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Originally Posted by surfingatwork
Hubby has accepted a job in VA (starts after the first of the year). We'd like to live in North Carolina but since neither of us has ever lived in one state and worked in another not sure how income tax is affected. How would this work? Does hubby pay income tax in VA but not in NC, vis versa or gasp both? Thanks in advance for any guidance.
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You need to file two returns; one for the state that you live(NC) and a non-resident return for the state that work in(VA). You should be able to claim a credit on your NC return for any taxes paid to VA.
Some state have a reciprocal agreement with neighboring states so you will only have to file a return in your resident state.
Of course, the usual disclaimer applies: This is not legal advice, please contact your attorney or CPA.