State Income Tax: Living in One State, Working in Another

State Income Tax: Living in One State, Working in Another

How to file state taxes when you live and work in different states

Most people in the U.S. live and work in the same state, which makes state taxes pretty easy to understand – you pay taxes to that same state where you live and work.

But what if you live in one state and work in another? Do you pay taxes to the state where you live or the state where you make your money?

That answer is that you need to pay taxes to both. Most likely you will end up having to file a resident return in the state where you live and a nonresident return in the state where you work.

Resident return

Generally you need to file a resident return in the state where you are a permanent resident. This state has the right to tax ALL of your income, wherever it was earned.

Nonresident return

After you file your resident return in your home state, you then need to go about filing a nonresident return in every other state where you earned money. A nonresident return only taxes you on the money you earned in that state.

Let’s take a real-world example. What often happens is that you withhold some income for each state tax. Let’s say you live in New Jersey and every day you commute to your job in New York. In this case you would need to file a resident return in NJ (on all of your income) and a nonresident return in NY (only on the income you earned in NY).

Don’t worry about being double taxed. You will have an opportunity to claim a credit for taxes paid to the other state. They will then divide whatever has been withheld between them and at the end the state whose liability was not exactly met will either give you a refund or a tax bill.

States without an income tax

The exception to all this are the seven states without an income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. In addition Tennessee and New Hampshire tax only interest and dividends.

If you live in one of these states, you don’t need to file a resident return (unless you live in TN or NH and have interest and dividends income). But if you work in a state that does have an income tax you have to file a nonresident return in that state.

The same holds true when the situation is reversed. If you live in a state with an income tax, you must file a resident return there. But if you work in a state without an income tax, you don’t have to worry about filing a nonresident return.

If it sounds complex, there’s a reason for that: it is. For this to work, every state needs to make agreements with every other state covering the income they could both theoretically tax. These agreements are structured to generate a minimum amount of paperwork and special cases: instead of having some workers who lives in a state but doesn’t pay taxes, the states have someone who lives in the state and pays taxes like everyone else — but gets a special tax credit at the end of the year.

In a situation like this, it’s often best to talk to your payroll department about how to proceed. In places with many out-of-state commuters (like New York, New Jersey, and Connecticut, as well as cities near state borders), they will have the details on how each state treats out-of-state income.

Even if you have to file multiple state tax returns you can take care of them right here on RapidTax.

Photo via Michael Gil on Flickr.

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This entry was posted on Monday, June 15th, 2009 at 10:52 pm and is filed under Tax Tips.

855 Responses to “State Income Tax: Living in One State, Working in Another”

  1. Do you have a spam problem on this blog; I also am a blogger, and I was curious about your situation; many of us have developed some nice practices and we are looking to swap techniques with other folks, be sure to shoot me an e-mail if interested.

    • Tax Advisor says:

      Hi Zilvinas,
      We use the Akismet plugin for spam filtering, which takes care of the vast majority of spam comments we receive. The ones left over are very easy to manually sort out.

  2. anna says:

    I’m not sure that I agree 100% with your post, but I did find it interesting.

  3. Sheryl says:

    What if you live in a state that has no income tax and work in a state that does? Are you taxed where you work or where you live?

  4. Richard says:

    I work in Wyoming and live in Idaho. What should I withhold from my taxes fro Wyoming? What should I withhold for Idaho?

    • Tax Advisor says:

      Hi Richard,

      Lucky for you, Wyoming has no income tax. So you don’t need to worry about witholding any Wyoming state tax. Idaho, however, does have an income tax and Idaho residents are taxed on all income, including that earned out of the state. So you do need to make sure that your Idaho state income tax is being witheld from your paycheck. And of course, don’t forget about federal taxes too!

  5. Mike says:

    OK. So here is my situation. I am working in Alaska, live in Colorado and my company is based in Louisianna. They are taking louisian state taxes out. What is the right situation? What state should my taxes be taken out for? I am guessig NOT Louisianna.

    • Tax Advisor says:

      Hi Mike,

      You will always be taxed in the the states in which you live and work, so you should be taxed in Alaska and Colorado (though lucky for you, Alaska has no personal income tax). You should not, however, be taxed in Louisiana if your company is based there but you don’t work there. But if you own the company, it’s an entirely different tax situation altogether and you could very well be taxed in Louisiana.

  6. Dave says:

    I currently work in New Jersey and have an opportunity to live in New York but am concerned about the tax implications of this. Am I going to end up paying more taxes if I live in New York and work in New Jersey. Should I just look for a place in New Jersey and live in the same state I work in?

    • Tax Advisor says:

      Hi Dave,

      Living in New Jersey might make your tax situation a little simpler, but it probably won’t save you money. It’s true that when you file, you’ll be taxed in both New York and New Jersey. But you’ll be able to claim the taxes you pay in the other state.

  7. Haley says:

    I currently live in Oregon and work in California. Do I need to change my withholdings to Oregon or keep them California or both?

    • Tax Advisor says:

      Hi Haley,

      You will actually be taxed in both Oregon and California. The good news is when you file you should be able to claim the taxes you pay in the other state, which should prevent you from paying much more in taxes than someone who just lives in one state.

  8. Stephanie says:

    I live in Arizona i work from home and work for a company in New York how do i file my state income tax ? do i have to pay in two both states ?

    • Tax Advisor says:

      Hi Stephanie,

      Don’t worry, you don’t have to pay New York state taxes. You are considered to live and work in Arizona. Therefore, you only need to file Arizona state taxes.

  9. Sheryl says:

    I live in NV (no income tax state) and work in AZ. Do I file a non-resident AZ tax form and claim a credit and refund for the taxes I have paid to AZ?

  10. Chris says:

    Tax Advisor,

    I found some great information on this site – great job! I’m wondering if you could provide some clarification for my situation.

    I will be starting a new job soon that will require me to travel and work in different states (similar to a consultant).

    The company is based in California, I live in Massachusetts, and will be working in California, Illinois, and Wisconsin. To make it more complicated, I will be relocating to Florida (no state income tax) at the end of June or beginning of July (2012).

    My questions are:
    1) would I fill out a W4 in every working state and my home state (MA)?
    2) during the 2013 tax season, would I need to file state taxes in all four states?
    3) even though there may be a tax credit in MA (I believe they do) at the end of the year to recover the “double tax,” is there a way to avoid some of this “double tax” during the year? This causes a personal budget nightmare and would like to minimize this “double tax” throughout the year rather than recovering this amount through a credit at the end of the year. Is this even possible?
    4) once I move to Florida, would I recieve a credit for paying taxes while living in a state that does not have state income taxes? Or no because I’m still liable of paying taxes where my income was earned?

    Thanks for the help!

    • Tax Advisor says:

      Hi Chris,

      Okay, first question: a W-4 is a form that you fill out for every employer, not every state. You should have one W-4 for all the work you do with this company.

      Second: Yes, you probably will have to file taxes in all four states. You will definitely need to file taxes as a resident in MA. But if you’re moving to FL, you will probably need to file as a part-year resident. In all likelihood you will need to file as a nonresident in the three other states as well. Most states have a gross income threshold below which you don’t need to file, but they tend to be pretty low bars.

      Third: the only way to prevent “double taxation” is to claim the taxes you pay as a nonresident on your resident state’s return.

      Fourth: Even though FL does not have an income tax, you still have to pay income tax in the states where your money was earned. You’ll probably get some of it back, but not all of it.

  11. Iris says:

    My friend’s daughter just moved to California right at the end of 2011 for a new job. She earned just a little more than $200 in CA before the year ended. The rest of her income is from Arizona, and she considers herself an Arizona resident.

    No taxes were taken out of her CA earnings, since it was such a small amount. They did take out SS & Medicare.

    Does she have to file a CA state return in addition to the AZ return? Or does she claim the CA money on her AZ state tax return?

    Any help is appreciated!

    • Tax Advisor says:

      Hi Iris,

      Technically, yes, she does have to file a nonresident California tax return as well as her normal Arizona return. When she files her Arizona return she should still claim the taxes she paid in California.

  12. Rose says:

    Hi!
    My husband and I live in LA. He worked in NC for about a month last year. He has two W-2s, one from each state. State taxes were taken out in NC, so would he also have to file state taxes for NC? I do our taxes, and am not sure how to handle this. Thanks for any help you can give me!

    • Tax Advisor says:

      Hi Rose!

      Yep, your husband has to file taxes in North Carolina. File California taxes as a Resident, and then file as a Nonresident in North Carolina. Normally you have to file a return for every state in which you live and every state in which you earn money. Just be sure to claim the taxes you pay in the other state, so you don’t get double taxed.

  13. David Cohen says:

    Hi!

    I live in NYC during the week but work in NJ but my main residence is in Florida where I’m at on the weekends. How does that scenario play-out? Luckily, Florida doesn’t have a state tax but I feel I’m going to get screwed one way or the other.

    Thanks,
    David

    • Tax Advisor says:

      Hi David,

      You have to file taxes in Florida as a Resident because you live there, and you have to file taxes in New Jersey as a Nonresident because you earn money there. Unless you earn money in New York as well, I don’t think there’s any reason to file a New York return, based on what you’ve said. Be sure to claim the taxes you paid NJ on your FL return so you aren’t double taxed.

  14. Hilary says:

    Hi,

    I am a legal resident of Colorado, but I have lived and worked as a nurse in Arizona since September. I did not make any money in the state of Colorado at all in 2011 so all of my income came from Arizona. I did not ever change my residency (my driver’s license and nursing license are both from Colorado), so I am afraid this may be a problem now at tax time! Do I only file in Arizona or do I have to file in Colorado, too, even though I have no income there? I never owned a house or anything in Colorado, I just went to school, so I didn’t make any money.

    Thanks,

    Hilary

    • Tax Advisor says:

      Hi Hilary,

      This depends whether your move was permanent or not. If it was permanent, then you’ll need to file a part-year return in both Colorado and Arizona. If your move was temporary you’ll have to file as a Colorado resident and an Arizona nonresident. FYI, if your move was permanent, I would take steps to switch your residency to Arizona so you can prove your move was permanent. Otherwise, Colorado could try to claim full resident taxes.

  15. Alisa says:

    Hi, for the first 2 weeks of 2011 I was living in Virginia, working in DC for a company via a temp agency. The agency is the one who sent my paychecks, with VA state taxes deducted (no DC taxes), and the company’s address is a Georgia address (according to my paychecks). Then I worked in VA for a different company for a few months. In June 2011, I moved to NC and began working there.
    Now, when I file my returns, obviously I need to file in Virginia as well as North Carolina, but do I need to file in DC too?? Georgia??

    Thanks so much,

    Alisa

    • Tax Advisor says:

      Hi Alisa,

      You are correct that you definitely need to file in Virginia and North Carolina. Normally, you would have to file for the state you worked in, but according to the District of Columbia’s website, it does not sound like you have to file for simply working there. Also, you do not need to file Georgia taxes because you did not earn money in Georgia. Merely working for a Georgia company does not require you to file. Also, I would list the address of the temp agency, not the company, as the temp agency was your actual employer.

  16. Alisa says:

    Hello again, I also meant to ask, when entering “Employer Address” for the temp agency, should I list the Georgia address that’s on my W2, or the address of the company where I actually worked in DC?? Thanks again!

  17. michele says:

    I live in Tennessee (no state income tax) and worked part of last year on a project in Alabama. Although there is state income tax taken out for Alabama by my company, I expected to get it all back when I filed my taxes because I’m a non-resident. I took my taxes to be done at HR Block and they said that I’ll get some back (about $700) on almost $2300 paid in (on about 54k earned during the time in AL). Does that sound right to you? I was expecting to get the full $2300 back. Thanks!

    • Tax Advisor says:

      Hi Michele,

      H&R is right, you won’t get all of your Alabama tax back. Living in a state that doesn’t have an income tax does not mean that you are exempt from tax when you work in a state that does have an income tax. It’s impossible for me to know if the $700 you got back is the correct amount, but I can tell you you won’t see all $2,300.

  18. Edith says:

    I am a resident of Florida but work in Michigan. I’ve battled the state of Michigan for 2 years in order to receive 100% of the Michigan State taxes my employer withheld. Finally, I have my refunds. However, I don’t want to keep doing this over and over (having to prove I am a resident of Florida, which has no income tax and thus I don’t have to file state income taxes). What can I do so that my employer will stop withholding Michigan State taxes? It amounts to $4,000 every year. No small change. Thanks.

    • Tax Advisor says:

      Hi Edith,

      It’s actually not true that living in a state without an income tax exempts you from paying income tax when you work in a state that does have one. You do owe Michigan taxes. You’ll probably get some of it back, but not all. If you’ve somehow managed to get 100% of your tax back from Michigan, good for you, but there’s nothing I can tell you to stop having Michigan taxes withheld.

  19. Christina says:

    If i live in WV and If have a w-2 that shows that they took out WV state taxes although the Company was in MD and i worked in MD am i still required to file a non resident form for MD?

    • Tax Advisor says:

      Hi Christina,

      Yes, you need to file taxes as a resident in West Virginia – regardless of whether you earned any income there – and file taxes as a nonresident in Maryland, because you earned income there.

  20. Ellen says:

    I just moved from MA and bought a house in FL. This will be my primary residence, but I wiillI work remotely for the same company in MA. Can I ask them to stop taking the state taxes out of my check as of now? I don’t want to have to fight to get it back if MA should not have it to begin with.

    • Tax Advisor says:

      Hi Ellen,

      Yes, you should be able to adjust your withholding and have them stop taking MA taxes out of your paycheck, since you are no longer earning income in the state. But be aware that you will still have to file a part-year resident tax return in MA and they will tax their portion of all your income.

  21. Juan Guzman says:

    I love in California . Working in Oklahoma . How do o file??

  22. David says:

    I live in Illinois and was sent on an assignment to Houston texas for about 11 months, during which I was not deducted Illinios State Tax. I know that texas does not have a State Tax but Illinois does. Should I pay Illinois tax while filling the Tax Returns as I am a resident of Illinois?

  23. Mike T says:

    Hi Advisor,

    I live in Chicago IL, worked for a consulting company with projects in NY. I received a W2 with 2 pages: 1 page with my fed and state info showing IL income (equal to total fed income) and IL tax; the 2nd page with same info for fed but NY income (same as in IL income) and a NY state income tax. I am concerned that this will show 100% working in Il and 100% working in NY at the same time. If I enter this as 2 separate W2, would that double my fed income? If I enter as a second entry for box 15-17 on my return W2, wouldn’t the state income for each state be incorrect and over-stated? Should I proportion the income and adjust the W2′s?

    • Tax Advisor says:

      Hi Mike,

      From what you’ve described, this does not sound like two separate W-2s. If it’s one form from one employer then do not enter it as two separate forms. This would indeed double your income and would be very bad for your tax liability. As for the state tax situation, did you earn any income in Illinois? If not, then your income in each state should be the same. Since you live in IL, you will have to file as an IL resident. In your resident state, you are taxed on all income, regardless of what state you earned it in. In NY you will file as a nonresident and you will only be taxed on the income you earned in NY. If all your income was earned in NY, however, then both IL and NY will appear to be taxing the same amount of income and it may seem like you are being “double taxed.” Don’t worry. When filing state returns you can claim the amount of tax you pay to other states and the tax you owe that state will be adjusted accordingly.

  24. Don says:

    Hi Advisor –
    I work in a tax free state – New Hampshire. (lived there as well)
    I bought a secondary residence in New York State in 2011.
    This past month I have changed legal residency to NYS but I’m still working in NH and have a residence there.
    My employer has started to take out NYS income tax from my paycheck.

    Are New York State residents taxed on all income, including that earned out of the state?

    • Tax Advisor says:

      Hi Don,

      All states with an income tax tax their residents on all of their income regardless of where it was earned, not just New York. Only nonresidents are taxed on the income they earn in that particular state.

  25. Mike T says:

    Thank you… This is one form. I entered the 2 state as 2 entries but somehow the IL state rejected my e-filing. It is very strange.

  26. Nick Gosar says:

    I live in Texas. I just accepted a job, where I will work 2 weeks a month in Phoenix and 2 weeks at home in Texas. Texas has no income tax. Do I file Arizona tax as non-resident? Do I pay tax in Arizona ONLY for the time I work in Arizona (for example for next 10 month 2 weeks in Phoenix)? or in other words pay Arizona tax for only time I am in Arizona.

    Thanks in advance.

    • Tax Advisor says:

      Hi Nick,

      Yes, you will need to file taxes as a nonresident in Arizona. You will need to pay taxes on all of the income you earn in Arizona – it has nothing to do with the amount of time you spend in the state. But of course, since you just accepted the job, you won’t have to worry about it until next year when you prepare your 2012 taxes.

  27. Darlene says:

    Hi.. I have a new employee who is working in Louisiana and he lives in Florida, he will stay in an apt while he is working here but he does live in florida.. How should his SUI and State tax be set up in payroll… Thanks!!

    • Tax Advisor says:

      Hi Darlene,

      Normally, a taxpayer is taxed by his resident state for all of his income and by a nonresident state on only the income he makes in that state. In your employee’s particular case, however, he does not need to be taxed in his resident state because Florida does not have an income tax. Therefore he only needs to pay Louisiana taxes on the income he makes in Louisiana. I’m not sure about the SUI, you’ll have to check with Louisiana’s tax authority.

  28. theresa dove says:

    I live in Maryland and work in Delaware. Delaware taxes were taken from my pay. When doing my taxes
    this year Md states that I owe over $250 interest for for underpayment. I am totally current on all taxes.
    They must be referring to 2011 taxes only.

    Please advise.

    • Tax Advisor says:

      Hi Theresa,

      The deadline for filing 2011 Maryland taxes is April 17, 2012. This means that even if your withholding in 2011 fell short of what you owe, you have until then to pay the full amount. So you are not being charged interest for 2011 taxes. My guess would be that you did not pay your full tax liability for a prior year (in this case most likely 2010) and are now being charged interest. Look back over your taxes from the last ten years to see if there is a year you failed to pay in full. If you can’t find anything, give the Maryland state tax authority a call. It could very well be an oversight on their part.

  29. Jeff says:

    I’m looking at taking a job in Florida but working remotely from Missouri, where I currently live and work.. I know Florida does not have an individual income tax. Would this have any impact on my Missouri state return if my paycheck would originate in Florida?

    • Tax Advisor says:

      Hi Jeff,

      You only pay state taxes in the state that you live in and the states in which you earn money. Even though your paycheck will originate in Florida, you will still be earning the money in Missouri. Therefore, you will still file as a Missouri resident exactly as before.

  30. susan says:

    I live in wisconsin and work for a client in wisconsin.I am not getting any pay from client. But my employer is in Illinois, get paied from them and my paycheck deducted for illinois tax. How should i file my tax now ? Can i file the tax papers alone in illinois as already deducted. ? Thanks

    • Tax Advisor says:

      Hi Susan,

      I would have to know more about your situation to say for sure, but it sounds like you shouldn’t be having any Illinois state tax withheld from your paychecks. You get taxed on all of your income in the state in which you live, in this case Wisconsin. Then in other states you get taxed only on the income you earn in that state. It doesn’t matter where your employer is located. You will definitely have to file as a resident of Wisconsin, but I would look into whether or not you have to file as a non-resident in Illinois too. It doesn’t sound like you should.

  31. Nick Gosar says:

    Hi Thanks in Advance. I have S-corp. In 2010 tax year, I had submitted expanse report by mistake twice, So my expanse for the year was over by about $2000. I discovered that mistake recently when preparing for 2011 taxes. The question is, can I return the eaxpanse amount back to s-corp this year, or I have to correct 2010 accounts and refile my 2010 1120s and then 1040?

  32. Pam says:

    Does an employer, who’s only business location is in Texas, has an employe whose lives in TX and works in TX for all but 6 weeks out of the year when they work in Ohio, have to without Ohio taxes and if so is it only State tax? What about SUI?

    • Tax Advisor says:

      Hi Pam,

      According to the Ohio Department of Taxation: “With rare exception, employers that do business in Ohio are responsible for withholding Ohio individual income tax from their employees’ pay.” Check out these guidelines for more information. You will also be responsible for Ohio unemployment tax. This page from the Ohio Department of Job and Family Services should give you more information.

  33. Question says:

    If a person lives in Delaware but works remotely for an employer in California, will he or she have to pay taxes in both states, since both have state income taxes ?? Also,how do wage garnishments work since the laws in the two states vary regarding the maximum amount that can be taken out of the wages ? Thanks.

    • Tax Advisor says:

      Hi Question,

      You only have to pay state taxes for the state in which you are a resident and any other states in which you earn income. So if you live in Delaware, and are physically in Delaware when you earn your money – regardless of where your employer is – you only have to pay Delaware state tax.

  34. Sup says:

    Hello,
    I live and work in California. However, in october 2010, I went to work in Penn State (Pennsylvania) for six months on a collaboration between my institute in California and Penn State University. While I was in Pennsylvania, I was getting paid from California. I have moved back to California in April 2011. I never received any W-2 from Penn State and the W-2 that I received from California has the entire state tax withheld in the state of California. How should I file my taxes? Can I just file for California? If I need to file Pennsylvania taxes, I don’t have any W-2 from Pennsylvania. Please advice.
    Many thanks.

    • Tax Advisor says:

      Hi Sup,

      If for the whole time you worked in Pennsylvania, the entire state tax was withheld in California, then you don’t need to file a Pennsylvania state tax return. Just to be clear, you should speak with your HR department.

  35. bill says:

    I work in Missouri. I travel to other states on an as needed basis. I can spend anywhere from one to 30 days in any state. It is possible to be in 20-30 states per year. Do I have to file for each state that I travel to? Should I get 1099′s for each state?

    • Tax Advisor says:

      Hi Bill,

      Unfortunately you do have to file in each of those states. You should check the website of each state’s tax authority and find out what the minimum income threshold is for filing taxes in that state. I imagine that in some of those states, you may not make enough money there to have to file. But in all the states in which you make more than the threshold, you will have to file a nonresident return. It does depend, however, on how you are getting paid. If you are an employee of one company and having all of your state taxes taken out for your home state, then you may not have to file these individual state taxes. Check with your HR department to make sure.

  36. Mary says:

    Hi,
    I live in NJ and just started a job in NYC. On my first paycheck both NY and NJ state income taxes are being taken out. Is that correct or should only NY be taken out and NJ filed at year end?
    Thanks

    • Tax Advisor says:

      Hi Mary,

      Yes, that is correct. Ultimately you’re going to have to pay state taxes for both New York and New Jersey, so it just makes your life easier to have both withheld now. If you have any more specific questions I would ask your HR department.

  37. Maria says:

    Hi, I’m currently living in MN and working online at a company based here in MN. I’m moving to WA and will be keeping my current job (since it’s all based online) but since WA doesn’t have a state income tax will I still need to pay MN state income taxes?

    • Tax Advisor says:

      Hi Maria,

      You will have to pay MN state taxes for the portion of the year that you lived and worked there, but once you move it doesn’t sound like you’ll have to pay MN taxes any longer. You only have to pay taxes in the states where you live or work. Where your employer is located is irrelevant.

  38. Jack says:

    I work in Ohio but also earned income from a business that I own in Florida. Since Florida does not have income tax, am I responsible to pay Ohio income tax on the amount I made from my business in Florida? I dont’ see anywhere on the Ohio tax forms to deduct that amount from my Federal AGI.

