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Old 04-05-2014, 11:12 AM
 
Location: SC
8,795 posts, read 6,511,746 times
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Any tax scholars here? I have what I think is a simple question and would like to hear the opinions of those who practice or study constitutional/tax law, (Federal and State).

So, I live in state (A) which has law (A).
But I travel to state (B) that has law (B).

State laws (A) and (B) are in opposition to each other.

When I am in State (A), I follow the law of State (A).
When I am in State (B), I cannot follow the law of State (A), but must adhere to law (B).

When I am out of the country, no state has dominion over what I do - I am essentially a free agent.


So, if all of that premise is correct, then I have the following question?


If I am working in State (A), I owe taxes to State (A).
I pay home related taxes to State (A) because that is where my home is.

If I am working in State (B) and not using any services of State (A) what mechanism gives State (A) the right to tax my earnings in state (B)? Is it just that they started demanding it and people said OK, here it is?
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Old 04-05-2014, 11:43 AM
 
9,742 posts, read 9,752,809 times
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I'm curious. Do you live in California and work in a neighboring state? From what I understand, those who live in South Lake Tahoe, CA, and work in Stateline, NV, must pay income tax to CA. I don't know how CA gets away with this, if true. We have no income tax in NV, so maybe that creates a loophole.
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Old 04-05-2014, 11:52 AM
 
33,031 posts, read 24,052,850 times
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The feds tax ALL income of citizens, from all sources, foreign or domestic. I assume this same principle is what allows a state to tax the out-of-state income of its residents. California has a reputation for being aggressive in collecting taxes.
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Old 04-05-2014, 12:00 PM
 
8,391 posts, read 5,703,024 times
Reputation: 2314
Quote:
Originally Posted by blktoptrvl View Post
Any tax scholars here? I have what I think is a simple question and would like to hear the opinions of those who practice or study constitutional/tax law, (Federal and State).

So, I live in state (A) which has law (A).
But I travel to state (B) that has law (B).

State laws (A) and (B) are in opposition to each other.

When I am in State (A), I follow the law of State (A).
When I am in State (B), I cannot follow the law of State (A), but must adhere to law (B).

When I am out of the country, no state has dominion over what I do - I am essentially a free agent.


So, if all of that premise is correct, then I have the following question?


If I am working in State (A), I owe taxes to State (A).
I pay home related taxes to State (A) because that is where my home is.

If I am working in State (B) and not using any services of State (A) what mechanism gives State (A) the right to tax my earnings in state (B)? Is it just that they started demanding it and people said OK, here it is?
The reality is you are using resources in both states, but I think, at least this was the case when I lived in Indiana and worked in Illinois, you only pay income taxes to the state where you reside.

So basically I recall on my check both states would collect income taxes, but when I filed a state income tax return with the state of Illinois, I'd get all or nearly all of that money back.
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Old 04-05-2014, 12:17 PM
 
Location: SC
8,795 posts, read 6,511,746 times
Reputation: 12905
Quote:
Originally Posted by nvxplorer View Post
I'm curious. Do you live in California and work in a neighboring state? From what I understand, those who live in South Lake Tahoe, CA, and work in Stateline, NV, must pay income tax to CA. I don't know how CA gets away with this, if true. We have no income tax in NV, so maybe that creates a loophole.
No, but Generally, I work all over the country for six months to a year at a time and then return to South Carolina.
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Old 04-05-2014, 12:21 PM
 
9,742 posts, read 9,752,809 times
Reputation: 2051
Quote:
Originally Posted by blktoptrvl View Post
No, but Generally, I work all over the country for six months to a year at a time and then return to South Carolina.
Which states are taxing your income, and what are their residency requirements? That's where I'd look.
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Old 04-05-2014, 12:34 PM
 
Location: North Beach, MD on the Chesapeake
36,578 posts, read 47,214,842 times
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Quote:
Originally Posted by nvxplorer View Post
Which states are taxing your income, and what are their residency requirements? That's where I'd look.

Each state is different. When my oldest daughter went to college in PA her PA wages were subject to the PA State Income Tax while what she earned in MD was not. MD, on the other hand, taxed her on both her MD and PA wages until she established PA residency. Which the college did not recognize for tuition purposes.
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