Quote:
Originally Posted by MrRational
Not end of story; not even addressing the main issue..
You got the first half correct:
Almost all states that impose a personal income tax require that the tax be paid
on all income earned in the state, including income earned by non-residents.
But you missed the rest of the issue:
However, in order to relieve taxpayers of this double burden, many states have entered into state
tax reciprocal agreements. If two states have a reciprocal agreement and an individual lives in one
of those states and works in the other, the individual will only be subject to the income tax in the
state where he lives.
That sort of reciprocity exists between KY and five or six other nearby states.
Tennessee is NOT one of them. LINK
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Thanks. I think I understand.
So for example, a lot of people work in New York but live in New Jersey or Connecticut or Pennsylvania, for example, so it may be that those people pay state income tax only in New York, is what you are saying. (Although maybe New York is a bad example because I would be surprised that a big tax state would give up all that extra revenue

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