    • Tax Advisor says:

      Hi Jack,

      When you file your state taxes as a resident of the state you live in, you have to pay tax on all of your income, whether it was earned in that state or not. It’s only when filing as a nonresident in a state you don’t live in that you pay tax only on the income from that state. So if you live in Ohio, you will have to pay Ohio state tax on all of your income, from all states.

  39. Lee says:

    My company is looking at moving our office to Connecticut. I currently live in New York. Are there any tax benefits to moving the office to Connecticut, where the tax rate is lower?

    • Tax Advisor says:

      Hi Lee,

      You’re going to have to take a close look at corporate tax rates, and maybe property taxes, in the two states and how your business fits in to them to determine how beneficial it will be. As for personal income taxes, as long as you continue to live in New York, you will have to pay state tax on all your income, including that earned in Connecticut. You will also have to pay CT state tax on the income you earn in CT. You can claim your CT taxes on your NY return, so you won’t be double taxed, but I doubt any great tax benefit would result. If you decided to move to CT, however, and become a CT resident, then you would definitely benefit from the lower tax rate.

  40. Kerry says:

    Hi, i live in one state (new jersey) and work in another (new york). I made no salaried income in the state that I live in. However, for some of 2011 I was unemployed and recieving unemployement benefits. I had federal income taxes taken out for 2011 but no state taxes withheld. I know i need to file a new york non-resident return but do I still need to file a new jersey resident return if i dont owe any taxes to new jersey and didnt make any income there? And if i do need to file a new jersey return should both my inocome from my unemployment and new york be listed on it? Thanks in advance.

    • Tax Advisor says:

      Hi Kerry,

      You have to file a resident return in New Jersey for all of your income, whether it was earned in New Jersey or not. This is true of resident returns for all the states. Luckily, unemployment compensation is not subject to New Jersey gross income tax, so you don’t have to report it. When you do file in New Jersey, be sure to claim the taxes you pay to New York, that way you won’t be double taxed.

  41. Jack Childress says:

    I live in Florida (did not live in Ohio at all during 2011) and received wages from an Ohio company, but did no work at all in Ohio. The Company withheld Ohio and Local taxes. Am I entitled to that money back and how do I get it?

    • Tax Advisor says:

      Hi Jack,

      You are correct that you should not owe any Ohio state taxes, but unfortunately your employer has been incorrectly withholding taxes and as far as the state of Ohio is concerned, you do owe. The first thing to do is contact your employer. At the very least have them stop withholding taxes for 2012 and see if there’s any way for them to help fix the situation. Then you will need to file a nonresident return in Ohio (since the state thinks you did earn money there) but I would give the Ohio Department of Taxation a call and ask them if there’s anything you can do.

  42. Carlos rosales says:

    I live in FL and work as a consultant (translator)
    I have checks comming from many states where my clients have their business, all are 1099 misc. income.
    The question is do I have to file taxes in all the states where I get checks from?

    • Tax Advisor says:

      Hi Carlos,

      You have to pay state taxes in all the states where you earned money. So if you were physically in Florida while you earned that money, you don’t owe state tax on it, no matter where the checks are coming from.

  43. Matt says:

    I live in TX. I earned money from an oil royalty in TX. I only worked in PA in 2011 on a pipeline. I do not pay state taxes in TX but I do in PA (which I understand). But why would I pay PA taxes on the oil royalties money from TX? I did not have taxes witheld from that oil royalty. But, I did see that some money was deducted from my federal taxes one I input that 1099 MISC from the oil royalty.

    • Tax Advisor says:

      Hi Matt,

      You should not be paying PA taxes on any income other than that which you earned in PA. Does it say on your 1099-MISC that PA taxes were withheld? If not, they probably weren’t. If you filed with RapidTax, you can call 877-289-7580 to follow up with a customer service agent.

  44. Jae says:

    Hi, I had a pa license but began working in fl in April 2011. I then got a fl license in August but my w2 still listed my pa address. Do I need to file taxes in pa?

    • Tax Advisor says:

      Hi Jae,

      How you have to file depends on where your official state of residency was. If you switched residency during the year from Pennsylvania to Florida, you will have to file a part-year resident return in PA, but if you remained a PA resident for the whole year, you will have to file a PA resident return.

  45. Melanie says:

    I reside in New York state but work for a company that is in Pennsylvania. My employer is only witholding PA state tax and nothing for NY. My employer is also witholding for PA unemployment, somehow that doesn’t seem right since I can not file for unemployment in the state of PA.

    • Tax Advisor says:

      Hi Melanie,

      Your employer is actually doing the right thing. You are correct that you will have to pay New York state taxes on all this money. You will have to file as a New York resident and as a Pennsylvania nonresident (assuming you’re physically working in Pennsylvania. It’s unclear from your post, but if you are working remotely from a location in NY, you shouldn’t owe anything in PA taxes). When you go to file your NY return, you’ll get credit for the taxes you’ve already paid (through withholding) to PA.

  46. AL says:

    I will be living in TX (20 days a month) and work in iowa 10 days a month,Tx as you know has no state income tax
    So would I still have to pay IA tax on the income I earn In IA even though I dont live or have a residence there(I stay in a hotel on my assignment)

  47. ken chappell says:

    hi i am from utah i got a j ob working in new york but i am staying in ct the company im working for are taking out ny taxes only. do i have to pay taxes in utah or ct. i just dont want to get in trouble thanks ken

    • Tax Advisor says:

      Hi Ken,

      You have to file taxes as a resident in the state where you live (the state in which you maintain your official residency) and as a nonresident in any state in which you earn money. If you have maintained your official residency in Utah, you have to pay Utah tax on all of your income, but not Connecticut tax (though CT treats as a resident anyone who maintained a permanent residence in the state for the entire year and spent more than 183 days there). If you officially moved, you will have to file a part-year resident return in both states. As for New York, you will definitely have to file as a NY nonresident. Your employer is right to take out only NY taxes. When you file in your resident state, you will be able to claim the taxes you paid to NY through withholding so you won’t get double taxed.

  48. Kelvia says:

    Hello;

    I will be moving to Florida in Jan 2013- will still be working for my NY company from home, how do my taxes work? when I file do I file NY taxes?
    do I still file out of NY and will I still get a Federal and NY state check ? (I have three dependents) I’m clueless – thanks

    • Tax Advisor says:

      Hi Kelvia,

      You have to pay two types of state taxes a) resident taxes on all your income in the state where you’re an official resident and b) nonresident taxes in any other state on the money you earn in that state. In your case, everything depends on whether you are moving permanently to FL – whether you are becoming a FL resident, in other words. If that is the case, you won’t have to file state taxes at all. Since FL has no income tax and you are earning all your money there (regardless of where the company is based) you won’t owe state income taxes! Note: you may have to file a part-year return in New York, depending on how early in January you move and how much money you make there. If you are not changing your official residency to FL, then you will have to file a NY resident return and NY will tax all your income. So from a tax standpoint, it probably makes sense for you to become a FL resident.

  49. Robert says:

    I work in delaware and live in pennsylvania. My employer is deducting pennsylvania state tax only, but should I be paying deleware state tax too or is there some type of aggrement between pennsylvania and delaware in which I only have to pay state tax in the state I live in. Is this correct and how should I proceed so I am not oweing delaware tax at the end of the year? Thanks.

    • Tax Advisor says:

      Hi Robert,

      Yes, you will have to file a nonresident return in Delaware and pay taxes on the income that you earn in the state. However, it’s okay that your employer is only taking out Pennsylvania state taxes. When you go to file your returns next spring, you will be able to claim the taxes you paid to PA on your DE state return. This will ensure that you aren’t double taxed and will let the states work out among themselves which one gets how much.

  50. Chris says:

    I will be working in Georgia at the end of the year but we were looking for houses in Northern Florida. Like many have mentioned Florida has no state income tax. Will this benefit, hurt, or neither my taxes for this year?

    • Tax Advisor says:

      Hi Chris,

      It’s impossible to say exactly how this move would impact your tax situation, but as long as you are still working in Georgia, you will still have to pay taxes on all of your Georgia income. And if all of your income is earned in GA, and none in Florida, it will likely not provide a very large tax benefit.

  51. Max says:

    Hi,
    Currently, both my spouse and I are earning money and living in New York.
    I am on the verge to accept a new job in Houston.
    If I accept this job, I will earn my money and live in Texas (except the weekends):
    - Where should I pay my state income tax?
    - Should I become a Texas resident?
    - Should we file our Income Tax returns separatly?
    - What should I ask and specify to my new Texan employer?
    Thanks

    • Tax Advisor says:

      Hi Max,

      Where you pay state taxes will depend on where you’re a resident. If you remain a New York resident, you’ll have to pay NY state income tax on all of your income. Texas, however, has no income tax. So if you become a Texas resident, you will not have to file any state income tax at all (assuming that you earn 100% of your income in Texas. If you still earn any income in NY, you’ll have to pay NY taxes on that portion). In this respect, it may very well make sense for you to become a Texas resident. Transferring your residency to Texas would not necessarily be cause for filing separately from your spouse. Only a tax professional privy to the specifics of your situation could answer that. If you remain a resident of New York, you could ask your employer if they could deduct NY taxes.

  52. don says:

    Hi I live in Westchester NY but work in Connecticut. My job doesn’t take out for NY state tax only Connecticut. When I file next year will I be double taxed. Or are they required to take out for NY state tax.

    • Tax Advisor says:

      Hi Don,

      No, you won’t be double taxed. When you go to file your New York state tax return, you’ll be able to claim taxes already paid to Connecticut through withholding. What this means basically is that the state of CT will have to pay NY state some money. So it’s fine that your employer only takes out CT taxes.

  53. Joe says:

    Hi Don,

    I recently took a job in Missouri but live in Kansas. How much will my income will be taxed? Is there a way for me to figure that out? thanks.

    • Tax Advisor says:

      Hi Joe,

      You will be taxed as a resident in Kansas on all of your income. You will be taxed as a nonresident in Missouri only on the income that you earn there. You will be able to claim the taxes that you pay to the other state, however, so you won’t be double taxed. As far as how much exactly you will be taxed, it’s impossible to say until you actually go to do your taxes.

  54. Freddie says:

    Hello,

    I recently started a 3 month internship in California for the summer and I live in North Carolina. I will be returning back home once the internship is over and was wondering how my taxes will be handle when I go back home. North Carolina taxes are not being taken out of my pay but California taxes are. How will this be handled?

    • Tax Advisor says:

      Hi Freddie,

      Since you are probably still a North Carolina resident, you will have to file a NC resident return at the end of the year, which will tax you on all of your income, including what you earned in California. But you will also have to file a nonresident CA return which will tax you just on the income you earned in CA. Both state returns will allow you to claim the taxes that have already been withheld, to ensure that you are not double taxed. CA will probably end up having to send some of this money to NC.

  55. Justin says:

    Hi there –

    For the past two years I have worked and lived in Florida where there is no state income tax. The company I work for is a national company based in Illinois but had regional offices around the country – Florida being one of those. Now, I just took a new role on in the company where I will be working directly for the home office in Illinois, but I am still living in Florida 12 months a year…just visiting Illinois once a month for a couple of meetings. Will I now have to pay Illinois state income taxes even though my permanent residence is in a state without any state income tax? Thanks!

    • Tax Advisor says:

      Hi Justin,

      You have to pay state taxes for the state where you maintain your permanent residence and for every state in which you earn money. If you are both living and physically working in Florida, then you don’t have to file a state return (obviously, if FL had an income tax, you would have to file a FL return). It doesn’t matter where your company is located, it matters where you are physically doing the work, which in this case is FL. The only thing to look out for here is if IL is withholding state tax from your paychecks. If that is the case, you will have to file a return in order to get some of that money back.

  56. Kaila says:

    Good Afternoon,

    I still have permanent residency in Florida, which does not have state tax and recently started working in Michigan. Will I need to withhold state taxes for Michigan? Also, since I am not a resident of Michigan will I need to withhold City taxes? Thanks you!

    • Tax Advisor says:

      Hi Kaila,

      Yes, you will need to pay Michigan taxes as a nonresident. This means that Michigan will tax you on all the income you earn in Michigan. So it makes sense to have Michigan taxes withheld from your paycheck. As for city taxes, you’ll have to check with whatever city you’re working in.

  57. Pat says:

    Good morning,

    I live in New Jersey and work for a Carlifornia based company, am I going to be double taxed by both NJ and CA? Thank you!

    • Tax Advisor says:

      Hi Pat,

      You will definitely be taxed in New Jersey, but you should only be taxed in California if you are physically working there. If you are working remotely from NJ, you shouldn’t have to file a CA return. The only thing to watch out for here is to make sure no CA tax is being withheld from your paychecks. In this case you will have to file a CA return to get that money back.

  58. Phil says:

    Hey Guys, I will be working in ND on a drilling rig for 2 weeks at a time and staying on the rig location while I am working. I will be moving back to Mi from Wy in about a week. I’m assuming that I will be taxed both in Mi and ND since I will have no income in Mi from this job, and a 6 figure income in ND from it. Will I have to file a non resident return for ND at the end of this year? Thanks

    • Tax Advisor says:

      Hi Phil,

      First off, you have to file a return for every state of which you are a permanent resident. That means, if you are moving from Wyoming to Michigan, you will be a part-year resident of both Wyoming and Michigan. Wyoming has no income tax, so you don’t have to file there. But MI does. It doesn’t matter whether your income was actually earned in MI or not. If you change your permanent residency to MI, you will have to file a part-year resident return in MI that taxes you on all your income.

      Secondly, you have to file a nonresident return for every state in which you earn income. In this case that would be North Dakota. So yes, you most likely will have to file a nonresident ND return that taxes you only on the income you receive in ND.

  59. Aaron west says:

    Hi I live in Washington state and received a check while in new York. I will return to Washington in September and live at home until early June. What will the tax situation be like for me in April. Will I be taxed by both states. I know Washington doesn’t have a income tax. Thank you

    Aaron west.

    • Tax Advisor says:

      Hi Aaron,

      You are correct that Washington has no individual income tax. So you don’t need to worry about them. But you will need to pay tax in New York if you either live there as a permanent resident, or earn money there. It’s a little unclear from your description, but it sounds like you will in fact receive money while in NY. Most likely you will have to file taxes as a NY nonresident, which means you’ll pay tax only on the income you earn in NY.

  60. Vanessa says:

    Hi,

    I am responsible for payroll at my job. I just hired a guy who lives in Washington State (no individual income tax) and works in Virginia 1 week a month (sometimes for 2 weeks). Will he need to pay taxes in VA??

  61. Sam says:

    Hi, I live and work in NJ but my paycheck is running from NC. So how do i need to file tax for NJ and how to get back money from NC state.

    • Tax Advisor says:

      Hi Sam,

      You will need to file a return in New Jersey as a resident. On this return you will have to pay tax all of your income. You will also have to file a nonresident return in NC. Under normal circumstances you would not have to, but it sounds like tax has been withheld. In this case you will have to file as nonresident in order to get that tax back. You might try talking to your payroll department to see if there is a way for them not to withhold NC taxes or to withhold NJ taxes instead.

  62. Elly says:

    I am a permanent resident of California but I am working in Washington state for the summer. I provided my home California address to my employer before changing my address in their files to Washington, but for each paycheck I am still paying a California Withholding Tax. Should I be paying a california withholding tax? Will I get this money back when I file my tax returns, or what does this mean for when I file my tax returns? Thank you!

    • Tax Advisor says:

      Hi Elly,

      All of this depends on whether you intend to go back and live in California in the Fall after your work in Washington is over. If you will in fact go back to CA, and will remain a permanent CA resident, it is best for CA taxes to be withheld from your paycheck. This is because CA residents must file a resident return and pay taxes on all of their income, no matter what state it was earned in. If you don’t have that tax withheld from your paycheck now, you’ll just have to pay the state later. On the other hand, if you don’t intend to return to CA as a permanent resident, then you don’t need to withhold CA tax.

  63. Elly says:

    Also, just want to add that my friend who is a resident of California as well, has listed her Washington home address as her resident address and the address of the building in which we work as her work address, so a California withholding tax is not deducted from her paycheck. Is this acceptable? If I do this, will I still pay the California withholding taxes when I file my tax return?

  64. Deborah Williams says:

    I live in Texas (which has no state tax) but am employed by a company in New York. To complicate matters, my entire contract will be fulfilled in Africa. Do I pay state tax in any state?

    • Tax Advisor says:

      Hi Deborah,

      I don’t think you will end up owing any state tax. Even though your company is based there, you shouldn’t have to pay any New York state tax because a) you were not a NY resident and b) you did not physically earn your income in NY. Ordinarily, you might still owe taxes in your home state when you work abroad, but because Texas has no state income tax, you don’t owe anything there. Still, you might want to have a tax professional look at your individual situation to make sure.

  65. Lance Turbeville says:

    I have a friend that is a resident of Colorado, but her income comes from Wyoming, Is she required to report that income and do a Colorado Tax Return every year.

    • Tax Advisor says:

      Hi Lance,

      Yes, if she is a resident of Colorado, she must file a resident CO return in which she reports and pays tax on all of her income, wherever it was earned.

  66. jomical says:

    I am from Louisiana, but lived and worked in Houston, TX from May 2009-May 2011. I received a letter from the LA Dept. of Revenue stating that I filed Federal Income taxes, but not one for the state of LA for year 2010. Since I lived and worked the entire year in TX, without performing any work in LA, am I required to pay LA state income tax?

    Thank you

    • Tax Advisor says:

      Hi Jomical,

      Yes you are required to pay Louisiana state tax provided you remained a LA resident. In the state that you’re a resident of you always have to file a resident return and pay tax on all of your income, regardless of where it was earned.

  67. Ben says:

    I live in tx ( no state income tax) and recently received a signing bonus from a company in CO. They have already deducted CO state income tax from the signing bonus. I will be living the entire year in tx and will be starting this new job next year in CO. Do I actually owe CO income tax if I don’t live there this yr and if not is there a way to get a CO state refund ?

    • Tax Advisor says:

      Hi Ben,

      If they withheld Colorado taxes from your bonus that means you do have to file a nonresident CO return. You might get a refund for some of that tax withheld, it’s impossible to say.

  68. Jayne says:

    My son was a student (unemployed) until May 2010 and unemployed in Louisiana from Jan 1, 2010 until moving to Chicago on June 28, 2010 for a job (internship). After the internship he found another job in Chicago and stayed there. He is still living there. He filed and paid Illinois tax for 2010. He used my address in Louisiana on his 2010 Federal and Illinois income tax ( it says mailing address on the form)because of a problem with his mail at the apartment he lived at. I had mailed him an iphone and it was lost in the mail. He also didn’t receive a couple other important items such as his W2. Since he had a Louisiana address on the forms they want proof that he doesn’t have to pay Louisiana income tax. Since he lived in La. from 1/1/10 until 6/27/10 should he have filed with La? All income from that year and every year since has been in Illinois.

    • Tax Advisor says:

      Hi Jayne,

      Whether your son should have filed in LA or not depends on his residency. If after six months he changed his official residency from LA to IL, then he would be considered a part-year resident of each state, and in LA part-year residents only have to file a return if they had LA source income. Since your son had none, he wouldn’t have to file a return in this case. However if your son maintained his permanent residency in LA for the rest of the year even after he moved to IL (and using an LA mailing address even into 2011 is pretty good evidence that he remained a permanent LA resident for the rest of 2010) he would have to file a LA return and pay tax on all of his income, no matter which state he earned it in. So your son has two choices: 1) He can file a return in LA, or 2) he can attempt to prove that he changed his permanent residency to IL in June (this would involve proving that he did things like registered his car in IL, got an IL driver’s license, registered to vote in IL, etc.)

  69. Jayne says:

    Thanks for the info. He didn’t have a car there and put off getting a Illinois driver’s license until the end of last year. He did sign an apartment lease which went from June 28, 2010 until April 2012. I don’t think he registered to vote until recently. Would he have to pay both La and Illinois tax? He paid Illinois what he owed. Would La just get some of what he paid Illinois. Like I said his only employment was in Illinois. I don’t know how the government expects people to know all of this. I tried looking it up on the La website and it’s hard to find. He just figured if he only worked in Illinois then he just owed Illinois.

  70. Renee says:

    I lived and worked for a NJ company, recently my company allowed me to relocate and work remotely from Maine. I needed to help my parents with medical issues. I have to return to NJ every six weeks for 1 week. This has been going on for 3 months and may continue for the rest of the year. My paycheck still has my old NJ address and they are taking NJ taxes no Maine taxes. Where do I file taxes. I have moved my mailing address to Maine but still have financial ties in NJ.

    • Tax Advisor says:

      Hi Renee,

      Have you changed your permanent residency to Maine? If this is the case, it sounds like you will have to file a part-year resident return in both NJ and ME. If this is not the case, and you are still a permanent resident of NJ, you will have to file a resident return in NJ and pay tax on all of your income no matter what state it was earned in. In this case you will also have to file a ME nonresident return and pay tax on the income you earned while in ME. Don’t worry about your withholding. When you file taxes you will be able to claim the taxes that have already been withheld by one state so you won’t be double taxed.

  71. David I. says:

    I am a NC resident who just accepted a job in SC. I understand the end-of-year filings, but how will my paycheck be effected? Will I have both NC and SC taxes witheld from each paycheck?

  72. Tom E says:

    Been working at a California based company ‘s satelite office in Connecticut. The office has been moved to a location in New York state (not the city). I happen to also live in New York state. Noticed on my recent paystub that Conn. State Tax is still being withdrawn and not New York state. Shouldnt New York State tax be taken out rather than Connecticut?

    • Tax Advisor says:

      Hi Tom,

      Yes, this looks like an oversight. If you’re both living and working in NY (and doing neither in CT) then there’s no reason for CT taxes to continue to be withheld. I would talk to whoever’s in charge of payroll at your office, it was probably an oversight.

  73. Lacey says:

    i love in washington and am looking at a job in oregon that would pay about $13/hr,, About how much would i take home after taxes are taken out? im trying to figuring out if itll be worth it to take the job.

    • Tax Advisor says:

      Hi Lacey,

      It’s impossible for me to say how much will be taken out for taxes because I don’t have enough details about your life and financial situation. But the IRS has a nifty withholding calculator that can help you figure it out. And keep in mind that though Washington has no state income tax, Oregon does. So at the end of the year you will have to file a nonresident return in Oregon on all of the income that you earned there.

  74. Christie says:

    My husband just started a job in FL and is living with his parents until we sell our house in NY. He is applying to change his NYS drivers license to Florida on Friday. He also does a consulting job for his previous employer through a temp agency in NY. We are wondering what tax implications will occur. Should his employer in Florida use his parents address for his checks even though they are just direct deposit? Any help you can lend would be greatly appreciated!
    Thank you

    • Tax Advisor says:

      Hi Christie,

      Based on your description of your husband’s situation, it sounds like he will have to file a part-year resident tax return in New York. Lucky for him, Florida has no state income tax, so he won’t have to worry about filing there. He will have to pay tax in NY for any income he earned while he was still a NY resident, so this includes both his permanent job and his consulting work. But he only has to pay NY tax on the consulting work for the period after he ceases to be a NY resident if he physically performed work in NYS. If all of the work was in FL, he won’t owe any tax. From a tax perspective, because FL has no state income tax, he behooves him to change is residency to FL as soon as possible (which would probably include changing the address he has on file with his employer) so that he will owe less in NY tax at the end of the year.

