What gives Virginia and Maryland a right to tax outside income (public school, property taxes)

[dkf747]

Please provide a cite (link) to the DC tax code that says what you are saying is right.

Here it says:

What if I live in DC and work in Maryland or Virginia?
If you lived in the District of Columbia, you are required to file a DC tax return. However, your employer may not be required to withhold DC taxes.

[rlchurch]

Originally Posted by tech2enable

Actually, I am not wrong, you are liable for tax where you work, however D.C has no income tax on non-residents, but people in DC working in VA/MD have to pay tax, now of course they have double taxation agreements because MD and VA residents just want to pay one tax but that would mean that they initially had the right to tax non-residents.

I wonder what gives them that right to take outside income.

Are you Orly Taitz?

I've live in MD and worked in MD, I've lived in DC and worked in MD, and I've lived in DC and worked in DC. In this area by agreement among the states and the District (i.e. Congress), you pay taxes based upon where you live not where you work.

If you work in NYC you pay taxes in NYC, regardless of where you live.

[14thandYou]

Originally Posted by rlchurch

In this area by agreement among the states and the District (i.e. Congress), you pay taxes based upon where you live not where you work.

This is true. When I lived and worked in Maryland, my taxes went to Maryland. When I moved to DC but kept working in Maryland, my taxes went to DC. People who live in Maryland or Virginia yet work in DC see their taxes go to the state in which they reside.

I'm not certain where the confusion on this issue is stemming from.

[Stephen 81]

Originally Posted by 14thandYou

This is true. When I lived and worked in Maryland, my taxes went to Maryland. When I moved to DC but kept working in Maryland, my taxes went to DC. People who live in Maryland or Virginia yet work in DC see their taxes go to the state in which they reside.

I'm not certain where the confusion on this issue is stemming from.

Maybe the OP is upset that DC is unable to levy a commuter tax. It would certainly help the city's budget and fix some of what ails DC, but I think that may be a different issue from the one the OP has. Plus I don't think Congress would ever let that pass.

[robbobobbo]

To re-iterate others, because it appears the OP is having a hard time understanding between the concepts of DC getting taxes from non-residents, and DC getting taxes from its own residents working outside the District:

I lived in VA, worked in MD -> paid VA taxes.
I lived in DC, worked in MD -> paid DC taxes.
I lived in VA, worked in DC -> paid VA taxes.

Neither VA nor MD get tax revenues from DC residents who work in their states.

DC does not get tax revenues from VA and MD residents working in DC.

Hope this clears it up. I fail to see any unfairness.

[TheseGoTo11]

if you work in DC, your employer's landlord is likely paying high property taxes to the District

if DC ever enacted a commuter tax, I'd start investing in Rosslyn office buildings

[rlchurch]

Originally Posted by robbobobbo

To re-iterate others, because it appears the OP is having a hard time understanding between the concepts of DC getting taxes from non-residents, and DC getting taxes from its own residents working outside the District:

I lived in VA, worked in MD -> paid VA taxes.
I lived in DC, worked in MD -> paid DC taxes.
I lived in VA, worked in DC -> paid VA taxes.

Neither VA nor MD get tax revenues from DC residents who work in their states.

DC does not get tax revenues from VA and MD residents working in DC.

Hope this clears it up. I fail to see any unfairness.

The "unfairness" is that in virtually all other jurisdictions you pay taxes where the income is earned. On a relative basis more high end wage earners work in the District, DC does not get the tax revenue that a New York, Chicago, etc. city gets.

Interesting aside is that, unless things have changed, professional athletes pay income taxes in every state in which they play a game. Full employment for tax accountants.

[rlchurch]

Originally Posted by TheseGoTo11

if you work in DC, your employer's landlord is likely paying high property taxes to the District

if DC ever enacted a commuter tax, I'd start investing in Rosslyn office buildings

LOL oh yeah the lobbyist will all flock to beautiful Rosslyn.

[FlyDrive100b]

Originally Posted by rlchurch

The "unfairness" is that in virtually all other jurisdictions you pay taxes where the income is earned. On a relative basis more high end wage earners work in the District, DC does not get the tax revenue that a New York, Chicago, etc. city gets.

Interesting aside is that, unless things have changed, professional athletes pay income taxes in every state in which they play a game. Full employment for tax accountants.

That is true, but new york city had its commuter tax abolished even though state income tax is there although it doesn't go to the city and nyc loses out.

[FlyDrive100b]

Originally Posted by robbobobbo

To re-iterate others, because it appears the OP is having a hard time understanding between the concepts of DC getting taxes from non-residents, and DC getting taxes from its own residents working outside the District:

I lived in VA, worked in MD -> paid VA taxes
I lived in DC, worked in MD -> paid DC taxes.
I lived in VA, worked in DC -> paid VA taxes.

Neither VA nor MD get tax revenues from DC residents who work in their states.

We are talking about non-resident taxes, you are liable for non-resident taxes but VA/MD credit each others, in contrast D.C levys no tax. Its a deliberate attempt to VA/MD.

If you live in VA and work in Tennessee you pay VA tax, but not the other way around as well.

DC does not get tax revenues from VA and MD residents working in DC.

Yes, but the unfairness relies on a joint deliberate attempt by MD/VA in that they have double taxation agreements, because they know its residents have to pay income taxes and can be liable for non-resident income taxes vice versa, in contrast residents who work in D.C don't pay tax not because of a double taxation agreement but because there is no D.C commuter tax, and MD/VA take advantage of that and milk the cows up to a couple billion a year.

Hope this clears it up. I fail to see any unfairness.

Hope this clears up and people see the unfairness, its a bit confusing, and I the question still lingers about the right for a state to tax outside income.