall correctly, you are typically taxed by the state you work in. However, you need to check with both states involved since there could be some differences.
For example, my husband worked in one state that did not assess state income taxes at all, but he was then required to pay state income to the one in which he lived. Of course, he also had some screwy self-employment stuff going on... I am currently working in one state (and paying state taxes here) but my permanent address remains in another. From my understanding thus far, I will not be paying state taxes there as well.
Thanks paramour. I am sure a lot of people do it, since so many larger cities are on borders. I guess if they were doulble taxes, it would not be so appealing.
Most, but not all, states a have a reciprocal income tax agreement with the states adjoining their borders. If the two states you live and work in have this agreement you pay state income to your state of residence as shown on your employement records.
If you are work in interstate commerce (ie trucker, railroader, etc) it doesn't matter about the reciprocal agreement, only your state of residence can tax you.
Each state has its own tax laws and it varies from state to state. My dh's company used to have an office in SC and we live in NC. If I remember correctly (our tax person took care of it) he had to pay taxes in both states, but he got credit in NC for what he paid in SC. It really wasn't enough to worry about.
I lived in the DC area for the past 7 years. There you pay taxes for the state you live in. For the first year I lived in VA and worked in VA.. I obviously paid VA state tax. THen I moved to DC, and worked in VA, and I still paid VA state taxes (and NOT DC taxes).
MY boyfriend lived in DC and worked in MD, and he paid DC taxes.
Yes, I did the same thing in DC-VA-MD and in NY-CT and the same thing now when I work back forth between CA and TN. Check your state laws to be sure, but you usually pay taxes to your state of legal residence.
Many individuals here in MA live in NH, and pay MA taxes (NH does not have state taxes). When they do their taxes is when they get reimbursed, at least part of it.
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