  75. Mark says:

    My wife works in Mississippi and pays Missiisippi state tax. We live in tennessee which has no state income tax. Will simply filing as a non-resident automatically give us the Mississippi state tax back? Are there other steps involved?

    Thanks!
    Mark

    • Tax Advisor says:

      Hi Mark,

      Nope, all she has to do is file a nonresident Mississippi state tax return for only the income that she earned in MS. Exactly how much you’ll get back depends on the state and your individual circumstances. You can probably expect some of that tax back, but it’s impossible to say how much, if any.

  76. Dianne says:

    Hi There!

    If I live in Chicago, but my employer is in Texas, I would still pay state taxes, correct? How do I pay these if they are not deducted from my payroll check? I am looking into a job that wants me to open a satelite office in Chicago but not sure exactly how this works. Also would I be able to deduct rent, utilities, etc… if I work from home?

    Thanks!

    • Tax Advisor says:

      Hi Dianne,

      I’m guessing that you’re a resident of Illinois. That means that you will have to pay IL state income tax on all of your income. You must also file a nonresident return in every other state that you earned money in. But you do not need to pay taxes to the state where your employer is located if you did not work there. Besides, Texas has no state income tax anyway.

      As for the new job you are considering, it will not really affect your tax situation. Obviously, the more money you make, the more you will owe to IL. But if you’re a resident, they’re already taxing all of your income so it makes no difference where you earn it.

      As for the deductions you may be able to claim if you work at home, take a look at the IRS page for deducting business expenses, particularly the section on business use of your home.

  77. Keith says:

    I live in Texas but work for a company that requires me to travel. The new company policy is if I work more than 10 straight days in another state they will withhold that state’s income tax. This is a new policy so is this a new? I could work in several different states a year. Will I have to file returns in each state? The cost of doing so will be prohibitive. Can I get around this by leaving the state for 24 hours – say I am working in Nebraska, can I travel to SD every 8 or 9 days to avoid this?

    • Tax Advisor says:

      Hi Keith,

      The decision to suddenly withhold state tax from your paycheck is a new policy of your company. It has nothing to do with some government policy change. Technically, you are supposed to file taxes as a nonresident in every state aside from Texas where you earn money. Most states have a policy about how long you have to be in the state before you have to file. I recommend checking the website of the tax authority for every state you work in and checking the Who Has to File? page to see if you qualify. Your company probably figured that ten days was a good cutoff that works for most states. Now, if your company does withhold state taxes from your paycheck, you will have to file a return in that state no matter what the state’s requirements are. Most likely, you will be able to get some of this money back when you file. Unfortunately whether you have to file has nothing to do with how many consecutive days you spend in the state, so staying in a motel somewhere else every 9 days is not going to make a difference.

  78. Keith says:

    Hi,

    I have permanent residence in Illinois and just began working for a company based out of Rochester, NY. I provide support to the sales people in my territories of ND, MN, WI, MI and IL. when not traveling I work out of my home in Illinois. My question is what state do I have to file state income taxes with? Thank you in advance for your reply.

    • Tax Advisor says:

      Hi Keith,

      You definitely have to file taxes in Illinois, since that is your state of residence. You will file as a resident and IL will tax you on ALL of your income. But then you also need to file taxes as a nonresident in each of the other states in which you earn money. So, if you physically went to ND, MN, WI, and MI you may have to file there. Check the state tax authority websites to see who exactly has to file. Most states will exempt people who were in their state for only a few days. As for NY, you only have to file a return if you went there. Just because the company you work for is based there does not mean that you necessarily have to file a NY return.

  79. Theresa says:

    I worked for a company in CO. I just moved to FL and the company is now allowing me to work remotely from FL. My residense will be declared as FL and all my work is done in FL but for the CO office. I know FL doesn’t have state taxes but will state taxes for CO still come out of my paycheck. I keep getting scewed answers from my payroll department.

    • Tax Advisor says:

      Hi Theresa,

      If you moved permanently to FL and only work in FL then you shouldn’t have to pay state income tax on your earnings. You should only have to pay CO income tax if a) you are still technically a resident of CO or b) you were physically in CO when you earned your money. Based on your description of your situation, it doesn’t sound like you should have any CO income tax withheld. But if your payroll dept. does withhold CO tax, then you will have to file a CO return in order to get that money back.

  80. amanda says:

    I live in Florida, but my company is in NY. Am I responsible for paying NY state tax?

    • Tax Advisor says:

      Hi Amanda,

      You only have to pay NY tax if you physically worked in NY. If you did all of your work from FL and only worked for a company based in NY, you don’t need to pay NY tax.

  81. Sam says:

    Hi,

    I’m starting a job as a pilot with Hawaiian Airlines, but I live in Portland OR, I will be flying in their “inter island” fleet which means, all with in the state of Hawaii…. I have an address here, as per the companies requirement, but I still maintain my primary residence where my wife and kids live in Portland OR, and I am there 33% of the month. Would I pay taxes in both states? or just Hawaii?

    very confused…

    • Tax Advisor says:

      Hi Sam,

      You will most likely have to file both a Oregon and a Hawaii state return. It sounds like you are still officially a permanent resident of Oregon. In this case you will have to file a resident return on all of your income, regardless of where it was earned. Since you are earning money in Hawaii, you will most likely have to file a nonresident return in Hawaii as well. According to the N-15 Instructions, “every individual doing business in Hawaii during the taxable year must file a return.” As a nonresident you will only pay tax on your Hawaii income. On your returns you will be able to claim the taxes you pay to the other state to ensure that you are not double-taxed.

  82. Michelle says:

    I am employed with a Michigan company but work from home, I am thinking of moving to a surrounding state, but keeping my at home job from Michigan. Will I have to pay taxes for both Michigan and the new state?

    • Tax Advisor says:

      Hi Michelle,

      No, most likely you will not have to pay MI tax. The only cases in which you would have to file a MI would be if you maintain your MI residency, or if you physically do work in MI (for example, if the company required that you work from their office a few weeks a year). If you permanently move to another state and do not work in MI at all you won’t have to pay tax in MI.

  83. Pat says:

    I work in and live in Vermont but my mail, etc. goes to my parents home in New York State (my car, motorcycle, etc. are registered and licensed there). I was working in New York last year but only for 1 month and I’m assuming I’ll get a NYS Tax form this year. To which state to I file or do I have to do both? and if so, do I get credit for taxes taken out in Vermont (non-resident?)

    • Tax Advisor says:

      Hi Pat,

      Your situation is tricky. You will need to file in one state as resident, and in the other state as a nonresident (the exception to this would be if you moved sometime over the last year, in which case you would file as a part-year resident in both states, but that’s a whole separate can of worms). It sounds to me like you are a Vermont state resident, but I’m not entirely sure. You need to spend some time on the NYS tax website and decide for yourself. But let’s assume that you are a Vermont resident. That means you will file a resident tax return in VT on which you pay tax on ALL of your income. Then you file a NY nonresident return in which you pay tax on the money you earned from NY. And don’t worry about being double-taxed: you will be able to claim the taxes you pay to the other state.

  84. Suzie says:

    I live in FL and will be working for a company in IL. I will be out in IL 50% of the time and the other 50% of the time I will be working from home/FL. Do I have to pay taxes for IL?

  85. BART IRVINE says:

    I LIVE IN ALABAMA, BUT I WORK 5 DAYS A WEEK IN GEORGIA AND HAVE MY PAY DIRECT DEPOSITED IN MY ACCOUNT IN ALABAMA.
    WHERE SHOULD I BE PAYING MY STATE TAXES AND SHOULD THIS MAKE A DIFFERENCE IN MY FEDERAL TAX RATE?

    • Tax Advisor says:

      Hi Bart,

      You have to file taxes as a resident in Alabama, where you will be taxed on all of your income. But you must also file as a nonresident in Georgia, where you will be taxed only on the income that you earn in GA. Don’t worry, you won’t be double taxed. You will be able to claim the taxes paid to the other state. This should not affect your federal tax rate.

  86. Larry says:

    Hi,

    I live in Nevada (no State income tax) and I will be working remotely from home my home office. The company I worked for is based out of Maui, HI. It is possible I may travel there 4-6 weeks per year. What is the best way to make sure I am covered?

    • Tax Advisor says:

      Hi Larry,

      You are correct that Nevada has no state income tax, so you don’t have to worry about that. The real question here is whether or not you have to file a Hawaii nonresident state return.

      The Hawaii Nonresident and Part-Year Resident Income Tax Forms and Instructions has this to say: “Every individual doing business in Hawaii during the taxable year must file a return, whether or not the individual derives any taxable income from that business. ‘Doing business’ includes all activities engaged in or caused to be engaged in with the object of gain or economic benefit, direct or indirect, except personal services performed as an employee under the direction and control of an employer. For example, every person receiving rents from property owned in Hawaii is ‘doing business’ and must file a return whether or not the person’s expenses exceed the gross rental income.”

      I’m a little unclear about your particular situation. If you are an employee (ie getting a W-2 from this company in Hawaii) the above probably does not apply to you. If you’re not an employee (getting a 1099 for example) this almost certainly means you have to file.

      BUT even if you are an employee, Hawaii still requires you to file if you earned more than $1,040 in Hawaii. I’m going to guess this is the case, especially if you are there 4-6 weeks out of every year.

      If I had to venture a guess based on what I know, I would say that yes, you should probably file a nonresident Hawaii return in which you pay tax on all the income you earned in Hawaii. But you should look over this document more closely to make sure the filing requirements really do apply to your specific situation.

  87. Larry says:

    Hi,

    Just to follow up I am in property management and will be receiving my commissions from the broker in HI. Love the site!

    Mahalo

  88. Vikky says:

    I own a home in GA and reside in GA. I recently started a project in CT and I am staying in CT for 5-10 business days/month at my client location. Do i need to pay taxes in both states? if yes how much % I need to pay from my income? Can i claim CT state tax back when I file my taxes ?

    Please advise

    Thanks

    • Tax Advisor says:

      Hi Vicky,

      You will definitely have to file a resident tax return in Georgia in which you will be taxed on all your income. And since you are earning money in Connecticut you will most likely also have to file a nonresident return in CT. I can’t know for sure based on your description. Check out this page about nonresidents with Connecticut source income from the Department of Revenue Services to see if you have to file. If you do have to file in CT, you will only be taxed on the income you earn in CT. It’s impossible for me to know what % you will need to pay in taxes and yes, you can claim the taxes you pay to the other state so that you are not double-taxed.

  89. Aaron says:

    I currently work in SC as a contractor. My permanent residence is in IN. Is it necessary for both state taxes to be deducted from my paycheck? I don’t like giving the government an extended interest free loan. What can I do about this so only SC taxes are taken out as this is a much higher income tax rate?

    Thanks!

    • Tax Advisor says:

      Hi Aaron,

      You can try talking to your employer to see if it’s possible to get out of having IN taxes withheld, but my impression is that they do need to withhold taxes in both states. Yes, it’s not great for the government to hold on to your refund money throughout the year, but this way at least you know your liability will most likely be covered in both states.

  90. Cathy says:

    I live in Louisana, who has state income taxes, and also work in Texas. While I do own a home in Shreveport, LA. I also have a residence in Port Aransas, Texas. In fact, I have a valid Texas driver license, Texas car registration and pay property taxes tied to my Port Aransas residence. I also own a home in Louisana and pay property taxes there. If I earn income in Texas and maintain a residence in Texas, am I exempt from Louisiana State Income taxes? Thank you for your help.

    • Tax Advisor says:

      Hi Cathy,

      Based on your description of your situation it sounds like a) you are a Texas resident, and b) you did not receive any income from Louisiana sources. If both of these are true, then you don’t have to file a LA return.

  91. Melissa says:

    My company’s headquarters are in KS. All of our employees live in KS. This is where the employees come to work most days. As part of the job the employees are require to travel to different states for varying lengths of time. We do repair & maintenance work and Consulting & Oversight work. Do we need to withhold income taxes for each state the employee travels to to perform work? Are their guidelines in determining when we would need to consider their income earned in the other states?

    • Tax Advisor says:

      Hi Melissa,

      Yes, there are guidelines for determining whether a nonresident has to pay tax in a state they work in. Unfortunately, there is no uniform standard for the whole country. Each state has its own requirements. In your situation the best thing you can do is go to the website of each state’s tax authority and look for the section about who has to file or about nonresident returns. Even if your employees would be required to pay taxes in these states, I’m not sure if that means that you as an employer are obligated to withhold them. Getting into contact with someone from that state’s tax authority might be your best option.

  92. Loren says:

    Hi Tax Advisor,

    My husband’s company will be relocating him to WA. I work remotely, my company is based out of CA. So how would I file taxes if I live in WA but work out of CA? Thanks!

    • Tax Advisor says:

      Hi Loren,

      Washington state has no income tax, so if you are going to become a WA state resident, that means you don’t have to file a return in WA. And if you do all of your work remotely, you will not have to file a CA return. You only need to file a CA return if you actually do any work in CA. In that case you would need to file a nonresident return in CA in which you pay tax on all of the money you earned there.

      Be aware though, that if you are moving in the middle of the year, you will need to file a part-year resident return in CA (assuming that’s where you live now). You will have to pay CA for the portion of the year that you lived in the state.

  93. Tammy says:

    I live in Utah but work in Wyoming where there is no state tax. Will I have to pay Utah state tax? Can my Wyoming employer withhold Utah state tax from my check?

    • Tax Advisor says:

      Hi Tammy,

      Yes, if you are a Utah resident you will have to pay tax in Utah on all of your income, no matter where it is earned. You should talk to your employer about withholding Utah taxes – they should be able to do so.

  94. DENISE says:

    I own my house in NC, but was physcially living and working in MD and filling state taxes there. I got a bill in the mail called Notice of intent to assess for failure to file NV return. Am I really responsible fot this or can I send an explanation

    • Tax Advisor says:

      Hi Denise,

      Are you a Maryland state resident? If so, you should only have to file a North Carolina return if you received income from a North Carolina source. For example if you physically carried on a business, trade, or profession in North Carolina, or you derived income from the property you own in North Carolina you will have to file a nonresident return. If you did not derive any income from a NC source, you shouldn’t have to file.

      But, you have to be sure that you are no longer a NC resident. The state might still think you’re a resident of NC. Did you change your driver’s license and voter registration? You may have to call them up and prove that you are no longer a resident.

  95. Kevin says:

    Hi Tax Advisor,

    I “live” in NJ, at least on paper, but all my income is based out of GA. I have also been out of the country for 7 months of the year continuously (april – end of Oct). Will i have to pay income tax in both NJ and GA on all my income? How do I go about paying the taxes I owe in NJ?

    Ps. I dont own a car, house, or apartment. I have an NJ drivers licence and that is where my parents live but i dont pay rent to them (as i have been traveling for work all year). Im not sure if this chances anything.

    Thanks in advance!

    • Tax Advisor says:

      Hi Kevin,

      First of all, you have to pay taxes on all of your income to the state where you are a permanent resident. In your case, this would be New Jersey. Given your unique circumstances, I’m not 100% sure that you qualify as a NJ resident, but considering that you have a NJ driver’s license, your permanent address was in NJ (I assume?), and that you were living there before April and after October (again, I assume), I would guess that you are a NJ resident. Again, to be absolutely sure you would have to speak to a tax agent and give them all the details of your situation, but I would guess that you are a NJ resident, which means you will have to file a NJ resident tax return.

      You also have to file a tax return in any state that you physically earned money in. If the organization that is paying you is located in Georgia, but you never actually went to GA and earned money there, you do not owe GA state tax. If you did go to GA and earn money there, then you will have to file a GA state return as a nonresident and pay tax just on the income that you earned while physically in GA.

  96. Dave says:

    Hi,
    I just moved to California and just took a full time job there at a university in the Los Angeles area. I am also an online professor in the state of Washington (where the university – which is both a physical university and online university – is based) that does not have a state income tax. Do I need to report my income to be taxed by the state of California? I do not have a California driver’s license or license tabs and so I don’t believe I am an official resident. I still have my Washington state driver’s license and license tabs. I will eventually become a California state resident, but all of my work is remote (online). How would you recommend that I proceed?

    Thanks,
    Dave

    • Tax Advisor says:

      Hi Dave,

      Everything depends on where you are an official state resident. I can’t make that determination given what you’ve told me, but I would encourage you to read through FTB Publication 1031 [Guidelines for Determining Resident Status] to figure out if you are a resident.

      If you decide that you are a CA resident, then you will have to file a CA resident return and pay tax on all of your income, no matter where it was earned.

      If you decide that you are still a Washington resident, you will obviously not have to file a WA state return, but you will have to file a CA nonresident return that taxes all of the income you earned in CA. This will include all of the income you earn as a professor in LA as well as whatever income you earned while working remotely while in CA (the fact that the online university is based in WA makes no difference).

      So, basically, the only way your residency status really makes much of a difference is if you physically earned income while in WA state (because you would not have to pay tax on this income). But, if all of your income was physically earned in CA, it won’t save you any money to remain a WA state resident.

      As a side note, if you do decide that you are a CA resident, and you moved in the middle of the tax year, you will have to file a part-year resident return in CA, to make sure you aren’t taxed on any WA income you earned before the move.

  97. Ann says:

    I will be taking a job in Louisana, but will reside in Texas. Will I have to pay taxes in Louisana, since I will be living in Texas. Also, my 18 year old has been working part time since graduating high school, but I still pay the majority of her college tution and other living expenses. Can I still claim her on my taxes and if so how? Thanks

    • Tax Advisor says:

      Hi Ann,

      Yes, you will have to file a nonresident tax return in Louisiana in which you will be taxed on all the income you earned in LA.

      As for your son, you can still claim him as a dependent provided he meets the following qualifications:

      • He is under age 19, or under age 24 and a full-time student
      • He is a U.S. citizen or resident, or a resident of Canada or Mexico
      • He is unmarried, or married but not filing a joint return
      • He has lived with you for at least half the year (unless absent due to illness, education, business, vacation, or military service)
      • He did not provide more than half of his own support
  98. Monique says:

    I am going to be working in New Jersey but I live in New York. In case the payroll dept is not sure, Is there anything specific I need to know when completing a W-4. How does this work? Still have to pay double taxes??

    • Tax Advisor says:

      Hi Monique,

      I bet your payroll department deals with this all the time, as it’s pretty common in the tri-state area. You don’t have to do anything special on your W-4 – just be sure the payroll department knows you’re a New York resident and you want to make sure enough tax is withheld.

      When tax time comes, you will have to file two state tax returns: a resident return in New York (which will tax you on all your income) and a nonresident return in New Jersey (which will tax you only on the income you earned in New Jersey). But don’t worry, even though you’re filing two returns, you won’t be double taxed. You will be able to claim a credit for the taxes you’ve already paid to the other state.

  99. Chris says:

    In February of 2012 I moved from Annapolis MD to Orlando FL. My company is based in MAryland. I am a permanent FLorida resident now and work from Florida. Beofre the move..I was paying Maryland state income tax and Anne Arundel County tax. After moving the County tax has ended immediately while the state tax continues to be withheld. When I file my tax return…is that money due back to me? I understand I was a Maryland resident for 2 months…so maybe not all of it. But in moving forward for my 2013 tax return…when I would have been a Florida resident for the entire year…will all the income tax being withheld be due to me? I have talked with work and the accounting department is telling me they withhold the money because I am taking direction from a company based in maryland…so they can withhold state inome tax. Is that possible to owe MAryland state income tax when i am not a Maryland resident? Your help is appreciated greatly!

    • Tax Advisor says:

      Hi Chris,

      For 2012 you will have to file a Maryland part-year resident tax return and you’ll have to pay tax on all of the income you earned while you were a resident of Maryland. Since this was only two months (and MD taxes have been withheld for the entire year) I imagine that you should get most (but probably not all) of this money back in the form of a refund.

      As for the upcoming year, I don’t think any MD taxes should be withheld – especially if you are planning to be a Florida resident for the entire year (where, I’m sure you’re aware, there is no state income tax). Generally you have to pay taxes to the state where you live and any state where you physically earned money. In this case, since you both live and work in FL, I don’t think you will have to file a MD return. Therefore you shouldn’t have any MD taxes withheld. Where your company is located does not make a difference; it all depends on where you are doing the work. If that’s in FL, then you shouldn’t owe MD tax on the income you earn, even if it’s from a MD company.

      But do take note: if you withholding is not changed before January 1, 2013, you will have to file a MD return. IF any MD tax is withheld (even if you aren’t required to file a return) you will have to file a MD return, just to get that money back. So talk to your HR department and see if you can get your withholding changed before the new year!

  100. Kevin says:

    I lost a position in CA, Oct 2012, and am looking to take a position in FL starting in January 2013; I will relocate to FL but the house I own and my family are in California, they will not move for at least 1-2 years; the FL company will be paying me on a W-2; I intend to become a FL resident (again); get a FL DL, register my car and have my voter reg there, I will keep my other car reg in CA; for 2013, will I need to pay CA state income tax if my family, car and house is still in CA (my spouse does not work)? I can see paying property tax on the home/car but not CA state income tax, is that a correct evaluation if I am no longer a CA resident but my family is?

  101. richard boney says:

    My company is based in louisana, all my labore is performed off shore in the gulf of mexico,i live in texas and pay louisana state tax,can i get all that back when i file?

    • Tax Advisor says:

      Hi Richard,

      I am actually not sure whether working offshore counts as receiving money from a Louisiana source. But one thing is certain: if LA taxes were withheld from your paychecks, you definitely have to file a nonresident LA return. The Louisiana Department of Revenue will determine how large your tax liability is and how much you get back. My guess would be that you’ll probably see most of what was withheld in the form of a refund but I can’t be sure. The best thing to do is probably to contact the LA Dept. of Revenue, your payroll dept., or a local tax agent well versed in offshore income if you want to know more specifically how much you can expect to get back.

  102. Shari says:

    Hi, My husband lives and works in Nevada. HE is a resident of NV but me and the children still live and reside in Utah. We own a home in utah. How do we file our taxes? Can I file in utah and he file with the dependants in NV?

    • Tax Advisor says:

      Hi Shari,

      The good news is that Nevada does not have any income tax, so as long as your husband is a resident of NV (and he didn’t earn any income in any other state), he doesn’t have to worry about state taxes. Even though you two can file a joint federal return, you can file a “married filing separately” state return in Utah on which you claim your dependents.

  103. Dana says:

    My 25-year-old son got laid off from his job and lived with us in his boyhood home from Jan- mid-June. He collected unemployment while he looked for a job. He was hired by an Alabama company who sends engineers around the country doing construction. He worked in Missouri from June to November. He was transferred to Nevada late November and will live there till Sept 2013. He does not own a residence in Georgia but his car has a Georgia tag and his drivers license is Georgia.
    So he will file a Georgia and Missouri tax, but will Georgia see him as a resident? He doesn’t have a home here or plan on returning. He will always be moving around every 6-9 months. If he lives in Nevada the majority of 2013 will Georgia want a tax return because he has a drivers license and tag?

    • Tax Advisor says:

      Hi Dana,

      The difficult thing about residency is that it’s subjective. There are no hard and fast rules. But the fact of the matter is that he has to be a resident somewhere. Either he becomes a Nevada resident or he stays a Georgia resident. The thing about residency is that it often comes down to where you have the strongest ties – and drivers license and plates are part of that. So is voter registration and the location of your permanent address. The state won’t necessarily come after him just because he has a GA license, but it is a piece of evidence supporting the case that he’s a GA resident.

      Here’s what he needs to do. Either he decides to remain a GA resident, in which case he will have to file a resident return there as well as a nonresident return in Missouri. Or else he can take steps to become a Nevada resident. But in this case he’s still going to have to file a part-year GA return and a nonresident MO return. Plus he’s going to have to take steps to actually become a NV resident – which would include things like changing his license and voter registration.

      If he’s going to be moving around a lot, the easiest thing to do is probably to remain a GA resident and file a nonresident return wherever he works. But then again Nevada has no income tax.

  104. GW of Atlanta says:

    Dear Tax Advisor,

    I work for an employer based in Washington DC but work from home 3 weeks out of 4 in Georgia. Once a month, I go to the DC office and work at a visiting worker desk for a week. I am paid electronically and into my bank account in Georgia. Two questions: 1) Do I need to file anything in DC? 2) Are any of my travel expenses to go to DC deductible? Thanks.

    • Tax Advisor says:

      Hi GW,

      From what I can tell based on the District of Columbia’s Office of Tax and Revenue website, you would only have to file a return if you lived in the district for 183 days or more. If you were only there one week a month, I don’t think you qualify. You can check it out here – http://otr.cfo.dc.gov/otr/cwp/view,A,1330,Q,593736.asp

      I’m not sure whether you will be able to deduct your travel expenses. According to the IRS, “Travel expenses paid or incurred in connection with a temporary work assignment away from home are deductible. However, travel expenses paid in connection with an indefinite work assignment are not deductible. Any work assignment in excess of one year is considered indefinite. Also, you may not deduct travel expenses at a work location if it is realistically expected that you will work there for more than one year, whether or not you actually work there that long. If you realistically expect to work at a temporary location for less than one year, and the expectation changes so that at some point you realistically expect to work there for more than one year, travel expenses become nondeductible when your expectation changes.” You can read more here – http://www.irs.gov/taxtopics/tc511.html.

      Also, I would just note that you can’t deduct any expenses that have been reimbursed by your employer.

  105. GW of Atlanta says:

    Thanks very much. I appreciate your help: you really know your stuff.

  106. MW says:

    Hello, My husband and I are Wisconsin residents. For 2012 my husband worked in MN, and I worked in WI. Previous years our state income taxes have balanced each other out and we didn’t have to make any estimated tax payments to WI. However, I’ve taken a new job in MN and 2013 will have both of our incomes generated from MN. We will be paying MN income taxes throughout the year. Our estimated income will be in the 135,000-140,000 range. According to my research the MN Income tax bracket will by 7.85%. Wisconsin’s income tax bracket for a married couple filling joint will be 6.5%. I keep hearing I will have to pay quarterly tax estimates thoughout 2013. But with the actual taxes being so different why would I have to? Wouldn’t the MN offset the WI income tax? I know I have to be within $200 to avoid any penalty. Let me know your thoughts! Thank you!

    • Tax Advisor says:

      Hi MW,

      Let me preface this by saying that it’s impossible for me to give an accurate answer based on the information available here. I highly recommend that you visit a local tax professional who can take a look at your entire tax situation and then give you the best information about how to proceed.

      That being said, I think that if you two are employees, you should probably have both Wisconsin and Minnesota taxes withheld from your paychecks. And if you are independent contractors (which I assumed you were based on your mention of sending in estimated tax payments) you should probably make estimated tax payments to both states as well. It’s true that WI will give you credit for the taxes you pay to MN so that you won’t be double taxed. But this is the only advice I can give you to stay on the safe side. In all likelihood you will get a refund. Again I encourage you to bring the details of your entire tax situation to a tax professional.

  107. Jason Y. says:

    I am a resident of Michigan, but work in NC. The payroll dept. in my company deducts NC state tax withhold, but not for MI.

    How I will handle this when filling my state income tax in Michigan soon?

    Thanks

    • Tax Advisor says:

      Hi Jason,

      What this means is that you’ll have to file a resident return in Michigan in which you’ll be taxed on all of your income. Then you’ll have to file a nonresident return in North Carolina that only taxes you on the income you earned in NC. Now what happens when you file two state returns is that you can claim a credit for the taxes you’ve already paid to the other state. In this case, you’ve already paid taxes to NC through withholding. You will then get credit for this on your MI return. I’m not sure exactly what your situation is. Did you work in NC all year? Was any MI tax withheld perhaps before you started in NC? It’s impossible to say what will happen with two state returns, but it’s entirely possible that your NC withholding will cover your state tax obligations. Otherwise you may owe a little to MI after you get done preparing your returns.

  108. LH says:

    Hello,
    My permanent residence is in Illinois and work for a company whose HQ is VA. I physically work at a site located overseas. Because my permanent residence is Illinois I paid IL income taxes. I did not work in VA at all. I did not pay VA income taxes. Does this seem to be correct?

    • Tax Advisor says:

      Hi LH,

      Yep, that sounds good to me. There’s no escaping the IL tax, since you’re a resident, you’re going to be taxed on all your income. And the only reason you would have to pay VA tax is if you were physically working in VA for some reason.

  109. rtt says:

    Yes I work offshore, and my company is based out of texas, I live in Ga, and my company doesn’t hold state taxes out of us, but at the end of the year Ga reaches deep in our pockets for money, I would like to know is there any laws that may help out on the maritime industy?

    • Tax Advisor says:

      Hi RTT,

      Unfortunately if you are a resident of Georgia, GA is going to tax you on all of your income, no matter where is was earned. As far as I know there are no special maritime industry laws that will help you get out of it. Have you tried asking your company to withhold GA state taxes, in order to take the sting out of it?

  110. Dara Lang says:

    I am a Florida resident who has taken a temporary job in Ohio. I will be commuting for this job from nearby, from the state of Kentucky, where I own a residence also. Understanding that Ohio will be withholding, does Kentucky have any play in this situation?
    Do I list Fl or Ky as my address/residence with my new employer?

    • Tax Advisor says:

      Hi Dara,

      If you are in fact a resident of Florida, then you only have to file a nonresident Ohio return and you don’t have to file anything in Kentucky. But, be careful. You need to make sure that you don’t actually qualify as a Kentucky resident. According to the Kentucky Dept. of Revenue, “persons who maintain permanent residence in Kentucky (i.e., are domiciled in Kentucky) are considered residents. Persons not domiciled in Kentucky but who live in Kentucky for more than 183 days during the tax year are also considered residents.” You can read more here: http://revenue.ky.gov/NR/rdonlyres/184DC734-C6C6-4B18-BE6A-FFD7940B65DD/0/KyRev740NPforwebFINALfromGW2012.pdf

      I don’t know enough about your situation to make this call, but I can tell you that everything depends on where you are a resident. So be sure to check the residency requirements of Kentucky and Florida very carefully.

  111. Kristi says:

    I reside in Florida and work from home for a company located in Texas, but headquarters are in Tennessee. How do I treat or file State Income taxes.

    • Tax Advisor says:

      Hi Kristi,

      You don’t have to file a state tax return at all! Since Florida has no state income tax, you don’t have to file a state return. And don’t worry about Texas or Tennessee. It doesn’t matter where your company is located. You only have to file state taxes in the state where you live, and in the states where you physically earned money. Since that’s only FL for you, you don’t have to worry.

  112. Lanitta Phelps says:

    What do I do if I worked in Wyoming in 2010 and claimed unemployment benefits for a lot of the year, live in Idaho. What tax do I have to pay?

    • Tax Advisor says:

      Hi Lanitta,

      You may have to file a resident return in Idaho that will tax you on all of your income. However, if your income is below the filing threshold, you may not have to file. Check Idaho’s filing requirements to be sure. As for Wyoming, it has no state income tax, so you don’t have to worry about filing there.

  113. Megan McWilliams says:

    What do I do when my permanent address is in NY, but I have been living in MO for the last 6 months? I am on a rotational program for my company, so I only live in Missouri for a year. Should I file taxes with NY, since my permanent residency is still there? Or do I file in Missouri since I work and rent an apartment here?

    • Tax Advisor says:

      Hi Megan,

      First you need to figure out where you are a resident. I don’t really know about this determination, but these links should help you figure it out.
      http://dor.mo.gov/personal/nonresident/
      http://www.tax.ny.gov/pit/file/pit_definitions.htm#resident
      This is likely going to be a close call with no clear decision.

      If you decide that you were a New York resident for the tax year, you will have to file a resident return in New York in which you are taxed on all your income. Then you will have to file a nonresident Missouri return in which you are taxed only on the income you earned in MO.

      On the other hand if you determine that you were a Missouri resident, you will have to file a part-year resident return in New York for the portion of the year you lived in New York and then a part-year resident return for the time you lived in MO.

      Don’t quote me on this, but I’d say it’s likely that you’re still a New York resident and a Missouri nonresident. But do be sure to check their definitions of residency carefully.

  114. Tony says:

    I live in FL but travel weekly to Louisiana Monday -Thursday. I work on a Federal Contract on Ft. Polk, any loopholes for Federal work on a Federal installation? I hate taking a paycut to travel for my company as FL has no state income tax.
    Thanks
    Tony

    • Tax Advisor says:

      Hi Tony,

      I know that military personnel whose domicile is not Louisiana are not required to file a Louisiana income tax return on the wages earned from the military. I don’t think that includes you, but I’m not sure. Most likely you will have to file a LA return.

  115. Connie says:

    I am a resident of California, but later on this year I will be moving to Washington State (has no income tax) or Oregon (has income tax), what is the tax implications I have to be aware of if I live in either Washington or Oregon?

    • Tax Advisor says:

      Hi Connie,

      Well, first of all, you will have to file a 2013 part-year resident return in California, which will tax you on all of the income you earned during that portion of the year that you were a CA resident. If you end up moving to Washington (and becoming a WA resident) then you will not have to file a return in WA because WA has no income tax. You should note that the state makes up for the lost revenue in other ways, most noticeably a higher sales tax. If you decide to move to Oregon (and become an OR resident) then you will have to pay a 2013 part-year resident return in OR that taxes you on all the income you earned for that portion of the year that you were an OR resident.

  116. Bing says:

    I am living in ct and will be working and staying in ny for 5 days a week, do I pay tax in both states?

    • Tax Advisor says:

      Hi Bing,

      Yes, most likely you will have to file as a resident in CT and as a nonresident in NY. But check the residency requirements of both states carefully. If you are staying in NY for that many days, you might actually qualify as a NY resident.

  117. SoCal says:

    Hello,
    My wife is employed in CA and receives her paycheck. However, she lives in Pennsylvania. Should she insist that CA taxes are not deducted from her payroll? I understand that she has to PA state tax anyway and then either do not pay CA state tax at all, or have it deducted and later on returned back to her using CA non-resident filing form? Thanks!

    • Tax Advisor says:

      Hi SoCal,

      Yes, if you wife is a Pennsylvania resident she most certainly has to pay PA taxes. She will have to file a resident PA state return that taxes her on all of her income, wherever it was earned.

      As for California, it depends on whether she is physically doing her work in CA. If she physically travels to CA and thus earns this income in CA then she has to file a CA nonresident return that will tax her just on the income she earned in CA. If she works remotely from PA and never actually goes to CA, then she does not have to file a nonresident CA return and there’s no reason to have CA taxes withheld. If they are withheld, they she will have to file a nonresident return just to get them back.

  118. Oleg says:

    I live in NY and work in NJ. This is my first year working in NJ. I am paying taxes for both stated and its killing me. When I file how will I get my tax $ back from NJ?? or do they just apply for NY??? Please assist thank you in advance!

    • Tax Advisor says:

      Hi Oleg,

      Well, you are going to owe taxes to both New York and New Jersey. You will have to file a resident return in NY that taxes you on all of your income and a nonresident return in NJ that taxes you on the income you earned in NJ. When you file these state returns, you will be able to claim a credit for the taxes that you have already paid through withholding to the other state. This will ensure that you are not double taxed.

  119. Neeta says:

    Hi,
    I live in new hampshire (where there is no state tax). My parent company is based out of NY but client is in Mass. I will be working from home(NH). In this case, will I need to pay any state tax? Do i need to ensure what they put as project address or anything on W-2…?
    Thank you for your help.

    • Tax Advisor says:

      Hi Neeta,

      You shouldn’t need to pay any state tax provided all of the work you did was physically in New Hampshire. If you traveled to New York or Massachusetts and earned income while physically in these states then you may have to file nonresident returns there. You may also have to file returns there if your company mistakenly withheld taxes there, but in this case it will only be to make sure you get the money back. On that note, I would make sure they have your address as being in NH.

  120. Neeta says:

    I would like to add to the previous query that – the company said W-2 will have NY taxes taken out. So if i file as a non-resident of NY, would i get the money back? Thanks.

  121. jeff says:

    I live in Ky and work in TN what stae will I have to pay taxes to and will have to file as anon-resident for TN for taxes

    • Tax Advisor says:

      Hi Jeff,

      If you live in Kentucky (and are a KY resident) then you have to file a resident return in KY that will tax you on all of your income, no matter where it was earned. Now, normally you would also have to file a nonresident return in the state where you earn money, but since Tennessee doesn’t have an income tax, you don’t have to worry about it.

  122. Tom says:

    Hi!
    My family and I just moved in August 2012 from Hawaii to Oregon. I found a job with a company in California which sends me out every 3 weeks to a different location (different states) to do some work for them. My paycheck lists the company in California but income tax is taken out for the state of Texas because I get paid from there! We are current Oregon residents and I know that we have to file a tax return in Hawaii being the fact that we have been a part-year resident and earned income there. Do I also have to file income tax in Oregon although we do not have any earnings in Oregon. And what about a tax return for the state of Texas? My company obviously deducts income tax for the state of Texas but I have never been or worked there?ANy idea if those states have a reciprocal agreement?

    • Tax Advisor says:

      Hi Tom,

      You will definitely have to file a part-year resident return in both Hawaii and Oregon. These returns will tax you on all of your income for the portion of the year that you lived in both states.

      You will also have to file a nonresident return in every state where you earn money. Since you work in many different states, this could get complicated. My suggestion would be to check the website of the tax authority of each state where you work. Most have a threshold level of income/days worked in that state before you have to file a return.

      You should note that even though your company is based in California, you should only have to pay CA taxes if you yourself physically do work in CA. If you did not do work in CA you should not have any CA tax withheld.

      Also your claim that Texas taxes are being withheld from your paycheck is very curious since TX does not have a state income tax. Take another look at that paycheck or ask your employer about it because I’m pretty sure that’s impossible. And another thing, you shouldn’t have taxes withheld from a state because that’s where you “get paid from.” You should only have taxes withheld from the state where you live and/or the state(s) where you work.

  123. Tom says:

    Hi!
    Just an add-on to my previous questions!
    Just figured out that Texas is one of the states that doesn’t have income tax!!! Now I am confused – how can my company withhold taxes for that state??

  124. darek says:

    I worked in Missouri but I live in Tennessee so how do I file?

    • Tax Advisor says:

      Hi Darek,

      You will have to file a resident return in Missouri that taxes you on all of your income no matter where it was earned. Since Tennessee doesn’t have an income tax you don’t have to worry about it.

  125. AJ says:

    Tax Advisor –

    I have a good one for you. I lived and worked in Alabama for half of the year. I transferred companies and have been traveling and working since in TN, VA, and NC for a new company. I have moved and put my belongings in storage since working for the new company and that address for their payroll purposes is in VA. My identification and registration still says Alabama however. I know that I need to do resident and non-resident returns for every state but since my identification hasn’t permanently switched to Virginia because I am constantly traveling am I still able to put that I am a permanent resident for half the year in VA?

    • Tax Advisor says:

      Hi AJ,

      Residency is one of the most complicated tax issues out there and it’s going to determine how you file. The problem is it’s often subjective (as I imagine it will be in this case). The first thing you need to do is determine whether you ever became a Virginia resident or whether you stayed an Alabama resident.

      Here are the requirements of VA residency: http://www.tax.virginia.gov/site.cfm?alias=ResidencyStatus. You need to figure out if you’re a VA resident. A lot of it will probably come down to whether you intend to establish a legal residence.

      If you decide that you are a VA resident, then you will have to file a part-year resident return in AL and VA as well as a nonresident return in the other states where you earned money (although you should note that most will have income/time limits below which you might not have to file, so be sure to check the state tax authority websites).

      If you decide that you are NOT a VA resident, then you just have to worry about the resident return in AL and then any of the nonresident returns in the states where you earned money.

      You’ll have to figure out if you are a VA resident for yourself, but my guess would be that you are a VA, especially if you don’t have a home or anything in AL.

  126. April says:

    Hello! I just purchased a company (no store front) that I have worked at for the last 10 years. This company is based in California and it has been changed from a “Corporation” to a “Sole Proprietor” with myself as the owner. I have all of the required business licenses, contractor’s license, bank account, etc… I am planning on moving to Texas this summer and am planning on running this business from Texas with one full-time employee working in California. All revenue will come from California customers. This business involves an employee (and at times a sub-contractor) testing water systems and forwarding all paperwork to me to process and send invoices. Would I pay tax in California or Texas? Thank you in advance!

    • Tax Advisor says:

      Hi April,

      First of all Texas has no income tax, so you will be able to avoid filing a resident return and you won’t have to pay taxes to that state.

      So the question becomes whether you have to file a nonresident return in California. I know that if you were an ordinary employee you would only have to pay taxes in CA if you physically did work in CA. But I think that a trade or business that operates in CA is considered CA source income and so you’ll have to file a nonresident return in CA only on the income you earn there. But I’m not 100% positive about this. I would check with a tax adviser in CA who is accustomed to dealing with business issues.

  127. April says:

    Hello again. I wanted to clarify my previous question. I want to know if I will be paying taxes in California or Texas in 2014 when I am living in Texas full-time. I realize that they will be split this year since I will have lived in California for 6 months and Texas for 6 months, but what about after that, when I am living in Texas full-time and have left California permanently? Thank you again!

  128. Gina says:

    Hello, I just found this site and I think it is awesome. I have a question. I was laid off in March 2012 and had to cash in my 401 which I was penalized ( I knew I would be) and then I am going to be taxed again when I file my taxes. Someone told me that since I had to cash it in due to “hardship” that I would not be taxed again because of the reason for cashing it out? Is this true? I personally haven’t heard of this before but I couldn’t make it on unemployment. Thanks for your time

    • Tax Advisor says:

      Hi Gina,

      I really don’t know much about retirement plans, but this page from the IRS might be helpful: http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-Hardship-Distributions.

      In particular, I would direct your attention to this paragraph: “Hardship distributions are includible in gross income unless they consist of designated Roth contributions. In addition, they may be subject to an additional tax on early distributions of elective contributions. Unlike loans, hardship distributions are not repaid to the plan. Thus, a hardship distribution permanently reduces the employee’s account balance under the plan.”

  129. P Haran Sundaresan says:

    Hi I am permanent resident of Florida and would be working in Virginia for this year 2013 on a contract for 6 – 12 months? Do I need to file any type of returns for Virginia> Thanks

    • Tax Advisor says:

      Hi P,

      Yes, you will need to file a return in Virginia. Most likely I think you will still be considered a resident of Florida, in which case you will need to file a nonresident return in VA that taxes you only on the income you earned in VA.

      Because you’re going to be there so long you should check the VA residency rules however, to make sure you don’t qualify as a resident. In that case you would have to file a part-year resident return in VA: http://www.tax.virginia.gov/site.cfm?alias=ResidencyStatus

  130. Kayla says:

    Hello!

    I have a bit of an interesting and complex tax situation this year that I would love some guidance on. I lived in Alabama and worked as a full-time exempt employee. In April, I moved to Florida (as you know, no income tax), and continued to work for the same company remotely in a part-time non-exempt consultant role (with the same W4/A4 exemptions). While I was in Alabama, I also had a role as an Adjunct Professor but this was all completed while in Alabama with normal tax deductions. In addition to my role as a Human Resource Leader, I have my own Human Resource Consulting and Professional Resume Writing company that I do a lot of 1099-contracting work with. Obviously this has not been taxed yet, and almost all of this income was earned after I moved to Florida. On top of all of that, I got married in September and my husband wants us to file jointly and he’s in the same boat as far as working in Alabama for a few months then working the rest of the year in Florida. Also, I do still own a home in Alabama and we own a home here in Florida.

    So my main questions are what all forms do I need to file and can I file an exemption from Alabama taxes from my Alabama employer in this new year since I am not a resident or would that result in my owning Alabama taxes at the end of next year.

    Thanks you so much!

    • Tax Advisor says:

      Hi Kayla,

      It sounds to me like when you moved from Alabama to Florida you stopped being a resident of AL and became a resident of FL. If that’s true, you will have to file a part-year resident return in AL. This will tax you on all of your income for that portion of the year that you lived in AL.

      If you remained a resident of AL even after you moved to FL, you will have to file a resident return in AL that taxes you on all of your income.

      Residency is often subjective (and I suggest checking the tax authority websites of the two states) but it sounds to me like you are now a FL resident and will thus have to file a part-year resident return in AL.

      If after you moved to FL you did not return and do any work in AL then you don’t have to worry about paying any AL tax. You will only owe AL tax on your income if you physically earned that income in AL. If all of your income after you moved was earned in FL then you don’t have to worry about paying taxes on it.

      As for your withholding, if you are now a permanent FL resident and aren’t going to return to AL then I don’t think there’s any reason to have AL taxes withheld from your paychecks.

      Given the complexity, I strongly encourage you to sit down with a tax professionals to really sort through this on a more specific basis. Also note that even if you and your husband file a joint federal return, you can still file separate state returns.

  131. Maria says:

    I’m a little confused and it doesn’t take much for that. :)

    I was involved in a car accident which caused me to relocate to Florida for recovery.I lived in FL for all of 2012. My employer is in DC, but at the time of the accident I resided in MD. MD income taxes were taken out of my paycheck in 2012.

    I did my taxes on TurboTax, but have not filed. I didn’t make much money less that $15K and only paid $115 in taxes but getting 10X that back from MD. How am I getting more money back from the state of MD than I paid in taxes. Does that sound right? I filed as a MD no-resident.

    • Tax Advisor says:

      Hi Maria,

      If you were a resident of Florida during that time you earned the money in question, and didn’t physically earn it in Maryland, then it makes sense that you should get back the Maryland tax that was withheld. But I agree it does sound surprising that you should get 10x that back when you’re a nonresident. You could try contacting the people at Turbo, but my guess would be that they’re probably correct.

  132. Gina says:

    Thank you very much for your time and will check out the link you provided. Have a nice day.

  133. Kyle says:

    HELP!!! Here is my situation. My wife and I own a home in Texas and she works there full time. There is no state income tax there. I have an apartment and work in Colorado that does have a state income tax. So, I have had state income tax being taken out of my pay for the entire year, but of coarse she has not. How do I go about filing for Colorado? Any help or direction is much appreciated.

    • Tax Advisor says:

      Hi Kyle,

      Where are you a resident? If you are a permanent resident of Texas, then you will have to file a nonresident return in Colorado that taxes you just on the income you earned in CO. But if you are a CO resident, then you will have to file a CO resident return that taxes you on all of your income. Do note that even if you and your wife file a joint federal return, you can file separate state tax returns.

  134. Neri says:

    Hi! We live in FL for the entire year of 2012 and I received unemployment money from Oregon for about 6 months. My husband works in Fl and we file our taxes as married filing jointly. How can we file our 2012 tax? Thanks!

    • Tax Advisor says:

      Hi Neri,

      Were you and your husband both Florida residents for all of 2012? If so, then you don’t have to file a resident state tax return because FL has no income tax.

      But you may have to file a nonresident return in Oregon. Did you receive that unemployment compensation because of an Oregon job? If so, it is considered Oregon source income and you need to file a nonresident return that will tax you just on this income.

  135. VANESSA says:

    HEY MY HUSBAND LIVES IN FLORIDA BUT WORKS IN ALABAMA AND THEY ARE TAKING OUT ALAMBAMA STATE TAXES. HOW DO WE FILE ARE INCOME TAX? AND WOULD WE HAVE TO PAY MORE TAXES TO ALABAMA ? AND WHEN WE FILE ARE TAXES WOULD WE GET THAT MONEY BACK THAT WE PAID TO ALABAMA?

    • Tax Advisor says:

      Hi Vanessa,

      Your husband needs to file a nonresident return in Alabama that will tax him on all the money he earned in AL. You may get some of that money back in the form of a refund, but it’s not guaranteed. Everyone owes taxes in the state where they live and in the states where they earn money (unless that state has no income tax, as is the case in Florida).

  136. Prabhu says:

    Hi,

    I am in IT and I live in NJ. My employer is also in NJ, Last Jan 2012, I got a job in NYC as a consultant, which is my workplace currently. So on my payroll, my NJ employer has been withholding/deducting only NJ State tax. When I file my taxes now, should I file for NYC taxes as well? Since I am only a consultant and my employer on my job profile shows is from NJ, I am confused here. The Client pays the Vendor (middleman) and the Vendor pays my Employer. I am a regular salaried employee with my Employer. Please advise.
    Also my wife is working in NJ and living with me in NJ. We have a 1 year old. Can she file her taxes with one dependent (family) and I file as a Single? or would you recommend us filing together to get a good return? Which would be legal, please advise.

    Thank you for your professional advice on this. Appreciate you doing it for everyone.

    • Tax Advisor says:

      Hi Prabhu,

      Since you live in New Jersey, you definitely need to file a resident return in NJ that will tax you on all of your income. But since you worked in New York, you will also need to file a nonresident return in NY. This will tax you just on the income that you earned in NY. Don’t worry, you won’t be double-taxed. You can claim a credit for the taxes you pay to the other state.

      As for your filing status, if you are married you cannot file as single. Either you and your wife can file together as married filing jointly or you can each file a separate return as married filing separately. Most people find it more advantageous to file as married filing jointly, but in very specific cases it might behoove you to file married filing separately. Do note that if you choose to, you and your wife can file a joint federal return and then separate state returns.

  137. Larry says:

    Hi,

    I work for a company based in NY. I moved here in CA from NY to work at the company’s warehouse. CA is now my home state. i am their only employee in California and they do not have a California Employers ID. They withhold NY Taxes on my income. I know i have to file a non-resident NY return, do i file a California return even though my employer doesn’t report my wages to CA?

    Thanks.

    • Tax Advisor says:

      Hi Larry,

      Yes you do. Since you are a resident of California you need to file a CA resident return that taxes you on all of your income. Since New York taxes were withheld from your pay, you are correct that you also have to file a nonresident New York return. Unless you are physically performing some of your work in NY, you might want to consider asking your employer to withhold CA taxes instead of NY taxes in the future.

  138. Bridget says:

    Hi,
    Can you please help me?! My husband works in Georgia but we live in Alabama. He made 26,600. It says we owe Alabama about $800 but getting a refund from Georgia (almost $700 b/c we had $1300 taken out in taxes and only owed 600). When I filed credit for taxes paid it said we still owe AL over $100 plus we don’t get anything from GA now. Basically they took that 700 refund from GA and put it toward AL and it left us with still having to pay just over $100 to AL….does it sound right? Does it seem I did everything right? I did AL as resident and GA as nonresident. Thanks so much if you can help me!

    • Tax Advisor says:

      Hi Bridget,

      It sounds like you did everything correctly. You filed as a resident in AL and a nonresident in GA which is exactly what you should have done. It sounds like what happened is that your husband only had GA taxes withheld from his pay when in fact you owe taxes to both GA and AL. You will end up owing roughly the same amount in taxes as someone who lived and worked in only one state, it’s just that your taxes will be divided between two states. At the moment, however, GA has been overpaid and AL has been paid nothing. What happens when you claim the credit for taxes paid to another state is that the state that was overpaid (in this case GA) decides to send some of that extra money directly to the state that was underpaid (AL) instead of having it go through you which would be a massive inconvenience of large refunds and large tax bills for you. $100 doesn’t sound like too large a withholding discrepancy considering this is over the course of the whole year. If you don’t want to deal with this situation next year you could ask your husband’s employer to withhold AL state taxes too, but it sounds to me like everything you did this year is perfectly fine.

  139. Melody says:

    Hi,

    In 2012 I worked and lived in Georgia, until July 7th. I moved to Texas and still am employed with the same company, working remotely from Texas. I just noticed that GA taxes have been taken out of my paycheck the whole time I’ve been living in Texas. I had never seen a pay stub until today when I logged in to get my w-2, thanks to direct deposit. I know I need to file GA state tax since I was a part-time resident, but should I be having GA taxes taken out if I don’t live there anymore? If not, how do I go about filing my taxes with this mistake? Thank You!!!

    • Tax Advisor says:

      Hi Melody,

      No, you should not be having Georgia taxes withheld from your pay anymore. The only circumstances in which GA should be withheld is if you are still a permanent resident of GA (which it doesn’t sound like you are) or if you are physically doing work in GA (which also sound like it is not the case).

      As for filing taxes this year, you will need to file a part-year resident return for GA. This will tax you on all of your income for the portion of the year that you lived in GA. Most likely, because GA taxes were withheld for 12 months when they really should only have been withheld for 6, you will get a fairly large refund. This isn’t guaranteed however, because I have no idea how many allowances you claimed on your W-4, what you tax liability is, etc. etc. but I would say that if all of your withholding was otherwise correct you can expect a fairly large refund – especially since you won’t have to file any income tax is Texas.

  140. Larry says:

    Hi Tax Advisor,

    I had asked my employer regarding that but they do not want to withhold taxes because they do not have California Employer #. (The nature of the company is warehousing. A 3PL company provides warehousing four our my employer and my job is to oversee the operations.)

    What are my options so I can force my employer to withhold CA taxes on my income?

    Thanks.

    • Tax Advisor says:

      Hi Larry,

      First I just want to note that things will probably end up working out given your current situation. New York will just have to pay the taxes withheld there to California since that is where you should be paying taxes. As CA and NY are both relatively high-taxing states it will probably work out. The major inconvenience for you is having to file a superfluous NY return you otherwise wouldn’t have to file.

      As for forcing your employer to withhold taxes I’m really not sure. You might want to contact the CA state tax authority about that one, or maybe a tax attorney.

  141. Dozer says:

    If you are a resident of New York but ONLY worked in Tennessee and Alabama, do you have to file INCOME Taxes in NY even though no income was earned there? I already realize I have to file INCOME Taxes, as a non resident, in AL and TN.

    • Tax Advisor says:

      Hi Dozer,

      Yes, you have to file a resident return in the state where you are a resident, no matter where you earned your income. So in this case you do have to file a New York return, assuming that you were actually a resident.

  142. Trever says:

    Hi Tax Advisor,
    I work in the Gulf of Mexico, the company I work for is out of Louisiana, and I am a resident of Florida. Since I am not working in a “State” but in international waters, how should I file ?

    Thanks

    • Tax Advisor says:

      Hi Trevor,

      The easy part of this question is your resident return. Since you’re a resident of Florida (which doesn’t have an income tax) you don’t have to file a resident return anywhere.

      The tricky part is figuring out whether you have to file a nonresident return in Louisiana. Since you aren’t physically earning your money in LA, but instead in international waters, it sounds to me like you don’t have to file a nonresident return in LA. But to be honest I’m not 100% sure. I urge you to talk to a local tax agent based in the gulf who deals with these sorts of situations frequently because honestly I don’t know.

  143. Barb says:

    My daughter (20 years old) worked as an paid intern for Disney in Florida from May 2012 to January 2013. Her residence is in New York state. 1- On her W-2 there are no state or federal taxes taken out. 2- Do her taxes get filed in Florida as a non-resident? 3-Does she have to file in New York ? Thanks

    • Tax Advisor says:

      Hi Barb,

      Your daughter is going to have to file a resident return in New York. Even though she worked in FL, the state where you are a resident (NY) has the right to tax all of your income, no matter where it was earned. However, she doesn’t have to file in FL because FL has no income tax. Since no taxes were withheld from her wages, it is likely that she is going to owe NY state some money, but this depends on how much she earned, your situation, etc.

  144. Worker in NJ says:

    Hi Tax Advisor,

    I moved to Texas in mid of 2012 and work for a company in NJ. Most of my work is remote and I go to NJ once in a month.
    Given that Texas has no state income tax what is my state tax liability?
    Appreciate your help. Great blog.

    Worker in NJ.

    • Tax Advisor says:

      Hi Worker in NJ,

      Your tax situation is actually a little tricky. Did you live in New Jersey before you moved to Texas? If so you will have to file a part-year resident return in New Jersey. This will tax you on all of your income for that portion of the year that you were a NJ resident.

      NJ also has the right to tax you on all income earned in NJ even if you are a nonresident. So you will need to file a NJ nonresident return that includes only the income you earned in NJ after you ceased being a resident.

      I was a little unsure about this (because it seems absurd that you should have to file two NJ tax returns) but I found this line in the return instructions: “Both part-year resident (NJ-1040) and part-year nonresident (Form NJ-1040NR) returns may have to be filed when a part-year resident receives income from New Jersey sources during the period of nonresidence.” Here’s the link if you’d like to dive in yourself: http://www.state.nj.us/treasury/taxation/pdf/current/1040i.pdf

  145. Karen says:

    My brother in-law lives in Maryland. His company just changed and they will no longer take out Maryland taxes but will now be taking out massachusetts taxes where they are no located. They gave him to option not to have them withhold any massachusetts taxes but said he should becasue he would get it all back..We have tried to research this but are no able to find the answer. He will still have to pay Maryland state taxes right?

    • Tax Advisor says:

      Hi Karen,

      Yes, if he’s a Maryland resident he still has to file a MD resident tax return that will tax him on all of his income. But since he has had Massachusetts tax withheld he will also have to file a MA return. Since he neither lived nor worked in MA, he doesn’t actually owe any MA taxes. But when he does his MD taxes, he can claim a credit for all of the taxes that MA withheld. Essentially what will happen is MA will transfer all of the taxes withheld there (where he has no tax liability) to MD (where he does). Your brother will only have to pay the difference (or receive a refund) for the difference between his MD tax liability and his MA withholding.

  146. Worker in NJ says:

    Hi Tax Advisor,

    Thanks for your help. I actually lived in New York before and commuted to NJ. For years I filed both tax returns (NY and NJ) and got NJ credit back in NY return.
    Now I moved to Texas in middle of last year.
    I know I have to file NY, NJ and Texas returns (May be not Texas not sure).

    with that information, can you please let me know what would be my tax liability?

    Thank you so much…

    Worker in NJ

  147. Working Remotely says:

    Hi

    My work address and residence address is in IL and hence my employer withholds IL tax on my paychecks. Also, note that I work from home. Now, I moved to SC and I am still working from home for the same employer. My employer is not aware of my move! Hence it is still IL tax being withheld on my paychecks. How and where do I file taxes? I don’t want to notify my employer because that might create issues with my employment.

    • Tax Advisor says:

      Hi Working Remotely,

      Did you move during 2012? If so, you have to file a part-year resident return in Illinois and a part-year resident return in South Carolina. Both will tax you on all of your income for the portion of the year that you lived in that state. Since you’ve only had IL taxes withheld and no SC taxes withheld, when you file your SC return, you will be able to claim a credit for the taxes you’ve already paid through withholding to IL. This will ensure you are not double-taxed. In this case IL will probably end up transferring about half of your withheld taxes to SC and you’ll have to pay (or receive a refund) for the difference between total liability and total withheld.

      In future years, you will have to file a SC resident return (in this entire answer I’m assuming you’ve become a SC permanent resident, btw) as well as an IL nonresident return. In this case, however, you won’t owe IL anything and you will have to file just so they can get that money back.

  148. Andrew says:

    What happens if I live in NY ( where taxes are Ridiculous) and then work for a month in Texas, where taxes are pretty much non existent but my company is taxing me on all the money as if I was in NY ???? Roughly for the month of work it only breaks out to be about 5000 but should I completely be getting taxed from NY ??

  149. Another Remote Worker says:

    I work from home full time for a company in Colorado. For 11 of the previous months of 2012 I lived in Utah.
    As of December of 2012 I have Moved to Missouri.
    My employer is taking out UT taxes, but will need to start taking out MO taxes is that correct?
    When I file taxes this year I will have to file in Both Utah and MIssouri and then file the MO 2012 FORM MO-NRI correct?
    Next year I should only have to file Missouri taxes?
    In December I notified them of my move but still they are taking out taxes for Utah instead of Missouri, What do I do next year?

    • Tax Advisor says:

      Hi Another Remote Worker,

      1) If you have become a Missouri resident (and by extension are no longer a Utah resident) then your employer should stop withholding UT taxes and start withholding MO taxes.

      2) Because you moved during the 2012 tax year, you will have to file a part-year resident return in UT and a part-year resident return in MO. As far as I can tell, it sounds like you have to file a normal MO return and then either Form MO-CR or Form MO-NRI. It actually sounds like you might need to file a MO-CR, but I’m not 100% sure. You definitely want to look into that more: http://dor.mo.gov/personal/nonresident/#complete

      3) Next year you have to file a resident return in MO. But because your employer is still withholding UT taxes, you will also have to file a nonresident return in UT. Don’t worry, you won’t have a UT tax liability, but you do have to file a return in order to get that withheld money back. It’s important to get them to start withholding MO tax so you don’t have to file two state returns in 2014!

  150. Viv says:

    I am paid as a contractor doing consulting onsite in California for a company that is based in Nebraska. MY pay checks have a Nebraska address on them. I live in Nevada that has no state income tax. MY W-9 has my Nevada address. Do I pay taxes on my consulting income in Nebraska because my employer is there or in California because that is the location that I actually do go to when I work. What about work I do from home and send in? is that taxed in Nevada ( e.g. not at all ) or in Nebraska because they pay me?

    • Tax Advisor says:

      Hi Viv,

      You are taxed by the state where you are a resident, and by any other states where you earn money. It doesn’t matter where your employer is located. In this case you don’t have to worry about Nevada because it has no income tax. You need to file a nonresident return in California on which you will pay taxes just on the income you physically earned in CA. The only scenario in which you would have to worry about Nebraska is if you had NE taxes mistakenly withheld from your pay. In this case, you would have to file a nonresident NE return just to get that money back.

  151. Joe says:

    I live in NJ and worked all of 2012 in SC. Only SC taxes were taken out (about $6,600.00).
    No taxes were taken for NJ. Am I going to have to pay BOTH NJ and SC ?

    • Tax Advisor says:

      Hi Joe,

      Yes, you will have to pay both New Jersey and South Carolina taxes, but you won’t be double-taxed. Here’s what’s going to happen. You need to file a resident return in New Jersey, which will tax you on all of your income. Then you need to file a nonresident return in SC that will tax you just on the income you earned in SC. When you file your NJ return, you will have to opportunity to claim a credit for the taxes that have already been paid to SC through withholding. SC will likely then transfer some of this money to NJ. Depending on your situation, it’s entirely possible that you could end up owing more when it’s all over (especially because NJ has relatively higher taxes) but you’re not going to be paying a full 2X as much as someone who just worked in one state.

  152. Jackson says:

    Hi. I live in Missouri, and might get this job in Kansas. I currently claim married with 4 dependents on my Missouri job right now, and get around $7,000. a year in federal return. And around $300. for state return. If I accept this Kansas job, would I still get a fair return at the end of the year after filing for Kansas and Missouri?

    • Tax Advisor says:

      Hi Jackson,

      First I should say that your state returns shouldn’t affect your federal refund. It should continue to be what it was (other things being equal). As for your state taxes, you will now have to file two returns but you won’t be “double taxed.” You will have to file a resident Missouri return like you always have. Then you will also have to file a nonresident Kansas return that taxes you just on the income you earned in KS. You will be able to claim a credit on each return for any taxes that were paid to the other state through withholding. Your overall state tax liability should be roughly the same, though this is not a guarantee.

  153. Coretha says:

    I lived in and worked in Virginia in 2008 & 2009, upon leaving North Carolina in 2006. I filed taxes for Virginia, however I never changed my Driver License and I voted in North Carolina in the 2008 election. Now, NorthCarolina is coming after me for NorthCarolina taxes for 2008 & 2009 for those reasons. Is this legal?

    • Tax Advisor says:

      Hi Coretha,

      Yes a driver’s license and a voter registration are two of the major determinants of residency. Ultimately it’s a subjective decision. The tax authority of both of these states should list the sorts of things that determine residency. I would take a look at their requirements and see if there’s anything that can more conclusively prove that you were a resident of VA and not of NC. But just based on what I know I would say they can make a fairly strong case that you never really became a resident of VA.

  154. sally says:

    Ok-this could be complicated. We live in California but my husband may take a job in Seattle. It is a high income position (over $1,000,000). We’d live in Washington state full time with our high school child and our other two children go to college in California (we do not need residency for their colleges). We would like to keep our home in California (we would buy another one in Washington state) and use it possibly as a vacation home for the few months of summer. California is our home and we have every intention of “retiring” here. But will be gone indefinitely for the next 10 years. We have a friend (pro athlete) who did the same thing and CA IRS came after him for not claiming residency (even though he lived and worked in Illinois for 9 months of the year) since he was planning to reside in CA when he retired (at age 32). It cost him a significant amount. We just want to make sure that we will no longer be CA residents. I read through the CA tax literature but couldn’t find an answer to this kind of problem with this income. Thanks.

    • Tax Advisor says:

      Hi Sally,

      If you’ve been doing a lot of research you’ve probably already seen this publication, but it’s all I can point you to: https://www.ftb.ca.gov/forms/2011/11_1031.pdf. Unfortunately, the determination of residency is subjective and if the state disagrees with you (as you know) the consequences can be bad.

      I would say that if you spend the majority of the year in Washington, that’s where your high school aged child is, you get a WA driver’s license, register your vehicles there, register to vote there, etc. that you would be a WA resident. All of this is complicated by the issue of “intentions,” but I don’t think an intention to retire in CA ten years from now is enough to keep you a resident of CA for a decade when you’re living somewhere else.

      Take a look at Example 5 under Leaving California. I know you’re keeping your home in CA, but I think of all the examples, that’s the one most analogous to your situation. And in that case they were only part-year residents of CA.

      Since there’s a good deal of money involved I would check in with a CA-based tax agent just to have a clear answer from a tax professional on the ground.

  155. Sandi says:

    My son moved to Texas for a job. He lived and worked there for 8 months, quit the job and moved back to Mi. Since Texas has no state tax, does he have to file state taxes in Michigan, even though he was living in Texas at the time?

    • Tax Advisor says:

      Hi Sandi,

      It depends on whether he became a Texas resident. Even if he did, he’s still going to have to file a part-year return in MI because he was a MI resident for some of the year. My guess is that eight months is not long enough to become a TX resident so he’s probably just going to have to file a MI return.

  156. Cristie says:

    I moved to Florida from Arizona in February of 2012. I continue to work (remotely) for my Arizona employer. I understand I have to file a part year resident return for AZ. I don’t know if I need to include the entire amount earned in 2012 or only the State Wages indicated in box 16 of my W2. My employer only took out AZ state tax for the time I actually resided in AZ.

    • Tax Advisor says:

      Hi Christie,

      When you file a part-year resident return, you get taxed on all of your income (no matter where it was earned) for that portion of the year that you were a AZ resident. So that may correlate to the state wages on your W-2, but it may not, especially if you earned money in a different state while you were still a resident of AZ. Or if your employer continued to withhold AZ taxes for part of the year after you moved to FL.

      Also note that on most state returns you’ll also have to include your total AGI (even though you won’t be taxed on the whole thing) just to determine your eligibility for certain state credits etc.

  157. Mi says:

    Tax Advisor,

    I worked and lived in California for part of the year and then moved and worked in Texas in 2012 for the rest of the year. California has a state income tax and Texas does not. When I file my state income taxes for California, will I need to report the amount of money I earned while working in Texas or just the amount I earned while working in California? Thanks for your help.

    • Tax Advisor says:

      Hi Mi,

      Were you a California resident? If so, you will need to file a part-year resident return in CA that taxes you on all of your income (no matter where it was earned) for that portion of the year that you were living in CA.

      If you never became a CA resident, you will have to file a nonresident return that taxes you just on the income you earned in CA.

  158. Cassie says:

    My brother has lived in DC for 2 years now with the Military, NON Active for the year 2012. His home resident state is Ohio. DC as you know does no state taxing, they have not taken out any state taxes for Ohio, but on his W2 they report state wages, which is causing him to owe the State of Ohio over $680. How exactly do I go about filing his return? He has been in the Navy for 6 years now and this is the 1st year this has happen.

    • Tax Advisor says:

      Hi Cassie,

      I just want to start off by warning you that I’m not overly familiar with military tax issues, so your brother might want to talk with a tax agent who is. That being said, according to the Ohio Department of Taxation, Ohio residents who serve in the military ARE subject to Ohio income tax. However, military servicemembers who are stationed outside Ohio are eligible for a deduction of military pay received for active duty service while stationed outside the state. So it sounds to me like your brother shouldn’t owe that much money, but you can take a look at the requirements here to see if he’s eligible for that deduction: http://www.tax.ohio.gov/ohio_individual/individual/military_service_ohio_taxes_deduction.aspx

  159. Kim R says:

    Ok, so I am totally confused and I think my work has goofed things up for me. I live in PA and work in NY. They do not have a reciprocal agreement between them and for almost four years I had only NY state taxes payroll deducted throught the year. I was then advised by my HR office that there was a form I could sign that would stop NY taxes from bring deducted and they would begin deducting PA state taxes out of my paycheck instead. Now on my W2 I have about 6mths of NY state taxes that were deducted and another 6mths worth of PA state tax that was deducted. There are other employes that also work here but live in PA and most of them also have this arrangement to only have PA state taxes deducted from their pay checks as well. Is this a smart move and is it ok to have made this change???? How exactly do I files taxes in this situation?????

    • Tax Advisor says:

      Hi Kim,

      I think the H&R people are probably correct that you should have taxes deducted for the state where you live, but I don’t think it’s going to make a terrible amount of difference. When you file this year, you will need to file a resident return in PA and a nonresident return in NY. On each of these returns you will have the opportunity to claim a credit for the taxes that were withheld by the other state. The states will then settle up between themselves (NY will transfer some of that money to PA or vice versa). You will then end up getting a refund if your total withholding was greater than your total liability or end up paying somewhere if the situation is reversed.

  160. KC says:

    What if I lived in IL for January through September. Then permanently moved to WI in October. I have not worked since September and have no WI income yet. Do I just need to file a IL state tax form since 100% of my 2012 income was from IL, even though I lived in WI for 3 months.

    • Tax Advisor says:

      Hi KC,

      You need to file a part-year return in IL that will tax you on your total income for that portion of the year that you lived in IL and a part-year resident return in WI that will tax you on your total income for that portion of the year that you lived in WI. If all of your income was for during the IL period then your WI liability will be very small, if it exists at all.

  161. Ron says:

    I have a potential lucrative job prospect in FLA. I dont want to relocate my family from MI (especially since my wife has a job and my child has not finished HS) until I know I really like the job. For 2013 I would work in FLA living in apt and work on establishing residency in FLA. I would keep my family in MI and visit every month. Would it be better to declare FLA as my state of residency when I have established residency in FLA and make MI my nonresident state? I would not have to pay state taxes in FLA and just pay property taxes in MI. In a couple of years I would move wife down to FLA and then our main state would be FLA. Does this make sense?

    • Tax Advisor says:

      Hi Ron,

      Yes it does make sense, although note that for 2013 you would have to file a part-year resident return in MI for the portion of the year that you were still a resident there. The one thing I would caution you about is that residency isn’t quit as simple as “declaring” yourself a resident somewhere. It’s considerably more subjective. You would certainly need to get a FL driver’s license, register to vote there, etc. Be sure to investigate the residency requirements for each state to make sure you are decidedly a FL resident.

  162. alex says:

    we live in CA, own a house and everything. my wife is a stay home mom, she has no income. I work for this company that is based in VA, and so i have a VA tax withheld from my pay check…

    i go to VA for 4 weeks stayed in a hotel, then go home to CA for 2 weeks, then go to VA again for 4 weeks, then go home again for 2 weeks, and so on and so fort…

    Do i have to pay taxes on both states… how do i file my return in VA (non resident?)…

    • Tax Advisor says:

      Hi Alex,

      Yes you will have to file in both states. You should file a resident return in California that taxes you on all of your income. Then you will have to file a nonresident return in Virginia that taxes you just on the income you earned in VA. Because VA taxes are being withheld from your paycheck, you will be able to claim a credit on your CA return for taxes paid to another state. Hopefully VA will transfer some of this money to CA.

  163. wayne says:

    I live in missouri an i am currently working in florida. can i have missouri state taxes taken out of my check.

  164. J C says:

    I live in NYC (Bronx) but my company is Miami, Fl. When I file my state taxes do I file as a full time resident or a part time resident. And am I required to pay state taxes if my money is made in Fl and not NY?

    • Tax Advisor says:

      Hi JC,

      If you lived for the entire year in New York (and did not moved sometime during 2012) then you only have to file as a resident in NY. It doesn’t matter where your company is located – and Florida doesn’t have a state income tax anyway.

  165. Maureen says:

    My employer is located in Delaware, and I was a resident of Delaware until August 15th, 2012. I commuted into the office then.

    On August 15th, I moved to Pennslyvania and began working 100% from my home office for the same Delaware company.

    I’m so confused about the state returns – A coworker mentioned to me on the side that working from a home office in PA for a DE company means I don’t pay any state taxes, but taxes are still withheld from my pay checks (DE for first half of year, PA once I moved).

    Any help?

    • Tax Advisor says:

      Hi Maureen,

      For 2012 you have to file a part-year resident return in both Delaware and Pennsylvania because you moved in the middle of the year. Next year (2013) when you are living entirely in PA, you will only have to file a PA resident return.

  166. LH says:

    I recently took a position in NJ, but am only there Monday -Thursday, and travel back to my permanent home in Tennessee on the weekends. I don’t plan on changing my address to my temporary one in NJ. I am being taxed on the income I make in NJ. Will my company force me to change my address to a NJ address? TN does not have a state tax, and I really don’t care about paying NJ tax on the income earned, but I don’t want to change my residency to NJ. Please help.

    • Tax Advisor says:

      Hi LH,

      I don’t see how your company can force you to change your address. If your permanent address is in Tennessee you are correct that you won’t have to file a resident return because TN has no income tax. You are also correct that you will have to file a nonresident return in NJ that taxes you on the income you earn in NJ. But I don’t see why your company would force you to become a permanent resident of NJ.

  167. Tom says:

    Hi Tax Advisor,

    I recently got married in the summer of 2012 and my wife and I currently are renting in New Jersey. I still work in New York and have residence in New York on my W2. I understand its not a problem to file jointly on our federal tax return paperwork. But as far as state Returns go what is our best option for filing since I still technically work and reside in New York and she works and resides in New Jersey.

    • Tax Advisor says:

      Hi Tom,

      Even if you file a joint federal return you two can file separate state returns. It sounds to me like you would file a resident return in New York and she would file a resident return in NJ.

  168. Deanna says:

    I am responsible for payroll at a seaonal, family business in Washington. One family member lives in Hawaii, but works in Washington a few weeks per year for this business. As the employer, am I to withhold Hawaii state income taxes from his paycheck?

    • Tax Advisor says:

      Hi Deanna,

      I’m not sure if you as an employer are required to withhold Hawaii taxes from his pay, but if he’s a HI resident, he certainly has to file a resident tax return in HI. Thus it wold be beneficial to him if you withheld HI taxes.

  169. Tracy says:

    I live in California and my employer withholds California State income tax for the entire year I worked. However, I spent 73 nights in Washington State on business. State of WA is Zero income tax. Can I get a tax credit back for those 73 nights I was in State of WA meanwhile the income tax in State of CA was withheld?

    • Tax Advisor says:

      Hi Tracy,

      As a resident of California, CA has the right to tax all of your income no matter where it was earned. So you can’t get any credit just because you did some of your work in Washington.

  170. Julia says:

    Hello,
    My permanent address is in California but I attend graduate school in NYC. I just got a part time job and am wondering if I fill out my tax forms with my apt info in NYC or will I only have to pay CA taxes.
    Will I have to pay taxes for both?
    Thanks

    • Tax Advisor says:

      Hi Julia,

      It all depends on where you are now a permanent resident. If you are still a resident of CA then you will have to file a CA resident return that taxes you on all of your income no matter where it was earned and a NY nonresident return that taxes you only on the income you earned in NY.

      If you are now a permanent resident of NY, you only have to worry about filing a NY resident return.

      That being said, you don’t necessarily need to have taxes withheld for both states. As long as one of them are being withheld (probably NY) you’ll be fine. If you do end up needing to file a CA return, you’ll be able to claim a credit for the taxes you paid to NY through withholding.

  171. Players1 says:

    I work from my home in Florida. My company has no physical presence in Florida. I do not spend anytime in New Jersey and work exclusively from my home in Florida. The company is based in New Jersey. Currently, I am being w/h NJ taxes as a Non-Resident from my salary. I am getting some guidance which tells me that I s/b exempt from NJ w/h if my company applies for a Florida Unemployment ID#.

    Is it possible to confirm my findings and also direct me how I would be able to have last year (CY2012) NJ tax w/h returned to me

    Thank You in Advance.

    • Tax Advisor says:

      Hi Players1,

      You are correct that you should not be paying New Jersey tax. As long as you are a permanent resident of Florida and you physically do all of your work in FL you do not owe any state taxes. You should probably ask your company if they can stop withholding NJ taxes from your paycheck. As for your 2012 taxes, you will need to file a nonresident NJ return just to get the money that was withheld back.

  172. Keith C says:

    I am from Louisiana (own a permanent residence) but working in Ohio (indefinitely), the company I work for is from Louisiana and is withholding Louisiana taxes. My job was initially temporarily displaced to Ohio, but now appears to be a more long term. Should I have my taxes withheld and paid in to Ohio? My tax consultant told me that as long as I do not change my permanent residence then my current situation is fine, is this correct?

    Also, if I change my driver’s license to Ohio, does that mean that I forfeit my Louisiana residency even though I own a permanent residence there?

    • Tax Advisor says:

      Hi Keith,

      Residency is a little more complicated than just where you own a permanent residence. You can take a look at the Ohio requirements of residency here: http://www.tax.ohio.gov/ohio_individual/individual/residency_status.aspx.

      If you were a resident of Louisiana all year, then you have to file a resident return in LA and a nonresident return in OH. If you are an OH resident then you only have to file an OH resident return (unless you earned money in LA). Ideally you should have taxes withheld wherever you are a resident. Changing your driver’s license doesn’t “forfeit” your residency in LA, but it is strong piece of evidence that can be used by OH to prove that you were in fact an OH resident and should pay resident taxes.

  173. tanessa says:

    I live in illinois but work in iowa. I was told im suppossed to be getting illinois tax taken out by h&r block. My bosses say im suppossed to take out iowa.

    • Tax Advisor says:

      Hi Tanessa,

      Ultimately I don’t think it makes that much difference, as long as you’re having taxes withheld somewhere. You probably know you have to file a return in both Illinois and Iowa, and you will be able to claim a credit for the taxes you’ve paid to the other state through withholding. H&R is probably right that it’s better to have taxes withheld from the state where you are a resident.

  174. Marc K. says:

    In 2010 I did some consulting work for a client in Indiana, but Utah is residence. When I did the work I was physically in Indiana. Do I need to file an amended return with Utah and pay the taxes to the Indiana Dept. of Rev? Just discovered this and I want to be on the level with my filings. Thank you.

    Regards,
    Mark

    • Tax Advisor says:

      Hi Marc,

      I don’t think you necessarily have to file an amended return with Utah, but you definitely need to file a nonresident return in Indiana and report all of that income that you earned in IN.

  175. Paula says:

    Hi. I have been a resident of Illinois for several years, and I have worked in Missouri.I have been filing Illinois (resident) state income tax returns and Missouri (non-resident) returens. In 2012, I only lived in Illinois and worked in Missouri during January.
    I moved to Texas on January 30th. 2012. I worked part of the year in Texas and a few weeks in Colorado. Will I need to file Illinois, Colorado and MIssouri returns as a non-resident?

    Thanks

    • Tax Advisor says:

      Hi Paula,

      You will need to file a part-year resident return in Illinois that taxes you on all of your income for that portion of the year that you were an IL resident.

      Then you will need to file a nonresident return in Missouri that taxes you just on the income you earned in MO. Then you will need to file a nonresident return in Colorado that taxes you just on the income you earned in CO. Be aware though that some states have income thresholds below which nonresidents don’t have to file a return. Check out the websites of the tax authorities for both of these states to make sure you have to file.

  176. Kris Kirchgessner says:

    I have a question regarding state income tax. My husband accepted a job in AL, moved and started working Feb 2012. I stayed behind in GA for about 35 days to re-lease the house we were living, and then joined my husband. He lived in a hotel until I and our household goods arrived in AL. His company withheld income tax for GA until we rented the new AL house. We moved into our new home March 30, 2012. So do we owe GA that one month’s salary, even though it was earned and he lived, in a hotel, in AL? I didn’t work in GA. so we generated no income in GA during that time period. Thanks so very much!

    • Tax Advisor says:

      Hi Kris,

      You have to file two tax returns here: a Georgia part-year resident return and an Alabama part-year resident return.

      For the portion of the year that you were still a GA resident, GA has the right to tax ALL of your income no matter where it was earned. So the company was correct to withhold income tax for GA until you both moved into your new permanent residence in AL because you were still GA residents at the time (even though that income was earned in AL).

      So when you file your returns, your GA return will basically tax you on all of your income from Jan. 1 to March 30. Then your AL return will tax you on all of your income from March 30 to Dec. 31.

  177. kathryn courtney says:

    My daughter lives here in N.J. but worked for a short time in Florida. I know Florida has no state income tax, but does N.J. require her to pay state taxes on her earnings from Florida.

    • Tax Advisor says:

      Hi Kathryn,

      If she was a resident of New Jersey that whole time, then NJ has a right to tax her on ALL of her income, no matter where it was earned. So yes, she NJ will tax her on the income she earned in FL.

  178. Jeanne says:

    Hi,
    I lived in NY for the first 6 weeks of 2012 then moved to NV. I work from home for a company located in NY. I know NV has no state income tax. I am wondering what I have to do as far as filing taxes in NY. My employer stopped taking NY taxes out of my paycheck after I moved to NV. He said I didnt have to pay NY taxes anymore since I moved. Is it true that I only have to pay taxes on the money I earned in NY for those first 6 weeks of 2012?

    • Tax Advisor says:

      Hi Jeanne,

      Yes, it’s true. You have to file a part-year resident return that will tax you on all of your income for the portion of the year that you were a NY resident (those first six weeks). But after you moved to Nevada, you don’t owe any NY tax on that income as long as you didn’t physically do any work in NY.

  179. WVOHKYQuestion says:

    I live in and am a full time resident of West Virginia, work at a central office in Kentucky, and paid by a company headquartered in Ohio. In 10 years I have never filed a Kentucky non-resident form, but this year’s tax software wants me too. My paycheck deducts WV taxes and local municipality (KY) taxes. The latter are recovered through a form submitted to the city clerk’s office. Do I really have to file a non-resident form even if the company is already charging the right state the taxes?

    • Tax Advisor says:

      Hi WVOHKYQuestion,

      You need to file a resident return in the state where you live and a nonresident return in every state that you earn money.

      In this case, you need to file a West Virginia resident return that will tax you on all of your income no matter where it was earned. However, because you work in Kentucky you also need to file a nonresident KY return that will tax you only on the income you earned in KY. You probably should have been doing this the entire time you worked in KY.

  180. Pete says:

    I live in New York. I worked the entire year 2013 in Massachusettes. All my deducted state tax went to Mass. I did not pay any taxes into NY. I do not own my home, I rent. I’m short form tax return, no itemized deductions, standard only. Do I fill out 1 form for NY? Or for Mass? Who do I pay my taxes to at the end of all this? Can I use all the taxes I paid into Mass for both states if I need to pay both? Thank you.

    • Tax Advisor says:

      Hi Pete,

      I’m going to assume that since you live in New York that you are a NY resident. In this case, you will have to file a NY resident return that taxes you on all of your income no matter where it was earned. You will also have to file a nonresident return in Massachusetts that taxes you only on the income you earned in MA. When you file your NY return you will be able to claim a credit for all of the taxes already paid to MA through withholding and the two states will likely divide that amount among themselves.

  181. David says:

    (Working in Kansas City, Kansas and Living in Kansas City, Missouri)

    Hello Tax Advisor,

    I see that this topic was covered addressing Jackson, but I would like to obtain my own definitive answer as well. Thank you in advance.

    - I will be working in Kansas City, Kansas, but live in Kansas City, Missouri. From what I have gathered I will receive a state income tax credit from Missouri via MO-CR (http://dor.mo.gov/forms/MO-CR_2011.pdf) and will not be liable for those taxes. I will only pay income taxes to Kansas. Is this correct?

    - Are there any factors that would lead to me being taxed at a full rate in both states?

    - What if I work for an employer which is based out of Missouri, but am moving to a satellite facility in Kansas?

    • Tax Advisor says:

      Hi David,

      Let me preface this answer with the disclaimer that this is not a ‘definitive’ answer. I recommend speaking to a tax professional who can look at your entire financial situation for a definitive answer.

      That being said, you do need to pay taxes in both Missouri and Kansas.

      First of all, you need to file a Missouri resident return that will tax you on all of your income no matter where it was earned. Then you will also need to file a nonresident return in KS that only taxes you on the income you earned in KS. Where your employer is located has no bearing on where you are taxed.

      Don’t worry, even though you need to file taxes in two states you won’t be ‘double taxed.’ That’s because you will be able to claim a credit for the taxes paid to the other state through (that where MO-CR comes in). What this means is that the taxes you’ve already paid through withholding will be distributed among the states and then you will have to pay the difference if one of them didn’t get it’s share. It does not mean that you won’t be liable for taxes in MO. If you were a resident there you are liable to MO taxes.

  182. kai says:

    I live in Georgia and been working there since July 2012. Prior to that I was recieving unemployment form Florida due to my spouses military relocation to Georgia. We are filing married jointly. Georgia says we owe state tax, I’v been only working there for a few months and the unemployment compensation was from a Florida. Why is that?

    • Tax Advisor says:

      Hi Kai,

      If you are now a Georgia state resident and became one in July then you owe GA taxes. You have to fie a GA resident return that taxes you on all of your income no matter where it was earned.

  183. RAPA says:

    Hello,

    I founf this forum very useful. I thought some one can answer my query.
    I live in seattle, WA. i work in IT consulting. my payroll runs on company address ( NY) and TAX was withheld based on NY TAX rates. I temporarily got an project accomodation in NJ ( client place) instead of staying at hotel. but I still travel to WA every week.
    ideally TAX should be deducted as per WA state ( where there is no income TAX), but TAX was withheld as per my company’s address.

    Now, i am wondering how should i file the return and get the TAX paid to NY state. I was not staying any NY anytime and i am paying the TAX to NY of no purpose.

    Can someone Kindly help with my situation.

    Thank you
    RAPA.

    • Tax Advisor says:

      Hi RAPA,

      If NY tax was withheld then you need to file a NY nonresident return in order to get that money back. However, it sounds like you were in NY or NJ at some point during the year. Remember that even though Washington has no income tax, you still need to file a nonresident return in any state where you earned money.

  184. Daniel G. says:

    I live in Missouri and work in Missouri. My wife lives in Oklahoma and received disability benefits there. We filed our federal return Married filing jointly. Will we need to file both a MO and an OK state return? Do we only include my wages on the MO and her disability on the OK?

    • Tax Advisor says:

      Hi Daniel,

      In this case you and your wife should probably look into filing separate state returns (which you can do even if you filed a joint federal return). You would file in MO and she in OK.

  185. Ron says:

    Live in Arkansas and work part-time in California. Does California send all my state income tax to Arkansas or keep part of it? and does arkansas send part of the tax withheld back to me?

    • Tax Advisor says:

      Hi Ron,

      Based on what you’ve said I have no idea where taxes are being withheld, but you will definitely owe taxes in Arkansas (on all of your income) and in California (on the income you earned there). What will likely happen is that the state for which taxes have been withheld will transfer some of that money to the other state after you file. Whether you get a refund depends on whether your total withholding was greater than your total liability.

  186. Rafal says:

    Hello,
    I live in NY and work in NJ. My employer is deducting from my check NY local tax and NJ state tax only but doesn’t take out for NY state tax. Are they required to take out for NY state tax also? Last year I had to pay a lot of money in April for NYS because they didn’t take out . I asked them to do it many times, but they don’t want to change anything on my payroll. Thank you

    • Tax Advisor says:

      Hi Rafal,

      I don’t think they have to take out New York state tax, but it would probably be more convenient for you. Also remember that when you file your New York return you will be able to claim a credit for taxes paid to New Jersey, which should transfer some of this money to NY. However, if only enough taxes are being withheld to cover your nonresident liability in NJ, then you will have to cut a check for NY when you file your taxes.

  187. Donni says:

    In 2012 I was a student in FL, where I also worked all year. I am still a permanent resident of SC, but did not earn any income in the state.

    I began a SC return, and I have $0 of SC taxable income. Do I still need to file just for records?

    • Tax Advisor says:

      Hi Donni,

      The state where you are a resident (in this case South Carolina) actually has a right to tax ALL of your income, no matter where it was earned. So likely you will end up paying tax on what you earned in Florida. In short, yes you need to file a resident SC return.

  188. Marilyn says:

    Hello Tax Advisor!

    I am a resident of HI. In 2012 I lived in HI till Oct 12. I live in VA from Oct 13 till the end of 2012. My job is in DC which I started on Oct 22. I pay VA tax. This is a permanent move.

    I understand I will file in HI as resident, VA as non resident. Do I have to file DC tax too?

    Thank you in advance.

    • Tax Advisor says:

      Hi Marilyn,

      If you moved permanently from Hawaii to Virginia during 2012 then you need to file a part-year resident return in HI and a part-year resident return in VA. Each return will tax you on all of your income (no matter where it was earned) for that portion of the year that you were a resident. You do not need to file a return in DC.

  189. Andrew says:

    Hi,

    I have lived in New York City for 5 years. During the past 68 weeks, I have traveled to Chicago every Monday morning for work and have returned back to NY every Friday evening. Which state should I be filing tax returns for? My w2 shows withholding for both New York and Illinois.

    • Tax Advisor says:

      Hi Andrew,

      It sounds like your employer pretty much got things right with your withholding. Since you’re a New York resident, you need to file a NY resident return that will tax you on all of your income no matter where it was earned. Then you will need to file an Illinois nonresident return. This will tax you only on the income you earned in IL. When you file each return, you will be able to claim a credit for taxes paid to the other state (through withholding in your case). If there’s any discrepancies in your withholding the states will settle up among themselves.

  190. Todd says:

    Dec 1, 2011 I was laid off from a company that had just moved its operations to Colorado and shut down its MN office where I worked and lived. I had already been spending much of the year working remotely from our home in FL so was able to switch our residency to FL effective Jan 1, 2012. In Feb 2012 I finally got my severance and vacation pay and also started getting MN unemployment insurance payments about that same time. Due to some medical issues later in 2012 I ended up deciding to try retirement so didn’t work at all in 2012 after unemployment ran out. My wife also got disability payments throughout all of 2012. Do I need to file any state taxes?

  191. Tim says:

    I live in Louisiana but worked all last year in TX, a non taxing state. Doing my taxes, it is telling me I owe almost $4000 in La taxes. how can that be? I earned -0-  in La last year.

    • Tax Advisor says:

      Hi Tim,

      The state where you are a resident has the right to tax you on ALL of your income, no matter where it was earned. So yes, if you are a LA permanent resident you need to file a LA resident return. You should talk to your employer about having LA taxes withheld from your pay.

  192. alex says:

    hi tax advisor,

    I am a resident of CA, but working in VA….
    my family stays in CA, and i travel to VA. i stayed in VA 4 weeks then i go home for 2 weeks. then back to VA 4 weeks then home again 2 weeks. and thats the routine…
    my wife is not working, so we only have one income….

    i have VA tax withheld in my paycheck and zero tax withheld in CA..

    i was told that i have to file CA resident and VA as non resident. And I did that.

    I used turbo tax and the result was…. I get a refund from VA of $5,456 ($6,656 was withheld). and I have to pay CA $3,808…

    is this correct? How come Im not getting back all the amount that i paid in Va?

    • Tax Advisor says:

      Hi Alex,

      This sounds correct, but I can’t tell you if it’s absolutely correct because I don’t know all of the particulars of your situation. You aren’t getting all of your money back from Virginia because you owe VA some tax. You don’t just owe money to the state where you are a resident, you also owe money to any other state in which you earned income. So in this case you owe VA the difference between your withholding and your refund.

  193. Misty says:

    I live in Texas and will be working from home for my family’s construction company. Should I be placed on payroll and how will that work when it comes to filing taxes? or should I do it by means of 1099?

  194. Michael says:

    If I live in Nevada and work remotely for a company based in New York, do I have to pay state income tax to New York?

  195. alex says:

    I live in CA but worked in VA, i have Va tax withheld from my paychek. my wife has no income.
    I was told that I have to file Ca resident return and Va non resident return…

    when i was doing my tax using turbo tax i encounter this question;
    OTHER STATE TAX CREDITS
    SELECT THE STATE TO WHICH YOU PAID TAX
    note: CALIFORNIA RESIDENTS CANNOT CLAIM THIS CREDITS IF ITS TAX YOU PAID TO: ARIZONA, DISTRICT OF COLUMBIA
    (UNLESS YOU ARE DUAL RESIDENT), GUAM, INDIANA, OREGON, or VIRGINIA(UNLESS YOU ARE DUAL RESIDENT).

    WHAT IS THE MEANING OF “DUAL RESIDENT).

  196. Mike says:

    Hey so I live in Idaho and I worked in North Dakota. I filed my taxes through a tax man and he filed my taxes for both states. I got taxed huuuugee. I was wondering if that is right or wrong way to file?

    • Tax Advisor says:

      Hi Mike,

      You should have filed an Idaho resident return and a North Dakota nonresident return. Whether or not you get taxed huge depends on how much taxes were withheld from your pay over the course of the year.

  197. Michael says:

    I live in Nevada and work there remotely for a company based in New York. Do I have to pay taxes to New York?

  198. bill says:

    I am a resident in PA and will work for a new company in FL at the end of this month. Do I need to pay PA state tax for my income in FL if I move to FL? Thanks.

    • Tax Advisor says:

      Hi Bill,

      As long as you are a Pennsylvania resident you need to pay PA taxes on all of your income no matter where it is earned. If you move to Florida and become a permanent FL resident then you will no longer owe PA tax.

  199. bill says:

    I have one more question. I am a resident in PA, and will work for a new company in FL at the end of this month. I will have a business trip to China for most of this year. I wonder if I need to pay PA state tax. thanks.

    • Tax Advisor says:

      Hi Bill,

      I’m not 100% sure about this one, so you may want to contact the PA Dept. of Revenue or a PA-based tax adviser, but I’m pretty sure that if you’re in China for only a fixed period of time, after which you return to PA, you are still a PA resident. This means you still have to file a PA return and pay taxes on all your income. However, when you file your return, you may be able to claim a credit for taxes paid to China on income earned there.

  200. Sherry says:

    I just got out of the military from being active duty in KY in July 2012. I now live in TN and draw unemployment from KY since I worked in KY. I still paid taxes in NC since I still have my residency there. I never changed it but I live in TN and have never changed my residency. I know I am being double taxed. Will I get a refund from being double taxed? I know it’s confusing. I hope u can help me understand. Thank you.

    • Tax Advisor says:

      Hi Sherry,

      First off, if you are living permanently in TN you should consider changing your residency to TN. But if you are still a permanent resident of NC you need to file a resident return there. I’m not sure whether you have to file a Kentucky return. Often states don’t require nonresidents to file a return for military pay or unemployment, but I would check with the state Dept. or Revenue or your tax preparer. Even if you do have to file two state returns, you won’t be ‘double taxed.’ You should be able to claim a credit for taxes paid to the other state.

  201. Anna says:

    Hi,
    I am a graduate student earning a stipend and scholarship in Pennsylvania (I get both a W-2 and 1098-T), but still have my permanent address listed as Maryland where my parents reside. The 1098-T lists my MD address and my W-2 lists my address of residence in PA. Do I have to pay both MD and PA taxes on the stipend I earn?

    • Tax Advisor says:

      Hi Anna,

      If you’re still a Maryland resident, you have to file a MD resident return that will tax you on ALL of your income, not matter where it was earned. Since you are earning money in Pennsylvania you also have to file a nonresident return in PA that taxes you only on the income you earned in PA.

  202. Christian says:

    I live in Louisiana. I work in Louisiana. Yet, this company whose address is listed in California listed Georgia as the state and paid Georgia taxes. (Did not work or live in Georgia). Also, the state wages were significantly higher than the federal wages. Not sure exactly what is going on and of course payroll keeps routing me to voicemails. What should I do?

    • Tax Advisor says:

      Hi Christian,

      You know you are going to have to file a Louisiana resident return since you live in LA. However, you will also have to file a Georgia nonresident return in order to get back the tax that was withheld from you. Hopefully, GA will transfer the taxes withheld to LA or just give you a big refund with which you can pay your LA bill. Make sure to talk to your HR dept. to get them to stop withholding GA taxes.

  203. Alessandra says:

    Hi,

    my employer is in California (Stanford University) and I live and work in Pennsylvania. My employer is withholding CA state taxes.
    How do I file taxes? Do I have to file in both states? Can I pay only CA taxes or do I need to pay PA taxes?
    Thanks!

    • Tax Advisor says:

      Hi Alessandra,

      You need to file a Pennsylvania resident return since you live there. This will tax you on ALL of your income. Then you also need to file a California nonresident return. Based on your description of your situation, you shouldn’t actually owe any CA tax, but since it’s been withheld you need to file in order to get that back. You should consider asking your employer to withhold PA tax instead of CA tax in the future.

  204. Dixie says:

    Hi,

    I tried to read through the thread and figure my question out, but I wasn’t able to find out all of the information, so here goes! My husband is active duty Army, and we are stationed at Ft. Campbell, Ky. I now work in Tennessee, where they have no state income tax, I live in Kentucky, where they do have state income tax, and I am still a legal resident of Louisiana. We have no plans to become legal residents of Tn/Ky, and now that it is tax time, I don’t know who I am supposed to pay taxes to. Please help! Thanks in advance

    • Tax Advisor says:

      Hi Dixie,

      First of all, you need to file a resident return in Louisiana. This will tax you on ALL of your income no matter where it was earned. You should take note when you file, however, that LA allows members of the armed services who were stationed outside the state on active duty for 120 or more consecutive days to take a deduction of up to $30,000. I’m assuming your husband is also a LA, but if not you can always file separate state returns.

      Next you have to file a nonresident return in all of the states where you earned money. Since Tennessee has no income tax you don’t have to worry about that. Kentucky does have an income tax, but as far as I’m aware, if your only source of income (from KY) is military income, then you don’t need to file a KY return. So it’s actually kind of good luck that you ended up working in TN.

  205. Keith says:

    I lived and worked most of 2012 in California. After my position was eliminated, I was retained at my location and sent to other locations that my company operates in Maryland and Texas. Rather than being paid by the locations out of state, the labor was billed back to my “home” location and they continue to produce my paycheck. I have left my address as the last place I lived in California and they forward my mail to me but I live out of hotel rooms wherever I am assigned and I had my posessions placed in storage back in Florida where I go between assignments as that is where I have my family living.

    Given this situation, these are my questions:
    1.) Should I be paying California income tax for the time I worked in Maryland and Texas despite the fact that the company still paid me from my California location?
    2.) Should I change my address to Florida to reflect where I “live” the few weeks I do not work on assignment even though I do not have a real physical address there (or anywhere else)?
    3.) If I do change my address, should my company continue withholding California state taxes?

    Thank you!

    • Tax Advisor says:

      Hi Keith,

      All of this depends on whether you are still a California resident. I don’t really have enough information to make that call, but I can point you in the direction of information that can help you decide: https://www.ftb.ca.gov/forms/2012/12_1031.pdf.

      If you haven’t established a permanent residence anywhere else, I would guess that CA still considers you a resident. In that case, you will have to file a resident return in CA that taxes you on ALL of your income no matter where it was earned. Then you will have to file a nonresident return in Maryland that taxes you only on the income you earned in that state.

      If it turns out that you are not a resident of CA, then you need to file a resident return in whichever state you are a resident of and then a nonresident return in every state where you earned money (although note that neither Texas nor Florida have an income tax).

      I think it does make sense to change your state of residence to Florida, given that Florida has no income tax and CA has one of the highest tax burdens in the country. If you do change your address, your company should stop withholding CA income tax unless you physically do work in CA.

  206. Sophie F says:

    I live in Idaho and worked half year there and other half in north Dakota.. keeping residency in Idaho.
    How do I file my taxes? For state? And federal is with both States w~2′s correct?

    • Tax Advisor says:

      Hi Sophie,

      You need to file a resident return in Idaho that will tax you on ALL your income no matter where it was earned. Then you also need to file a nonresident return in North Dakota that will tax you only on the income you earned in that state. And yes, your federal return includes income from both states (as well as anywhere else).

  207. Ashesh says:

    Thank you for your helpful post! I was living and working in NYC until October 1st of 2012, following which I moved to Boston. I am still getting paid by my employer in NYC and will continue to do so (I don’t have any Massachusetts sourced income). Does this mean that I file my taxes as a part year resident of New York and NYC, and part year resident of Mass? Also, can I then claim an exemption for taxes paid in those 3 months to Mass on my NY and NYC tax return?
    Thanks for your help!

    • Tax Advisor says:

      Hi Ashesh,

      If you moved permanently to Massachusetts, then yes you should file a part-year resident return in New York (which includes NYC) which will tax you on all of your income from Jan. 1 to Sept. 30. Then you also need to file a part-year resident return in Massachusetts that will tax you on all of your income from Oct. 1 to Dec. 31. You will be able to claim a credit for any taxes paid to the other state, but I suspect that if you were a Massachusetts resident for those three months, then those MA taxes were correctly withheld.

  208. David says:

    I moved from NY to CA in March 2012 to take a job, while my unemployed wife and daughter remained in our home in NY. My employer withheld Federal and CA taxes. All of the income I earned in 2012 was related to the CA-based job. I intend to file jointly and will assume (hope) I can file partial resident returns for both CA and NY. Is that correct?

    • Tax Advisor says:

      Hi David,

      If you moved permanently to California, then yes you will need to file a part-year resident return in New York (which will tax you on all of your income from Jan-Mar) and a part-year resident return in California (which will tax you on all of your income from Mar-Dec). But can only do this if you became a permanent resident of CA. If you are still a permanent resident of NY, then you need to file a resident NY return that will tax you on all of your income as well as a nonresident return in CA that will tax you on the income you earned in CA.

  209. Leah says:

    I work in California as an independent contractor and live in New York. How do I file? Thank you!

    • Tax Advisor says:

      Hi Leah,

      You need to file a resident return in New York that will tax you on all of your income no matter where it was earned. Then you need to file a nonresident return in California that will tax you just on the income you earned in CA.

  210. mei says:

    My family lives in Texas and I work and live in New york(I changed my driver licence). I come back twice a year to visit my family. I am trying to file the taxes. I am not sure what is the best way to file: married jointly or married file separatedly? Other question: in 2011 year, I worked half year in new york and worked half year in Texas. When I did my tax return by doing Turbo tax, somehow, I was taxed whole income for new york income for state tax return. I wonder if I can claim half year income earned from Texas back this year? Thanks.

    • Tax Advisor says:

      Hi Mei,

      Even if you and your spouse file a joint federal return, you can still file your state returns separately. So in this case it might make sense to file your federal return married filing jointly and your state return married filing separately.

      As for 2011, there’s no way you can correct this mistake by doing anything to your 2012 return. If you need to file something on a 2011 return you will have to file an amended 2011 return.

  211. mike t says:

    I live in SC but work in NC. I usually get some money back from NC and file a SC return that is a 0 net. But will now have a rental property in SC. So does the rental income go on the SC return? I’m assuming so but not really positive.

  212. Chicago Crystal says:

    Dear Tax Advisor,

    My husband and I moved from Indiana to Illinois in August for him to attend school. I kept my job in Indianapolis working from my home office in Illinois. I know we need to file a part time resident return for each state. From what I can tell my employer did not take IL taxes out despite me completing an Illinois W4 in August for my employer.

    When I claim income taxed by Indiana on my IL return am I to calculate my income made only August-Dec? If so is this amount before taxes or after? Also when I claim the taxes paid to Indiana, do I only calculate August-Dec?

    Thanks!

  213. lizd812 says:

    Hi, I am a seasonal worker. I claim NC as my residency. However I worked in Alaska, Colorado, Montana, and got unemployment from NC. My big issue is that the seasonal position I worked for in Alaska sent me my federal wages but obviously no state income tax was taken. However I just filed my taxes and after I did I received (2) W2 Corrected forms from the company in Alaska. One is the W2 that I used for Alaska to be inputed into my federal return- no changes same info I put in. The other W2 corrected form was from same company except it stated NC wages and income was withheld. The amount was different from the other W2. How can NC take taxes out of my Alaska income if I never worked for that company in NC? Do i need to amend a return and put this is in under my federal and NC state or just NC state? Is this going to take money from my return or add to it? Please help so confusing.

    • Tax Advisor says:

      Hi lizd812,

      Because you are a North Carolina resident, NC is entitled to tax ALL of your income, no matter where it was earned. This includes the income you earned while working in Alaska.

      You definitely need to file an amended NC return. Other things being equal, this will likely make your tax bill smaller/make your refund bigger because it will let NC know that you have already paid some of the taxes you owe through withholding.

      Whether or not you have to amend your federal return is a bit more complicated. You can take an itemized deduction for state and local income taxes. So if you itemized your deductions, I recommend filing an amended return. If you took the standard deduction, you need to go back and see whether the addition of these state taxes in the itemized deduction column now makes it more valuable for you to itemized deductions as opposed to taking the standard deduction. If you have a relatively simple return with few possible itemized deductions and the amount of state taxes withheld was relatively small, then I don’t think it will make much of a difference. In this case you would not need to file an amended federal return.

  214. Anthony says:

    I live in NY, worked as a consultant for a NJ company, but through a NY agency. i was a W2 employee on a job in Minnesota. I paid NY and Minnesota state taxes. I was just laid off and want to know if I can collect NJ unemployment?

  215. Chicago Crystal says:

    Hi Tax Advisor,

    So now I am thinking that I wont have to file for IL after all. My husband and I have not established residency in IL such as registering a car, acquiring an IL drivers license/ID card, or registering to vote. We only have been paying rent.

    At first, I thought that I needed to change from part time resident to non resident but as a non resident the income must come from IL sources. What does that mean? By the Illinois Department of Revenue website it seems like we need to establish residency (for part time resident) or have income from Illinois sources (for non resident). I am not sure what IL sources means unless it is those companies in IL; all of my income came from Indiana companies.

    Thanks again!

    Sounds like I should be establishing my residency right away for easier taxes in 2013. I am paying IL taxes this year.

    • Tax Advisor says:

      Hi Chicago Crystal,

      Yes, if you didn’t establish Illinois residency (and are thus still an Indiana resident) then you need to file a resident return in IN for the whole year. This will tax you on ALL of your income no matter where it was earned.

      But it sounds to me like you also need to file a nonresident return in IL. IL source income is any income that you earned while physically in IL. It doesn’t matter where the company is located. Since you said that you worked from a home office in IL, that constitutes IL source income. So you should file a nonresident return on just the income you earned in IL. The same thing we discussed in the last comment about claiming a credit for taxes paid to the other state still applies.

  216. New DC Household Employer says:

    Dear Tax Advisor- please help! I hired a nanny full time in 2012 for my son, we live in DC and she lives in MD. I have my federal EIN and all of the SS and unemployement issues worked out but trying to fill out W2 am now confused about boxes 15-20 regarding state and local income. We are not withholding federal or state income tax, so do I just leave 15 – 20 blank? If I have to fill in do I fill in DC (where wages were earned) or MD (where employee lives)? Appreciate your help!

    • Tax Advisor says:

      Hi New DC Household Employer,

      To be honest I really don’t know that much about filling out a W-2 from the employer’s end. On the form W-2 though, it says, “If you have questions about reporting on Form W-2, call the information reporting customer service site toll free at 1-866-455-7438 or 304-263-8700 (not toll free). For TTY/TDD equipment, call 304-579-4827 (not toll free). The hours of operation are 8:30 a.m. to 4:30 p.m. Eastern time.” I suggest you do this just so you get an official answer.

  217. Melissa says:

    Hi, I have a question, my husband works in the states of Ohio and kentucky, but we live in Illinois, last year we paid Illinois state 500 Ohio state paid us $600 my question is why we have to pay Illinois If we still live here and pay taxes all year to Illinois ?, I don’t get it, and other question, what can we expect this year if he does not have any income from Illinois state only unemployment, thank you

    • Tax Advisor says:

      Hi Melissa,

      You have to pay taxes to the state where you are a resident on ALL of your income, no matter where it was earned. So as long as you remain an Illinois resident you will have to file an IL resident return.

  218. Barb says:

    My daughter did a paid college internship in Orlando, Fl. There were no taxes taken out. Her residence is New York State. Does she just file in NY (and owe Federal and State taxes)? Does she have to file anything in Florida? Also, she lived in housing operated by the business she worked for and they took rent right out of her check…..she paid around $400 a month in rent and made $8300 (before taxes)….can her rent be used as a write off? ( Since she obviously had to live there in order to do the internship). Thanks

    • Tax Advisor says:

      Hi Barb,

      Since your daughter is a resident of New York, she most likely needs to file a NY resident return. This will tax her on ALL of her income, no matter where it was earned. She probably needs to file a federal return as well, though I can’t be certain of this. IF she is your dependent then she definitely needs to. Refer to these articles to figure out if she has to file:
      http://www.rapidtax.com/blog/do-i-have-to-file-a-2012-tax-return-2/
      http://www.rapidtax.com/blog/do-dependents-have-to-file-taxes/

      She does not have to file anything in Florida because FL has no income tax.

      The IRS does allow you to deduct temporary living expenses in very limited circumstances but I would say in this case probably not, since she went down there of her own volition to do an internship and wasn’t required by her employer to work away from home.

  219. Cathy J says:

    I worked in Illinois and lived in Indiana for the majority of the 2012 year (Jan – October). I now live in Kentucky and work in Ohio. Does this mean I need to file in all four states?

    Also, I am a recent college grad. I had two student loans in 2012 that were gaining interest. I paid one of them off, but I’m still paying on the second. Should my loan companies send me information on the interest for my taxes? I haven’t gotten anything from them yet. I’ve heard that this can factor in when filing your taxes.

    Thank you!

    • Tax Advisor says:

      Hi Cathy J,

      Yes, unfortunately it looks like you’ve got four state taxes to file. You need to file part-year resident returns in both Indiana and Kentucky and nonresident returns in Illinois and Ohio.

      As for the student loans, yes, you can deduct student loan interest and often it can end up being quite valuable. You should receive a 1098-E [Student Loan Interest Statement] from your lender letting you know how much you can deduct. However, note that they will only send this out if it is more than $600 (even though you may be able to deduct less than that). These days, most lenders will just make this information available online. If you have an online account for these loans, try logging in and you will probably find that information there. But also note that not every student loan you pay off will necessarily have interest you can deduct. Check here for more info: http://www.priortax.com/filing-late-taxes/how-do-you-deduct-student-loan-interest/

  220. CJ says:

    I have a residence in NY but my job is relocating to FL. Can the living expenses I incur (rent, car lease etc) living in FL while maintaining my house in NY be deducted from my taxes?

    • Tax Advisor says:

      Hi CJ,

      You should look into deducting travel/moving expenses but generally the IRS does not allow you to deduct living expenses, especially if your company has permanently relocated to Florida and your stay there is indefinite.

  221. Jordan S says:

    Hello,

    I live in Arizona and work from home and onsite in Arizona, but my employer is based in Utah. They have me currently paying Utah taxes. Is this correct or should I be considered working in AZ since that’s what I’m doing.
    Thank you!

    • Tax Advisor says:

      Hi Jordan S,

      They should not be withholding Utah taxes. Since you live and work entirely in Arizona you are only obligated to pay AZ income taxes. You should ask your employer to stop withholding UT taxes and start withholding AZ taxes. However, since UT taxes have already been withheld, you will need to file a UT nonresident return in order to get that money back.

  222. Ryan C. says:

    Hello,

    I’m currently entertaining the idea to my employer in Florida to let me live and work remotely in Arizona. When it comes down to tax time, the only taxes I will have to pay would be to Arizona, correct? Is there any negative reasons that would keep the company from allowing me to do so? Nexus, paying AZ state taxes for the company, etc? Thank you.

    • Tax Advisor says:

      Hi Ryan C.,

      Yes, if you lived and worked in Arizona you would have to file an AZ resident tax return. As for reasons why the company wouldn’t let you do this, I really can’t say. I’m not that familiar with business tax laws/regulations, and it gets even more complicated because every state has their own rules.

  223. Patrick L says:

    Moved full time to VA in Dec 2011. Had a final compensation payment from NJ in Jan 2012 and had $700+ held in NJ state tax. It was my understanding that that money would be returned to me and I would then submit this plus the rest of my 2012 state tax to VA.Had my accountant that I have used for years in NJ do my forms and now I owe an additional $700+ dollars to NJ even though I live here in VA. I checked and VA does tax out of state pensions. I’m thinking that even though this guy is very reputable, he may not be understanding out of state regulations. He also told me that in the future I would not owe VA. My pension currently only takes out federal. Am I missing something or is he wrong like I think?

    • Tax Advisor says:

      Hi Patrick L,

      I want to warn you at the beginning that I’m not too familiar with how pensions are taxed. What I can tell you, however, is that you have to file a resident return in Virginia that taxes you on all of your income no matter where it comes from (which I think you already know). But just because you are now a resident of VA doesn’t mean that you don’t have any New Jersey tax obligations. NJ nonresidents are responsible for paying tax on all of their NJ source income. I’m not 100% sure but I think a pension from NJ counts as NJ source income. In that case, you would owe some tax to NJ. Whether it’s going to be more or less than $1,400 I can’t tell you, but don’t think you’re just going to get back everything that was withheld from NJ.

  224. Greg says:

    I live in Texas (no state tax) but worked in Oregon last year (state Tax) I am not an Oregon resident. My Company held out Oregon state tax but not enough. Do I have to pay Oregon taxes or can I file as a non resident? This is a temporary assignment as my job requires me to travel

    • Tax Advisor says:

      Hi Greg,

      If you are a Texas resident who earned money in Oregon then you have to file an OR nonresident return, no matter how much money was withheld. You will certainly have to pay tax on the income that you earned in OR.

  225. Nathan says:

    If I live aboard a sailboat on the Hudson river, will I avoid paying city and state tax while I work in New York City?? I am planning on living aboard full-time. I lived aboard my boat in DC while I worked there but never checked into the savings cause I also had an apartment. In NYC, I will only live on the boat. The reason I ask is because I heard rumor that people living aboard their boats on the hudson full-time avoid paying city taxes.

    thanks

    • Tax Advisor says:

      Hi Nathan,

      This is truly a first for me and I have no idea. I imagine it would come down to where your permanent address is. Do you have mail delivered to the boat with a NYC address? I honestly have no idea.

  226. Mike R says:

    Hi,

    For all of 2012 I lived in North Carolina and for part of the year I was receiving unemployment from New Jersey (I lived in New Jersey for most of 2011 and moved back to NC in August of 2011) until about August of 2012. I am trying to figure out how to best file because I keep getting an amount that I owe NC but I think that they are taxing my Unemployment. I also withheld federal from Unemployment. What should I do?

    • Tax Advisor says:

      Hi Mike R,

      Since you moved back to North Carolina permanently I’m going to assume that you are now a NC resident. If that’s the case, you need to file a resident tax return in NC that will tax you on ALL of your income no matter where it comes from. Secondly, you need to file a NJ nonresident return if you received NJ source income. I’m not sure if unemployment constitutes NJ source income, but if it does you will have to file.

  227. Tom says:

    Hi,
    I still maintain CA residency (list my permanent address there, vote there), but go to school in NY (and live in NY as well). I work part time for a company also based in CA. Sometimes I work remotely from my residence in NY, and other times I fly back to CA and work onsite for the company. Should all of the work I do for the CA company be taxed in CA? Or does the work I do remotely from NY need to be taxed by NY, and then that payment deducted from the total tax I owe to CA, my state of residency?

    Thanks!

    • Tax Advisor says:

      Hi Tom,

      Since California is your state of residency, they have the right to tax ALL of your income, that earned in CA as well as NY. This means you have to file a CA resident return.

      But since you earned money in NY, you also have to file a NY nonresident return. This will tax you just on the income you earned while physically in NY. Then to prevent being double-taxed you’ll be able to claim a credit for taxes paid to the other state.

  228. Tom says:

    Thanks for your quick reply!

    My main question was if the work I did physically in NY counted as work “in” NY, since even though I was physically in NY, I was in a sense “telecommuting” and working for a company in CA. From your response, it sounds like it is just the physical location that matters?

    Thanks!

    -Tom

  229. Arpit says:

    Hi,
    Here’s my tax situation. I am a non-resident alien in the US. My last employer was in Texas but I used to work from Virginia (Jan 2012 – AUg 2012). Because of the same reason my employer did not withheld any Viriginia state tax from my paycheck. My question is, being a non-resident alien, do I need to file Virigina state tax return for income from Texas? I am neither Texas resident nor Virginia resident (F-1 student Visa). Please let me know.

    • Tax Advisor says:

      Hi Arpit,

      Texas has no state income tax so we don’t have to worry about that. The only question here is whether you have to file taxes in Virginia. Here what I found on the VA Dept. of Taxation Revenue:

      “A resident or nonresident alien is subject to the same Virginia residency provisions as all other filers. If you are a resident or nonresident alien required to file a federal income tax return, and you meet the definition of a Virginia resident, part-year resident or nonresident and other filing requirements, you must file a Virginia return, unless exempted from the requirement by federal treaty.” You can read more here: http://www.tax.virginia.gov/site.cfm?alias=ResidencyStatus#ALIENS.

      What you need to do is take a look at the definition of a resident on the VA website and figure out whether you qualify as a resident (according to their definition. If you DO qualify as a resident, then you need to file a VA resident return. If you DON’T qualify as a VA resident then you need to file a VA nonresident return.

  230. Darsh says:

    Hello,

    I live in MA. I work as a contractor for a CT based company. My contract job is in MA, while my company is based in CT. My W-2 shows that I have been paying tax for CT. NOT in addition to MA, just CT. Is that right? If so, how should I file my tax? I also have a W-2 for my on-campus job as a student earlier in the year, it is for MA. Please suggest what I should do!?

    Thanks!

    • Tax Advisor says:

      Hi Darsh,

      You need to file a resident return in the state where you are a permanent resident, in this case Massachusetts. Normally, you would NOT need to file a Connecticut return as long as all of your work was performed in MA (the location of the company is irrelevant). However, because CT taxes were withheld from your pay, you do need to file a CT nonresident return in order to get that money back (which will most likely come in the form of them transferring it to MA). Ideally, CT taxes should not be withheld from your pay at all (as long as you aren’t doing any work there) and MA taxes should be withheld instead.

  231. Mike R says:

    So even if i received the unemployment in another state (NJ) but lived in NC; NC has the right to tax that unemployment?

  232. pateld47 says:

    Hello,

    I started to work as a contractor for a recruiting firm based in CT recently. My work site is in MA and I have been staying in MA since past two years. My W-2 from my current job says I have been paying state tax for CT, NOT in addition to MA, just CT. I was not entirely sure if that is quite right. Can you please let me know under what status should I file my state tax? Oh, and I also paid some tax to MA earlier in the year, when I was still a student.

    Thanks!
    Darsh.

  233. Suzanne F says:

    Hi. I ive in Oregon but did some work as a subcontractor for an independent contractor in Utah. do I pay Utah taxes as well as oregon taxes?

    • Tax Advisor says:

      Hi Suzanne F,

      First of all, because you live in Oregon you need to file an OR resident return that will tax you on ALL of your income no matter where it was earned. Then because you earned income in Utah, you also need to file a UT nonresident return that will tax you just on the income you earned in UT.

  234. Arpit says:

    Hi Tax Advisor,

    I really appreciate the efforts you took to look into the Virginia tax website and gather the information for me. Thanks a lot.

    It looks like I was a Virginia resident since I was there for more than 183 days. I have moved to california now, so I guess I need to file as part year resident. But there is another issue. My employer did not withold any VA taxes from my paycheck. Should I still go ahead and file the VA state tax form or should I contact the employer first and ask her for a corrected W2 before I file?

    • Tax Advisor says:

      Hi Arpit,

      You should only contact your employer for a corrected W-2 if you actually did withhold Virginia taxes but for some reason this didn’t show up on the W-2. If she didn’t withhold VA taxes (and this was accurately reported on your W-2) then there’s no reason to get a new W-2.

  235. pateld47 says:

    Hi Tax Advisor,

    Thanks a bunch for your advice. I would like to add a fact though, I am a non-resident alien and I am staying here on student visa (F-1). Does it change anything? Should I mention mt CT tax when I am filing my tax for MA, and vice versa?

    I really appreciate your advice.

    Thanks,

    Darsh.

  236. Mathew says:

    I’m filing my tax today and before sending it in I noticed I owe a lot of money on my resident side state. I work in Pennsylvania but I live in New York. I followed all the instructions both the e-filing and what’s on my W2. The thing is the program states I owe New York over 1k in tax but I owe nothing for Pennsylvania. I’m curious is it because it thinks I was making an earning in New York and not meeting the tax requirement which in turn become as an under payment or do I actually owe them that much? I did not work in my resident state for over a year and all has been done in the non-resident state which would be Pennsylvania.

    • Tax Advisor says:

      Hi Matthew,

      First off, your resident state (in this case New York) has a right to tax ALL of your income, whether it was earned in NY or not. So most likely you will end up owing some money to NY. More than this, I really can’t tell you whether this sounds right or not because it largely depends on how much state tax was withheld from your pay over the course of the year. If nothing was withheld you will owe a large amount, and if too much was withheld you’ll get a refund. Also make sure that if any PA taxes were withheld that you are claiming the credit on your NY return for taxes paid to another state.

  237. Arpit says:

    Hi Tax Advisor,

    So do you mean to say that I do not need to file a Virginia return sice no VA taxes were withheld which is accurately reflected in my W2? Or should I still go and file the VA tax return with my current W2? Thanks again for answering my questions.

    • Tax Advisor says:

      Hi Arpit,

      If you were a resident of Virginia, or you earned money in VA, you need to file a VA return, regardless of what your W-2 says. Often state taxes are not accurately withheld on W-2s.

  238. Kevin says:

    Hi Tax Advisor,

    I live in Canada. I have been working remotely for a company in California. They issue me a W-2 for 2012 and in box 16, all of my salary is reported as CA salary. I am wondering if this is correct. I talked to California FTB and was told that my salary is not considered CA-sourced, because the job was performed outside of California. Before I talk to the payroll, I want to make sure my understanding is correct. Should I ask for a corrected w-2 showing zero CA salary in box 16?

    • Tax Advisor says:

      Hi Kevin,

      The California FTB is correct. If you were living in Canada the whole time and did all of your work in Canada, then none of your income should be considered CA source income. In this case you wouldn’t have to file a CA return. Do note, though, that if any CA taxes were withheld from your pay you’ll have to file in order to get it back.

  239. Mudra says:

    Hi tax advisor,

    Great forum and article – thank you in advance for answering my questions!

    I have just accepted a job in MA. My husband works in NY and we own a home in NJ. I will be moving to MA and my husband will live in our home in NJ. We plan to alternate weekends in MA and in NJ and extend those weekends with telecommuting… For example, the weekend he comes to MA and he will works from home or Boston office on Thurs and Fri and the next weekend I will do the same from Jersey. My questions:

    1. Should I transfer my residence to MA? (I’m signing a 12 month lease on an apt.) If yes, what are the implications on the property I own with my husband in NJ?
    2. Should my husband transfer his residence to NJ? (He will be on the MA lease as well unless you advise otherwise.)
    3. So, in reading everything here, what I think we may need to file is…. A. NY nonresident for my husband, B. NJ nonresident for both of us if you think it’s a good idea for my husband to transfer residency to MA, and C. MA resident for both of us. Is that right? And is that the wisest choice financially?

    Thank you so much!!
    Mudra

    • Tax Advisor says:

      Hi Mudra,

      I imagine that you should transfer your residency to Massachusetts. I don’t think there’s really going to be any great tax benefit since MA and New Jersey are both such high-taxing states, but you don’t want the state coming after you if you meet their definition of a resident and don’t file a resident return. You can take a look at the official definition here. It sounds to me like you’ll meet them – http://www.mass.gov/dor/individuals/filing-and-payment-information/guide-to-personal-income-tax/residency-status.html#FullYear. As for your property in NJ, I’m not really sure what the tax implications will be as I don’t deal with property taxes, but I imagine you’re not going to avoid paying NJ property taxes.

      As for your husband’s residency, why isn’t he a NJ resident already? You made it sound as if he lived in NJ and commutes to NY. You can’t exactly pick and choose your residency. If his permanent home is in New Jersey then he is a NJ resident. I don’t think he’s going to qualify as a MA resident, especially since you’ll be going down to NJ to visit him, which implies that he is a resident of NJ.

      This is what is sounds like you should file. Naturally I’m not acquainted with your situation entirely and so this may not be exact. But I think you need to file a resident return in MA and then a nonresident return in NJ since you are earning money there when you telecommute while visiting your husband. Then your husband will most likely need to file a NJ resident return and then a nonresident return in NY since he works there, and then a nonresident return in MA as well since he’s doing work there when he visits you.

      If you’re looking to squeeze the most money out of this situation I suggest sitting down with a tax accountant who can really hammer this out with you. Do note however that when you file multiple returns like this you have the opportunity to claim a credit for taxes paid to other states so theoretically you won’t be double-taxed.

  240. Arpit says:

    Thanks Tax Advisor for answering my questions.

  241. Andrea says:

    hi I have a question my daughter attends school in Kentucky and we live in Ohio and this past summer she worked at the school as a summer camp leader… how should I file her state tax…. she technically is not a resident of Kentucky although she lives there for 9 months out the year not including summer as a student on campus…… I tried to file an Ohio state tax return but it wouldn’t accept cause there wasn’t an Ohio state withholding tax number… please advise or should I just leave it alone I mean its only a hundred dollars….. but a hundred dollars to a college student is alot of money please advise….. thanks in advance for your help…..

    • Tax Advisor says:

      Hi Andrea,

      Ohio and Kentucky have a reciprocal agreement, so your daughter only has to worry about filing an OH resident return. However, most states have income thresholds below which you don’t need to file a return. In OH, for example, you don’t have to file a return if your gross income is less than $11,700. If your daughter only earned $100 all year, she doesn’t need to file.

  242. imelda says:

    Hi! My husband work in Washington. We live here in NY. He stays in NY less than 5 months. Can he claims for a part year resident for his NY State Tax? Thank you for the clarification.

    • Tax Advisor says:

      Hi Imelda,

      Your husband can only file as a part-year resident if he moved permanently from New York to Washington during the tax year. If he’s technically still a permanent resident of NY, and hasn’t changed his residency over to WA, then he has to file a NY resident return.

  243. PSub says:

    Hi,

    I read this interesting blog, and appreciate the great info you are providing. I would like a comment on my situation. I live in CT but work full time in NY. All salary is from NY ONLY. My wages on my W-2 are as follows (hypothetical figs)

    Box 16 State wages, tips, etc.
    NY $90000
    CT $90000

    Box 17 has only one entry
    $ 3500

    So which state does this apply to?

    If it is NY, do I enter the same value for CT taxes? Or is entering it for CT wrong?

    Many thanks for you help !

    • Tax Advisor says:

      Hi PSub,

      Do you see how box 17 is divided in half by a dotted line? The number entered there will be either on the top or bottom and should apply to the corresponding state in boxes 15 and 16. For example, if New York is the state on the top in box 15 and the $3,500 in box 17 is also on the top then it applies to NY.

      You should obviously report this number as taxes withheld on whichever state tax return it applies to. However, when you file the other state return, do not report this number as taxes withheld for that state. Instead you will be able to claim a credit for taxes paid to the other state.

      If there’s no number in box 17 for the second state then that means no taxes were withheld for that state.

  244. PSub says:

    Just a follow up: I mean, what do I enter for CT taxes withheld in the CT state return.

  245. LInd says:

    I have employees that have their home address in Illinois. They work in Missouri and are paid per diem for lodging in Missouri near job. Which state does withholding taxes for this situation? I also have employees that resident in Kansas and work in Missouri with a per diem provided.

    • Tax Advisor says:

      Hi Llnd,

      Well these employees are all definitely going to have to file in their resident states of Illinois and Kansas so it’s probably a good idea to have those taxes withheld. Since they did work in Missouri they’ll also have to file a MO nonresident return. Whether they should have MO taxes withheld probably depends on how much money they are earning in that state.

  246. Anne H says:

    Hi,

    I started a job as a Physician Assistant in 2012. I work for a physician group that is based in Ohio. They have contracts with hospitals all over the country. I physically work in two hospitals in Illinois. I live in Indiana. The W2 shows Indiana withholding. Do I need to file in Illinois? I assumed yes, but then thought 1. How would IL even know that I work in Illinois, and 2. How do sales reps file? For example, if you were for a pharmaceutical company, live in one state, but have a territory in another (or even nationwide)….where do you file? It’s a different situation, but I’m curious how you handle the “pay tax where you earn money” rule.
    Obviously, I’d love to not pay IL taxes as they have a higher tax rate than IN, but have a feeling that’s what I need to do.Would appreciate your advice. THanks.

    • Tax Advisor says:

      Hi Anne,

      Yes, you should file a resident return in Indiana and then a nonresident return in Illinois. How IL knows that you work in IL is an open question. I’m sure there are records somewhere of your working in IL. At any rate that’s the law and I can’t rightly advise you to do anything different. As for sales reps, they too must file nonresident returns where they earn their money. Most states have an income threshold for what was earned in that state below which you don’t have to file. So you really have to make quite a bit of money in that state in order to have to file. Also, I wouldn’t be so eager to avoid IL taxes because filing an IL return isn’t really going to cause you to be taxed any more than if you had just filed a IN state return. You will be able to claim a credit for taxes paid to the other state to prevent being double-taxed.

  247. Christina says:

    Hi There,

    My question concerns my husband who is an OTR truck driver..his company is based out of AL but we are residents of OK…his employer held out AL taxes but we paid taxes on the income in OK as well…who do we actually have to pay taxes to since he doesnt actually work IN Alabama…and should we get the AL taxes refunded since we paid to OK on the same exact income?

    • Tax Advisor says:

      Hi Christina,

      You all definitely have to file an Oklahoma resident return. Then you also have to file an Alabama nonresident return. Normally you wouldn’t have to file AL taxes (since he didn’t work there) but in this case you do have to file in order to get the taxes that were withheld back. He should ask his employer to stop withholding AL taxes.

  248. gowri says:

    Hello,

    Me and my husband are residents of CA. We paid CA resident state taxes in 2011. We have a rented apartment in CA and I work in CA and worked for the entire 2012 in CA.My husband had to work in New York on a temporary assignment for 8 months in 2012 (april – november) . His employer paid him some business reimbursements to cover his living expenses but it is way below what we had to spend (as he had to rent a studio apartment, take trains every day to work, travel home once a month, meals and entertainment expenses) and way below per diem max stated by the federal government for that area. So can we deduct the actual living expenses minus the business expenses reimbursed from taxable income? We are planning to deduct the following:

    1. Rent for the apartment paid during his stay in NY
    2. Meals and entertainment expenses upto federal allowed limit for the area he lived in
    3. Airfare and taxi charges he paid to come home once a month
    4. Train tickets and car mileage commuting to work from his apt

    We plan to add all the above expenses and subtract the business expense rebursement that his employer paid. Is that ok?
    What all receipts should we retain in case of an audit? We have the records for apartment rent, airfare, taxi charges, train tickets. But we don’t have the receipts for his meals.

    I know this is slightly off topic but it would be very helpful if you can reply.

  249. Brian says:

    This is tricky, so here it is, I am a full time resident of the great state of Florida, my company is based in Wisconsin, I work over the internet (VPN) from my home in Florida, I receive a W-2 from my company in Wisconsin. I do not physically travel to Wisconsin at all to work. Should I be paying Wisconsin income tax???, Am I taxed on where I get my W-2, or where I live, and physically do work for my company in Wisconsin

    • Tax Advisor says:

      Hi Brian,

      Luckily for you, the great state of Florida has no income tax, so you don’t need to worry about that. It also sounds to me like you should not have to file in Wisconsin either. You have to pay taxes to the state where you live and to any state in which you earned money. If you lived in FL all year and did all of your work in FL then you shouldn’t have to file in WI. The one exception to this rule is if WI income taxes were withheld from your pay. If that’s the case, then you have to file a nonresident WI return in order to get that money back.

  250. Ana says:

    I’m a little confused,
    I lived in Illinois, and worked in Iowa, Since i got laid off in November of 2011, I received my unemployment for Jan.2012 and Feb.2012, then I moved to Texas and worked here for the whole year. I’m a little confused on how to go about my taxes since i worked in Texas for 10 months, and the only income recieved from Iowa was two months of unemployment.

    It would be very helpful if you replied!!!

    • Tax Advisor says:

      Hi Ana,

      I’m a little confused about your situation. From your description you make it sound like you moved from Illinois to Texas partway through 2012. If so, then you need to file a part-year resident return in IL. You don’t need to worry about TX because it has no income tax. You also need to worry about Iowa, however. Iowa unemployment benefits are considered Iowa-source income. If you received more than $1,000 of net income from Iowa sources in 2012 then you need to file an IA nonresident return as well.

  251. Brian says:

    Your statement , you have to pay taxes to the state where you live, AND to any state in which you earned money, that would be Wisconsin, so do i have to pay Wisconsin income tax, even though I preformed all my work IN Florida?? Thanks for any and all help.

    • Tax Advisor says:

      Hi Brian,

      If you did not physically travel to Wisconsin then you did not earn money in Wisconsin. If you performed all of your work physically in the state of Florida you do not have to file a WI nonresident return. It doesn’t matter where your company is located. It’s irrelevant.

  252. SO says:

    Hello.
    We have a new sales rep who resides in MN and we are in CA. The sales rep will be based out of MN, but will travel through mid-west to follow up on leads. How would we handle it. Do I give the sales rep tax forms for CA and MN? Thank you.

    • Tax Advisor says:

      Hi SO,

      If she’s a resident of Minnesota then MN taxes should definitely be withheld as she needs to file a resident return. You shouldn’t need to withhold any California tax unless she physically comes to CA to do work, in which case you might depending on how long she is there and how much money she makes. Then she has to worry about filing a nonresident return in every state where she earns money. Most states have a certain amount of time or a certain income limit below which you don’t have to file a return. So she should spend some time on those states’ tax authority websites to see if she has to file.

  253. Collette says:

    In 2010 we lived in New Jersey.. On April 1, my husband moved to Colorado for a job transfer within his company. My children and I stayed in NJ until July 1. MY husbands 2010 W-2 reflects that he earned income in NJ from April 1st to July and income in Colorado from April 1st to July. They claim since his family was still at the NJ address this applies but since he worked in Colorado that applies as well. They will not change the W2. How do we file? We’ve been putting it off trying to find a solution. Thank you.

    • Tax Advisor says:

      Hi Collette,

      I think the best thing to do in this situation is for you and your husband to file separate state returns, even if you file a joint federal return. Your husband should file a New Jersey part-year resident return covering the period from January 1st to April 1st and then a Colorado part-year resident return covering the period from April 1st to December 31st. Then you should file a NJ part-year resident return for January 1st to July 1st and then a CO part-year resident return from July 1st to December 31st. I’m not 100% sure but this seems like the best option. Obviously the easiest thing to do would just be to sit down with a CPA or other tax expert. If you decide to prepare your state return with RapidTax, you can call 877-289-7580 and explain your situation to one of our tax professionals and they should be able to advise you of the best course.

  254. Nav says:

    Hello

    I have my permanent address in NJ and I work in NY. Just for one month in Jan 2013, I changed my address to NY and agian changed it to NJ in Feb 2013.
    Since my address was NJ, i did not pay much local taxes in 2012, but on my W2 I got my NY address.
    Will I ending up paying more local/city taxes, should that be a problem because, NY has higher local taxes than NJ.
    Thank you for your time. – Naveen,R

    • Tax Advisor says:

      Hi Nav,

      I’m confused. If you only lived in NY for one month in 2013 that should not affect your 2012 taxes at all and you won’t owe any NYC taxes. For 2013, however, you may owe NYC local taxes if you were a resident for that month. If you were a resident of NYS for that month, then you’ll have to file a NY part-year resident return which will include the NYC tax for that month. But do check to see if you even qualified as a NY resident since your time there was so short.

  255. TX Question says:

    I was recently told by a forensic accountant (note: not a tax attorney, hence the question) that there was some recent court challenge for the following scenario: living in California but working part time in Texas and being paid for the Texas work via a 1099-MISC. Supposedly, in this scenario, I shouldn’t have to pay state income taxes on the money earned in Texas since the work was performed in Texas and Texas has no state income tax.

  256. Daniel Smith says:

    I am relocating to Charleston, South Carolina. I work for an internet based company. We are based in Michigan. We have customers currently all over the country. I am primarily a sales rep. My income is based on sales. With the company in Michigan and me living in SC how will the payroll and taxes work?

    • Tax Advisor says:

      Hi Daniel Smith,

      Are you living in Michigan now? If so, you will have to file a part-year resident return in MI which will tax you on all your income for the portion of the year that you lived in MI. Then you will have to file a South Carolina part-year resident return that taxes you on all your income for that portion of the year that you lived in SC.

      You say you work for an internet company, so does that mean you work from home? If so, you should be fine with just these two returns. If you traveled to any other state and did work there you would have to file a nonresident return for the work you did there.

      After you move to SC, you don’t have to worry about MI taxes. The location of your company is irrelevant and you are not taxed in the state where your company is located if you didn’t live there and didn’t do any work there. If you fly back to MI to work that’s a different story, but as long as your in SC when you’re actually performing the work, MI shouldn’t tax it.

  257. Jane says:

    I started to work in MA in April 1st 2012, and listed our house in NJ for sale in Apr 1 2012 (and we bought a house in March in MA with intention to move to MA and to change my residency to MA). Our house in NJ was sold on early Nov. During Apr – Oct my husband was still working in NJ – thus we did not change our driver licenses (since our cars were insured by a NJ insurance company only covering address in NJ) until Nov 1 when we finally moved to MA.
    We will need to file part-time residence returns for both NJ and MA, and also NJ non-residence return for my husband’s income in NJ, right? If that is correct, should we treat April 1 as our residency change date? Or Nov 1 as residency change date? Or we need to have different residence start dates (April 1st for me and Nov 1st for my husband)?

    • Tax Advisor says:

      Hi Jane,

      The problem with residency is that it’s kind of subjective. It’s up to you to determine when each of you became a Massachusetts resident by spending some time on the Massachusetts Department of Revenue website. If you determine that you became a MA resident on April 1st and your husband became a MA resident on November 1st, then you two will most likely need to file separate state returns. You would have to file a NJ part-year resident return for Jan 1st-April 1st and a MA part-year resident return for April 1st-December 31st. Then your husband would have to file a NJ part-year resident return for Jan. 1-Nov. 1 and a MA part-year resident return for Nov. 1-Dec 31.

      On the MA Form 1-NR/P Instructions it says, “please not that a joint Form 1-NR/PY is not allowed unless each spouse is reporting income for the same resident or nonresident period.” This pretty much precludes filing a joint return. You can find it on page 8: http://www.mass.gov/dor/docs/dor/forms/inctax11/f1-nrpypdfs/nrpy-instructions.pdf

      Alternately, if you determine that you did not become a MA resident until Nov. 1st, then you and your husband could file joint part-year resident returns in NJ and MA and then you alone would have to file a nonresident return on the income you earned in MA before Nov.

  258. Ish says:

    Hi, I lived in and worked in Texas (no income tax state)last year, and moved to ohio exactly 6 months into the year. Then I lived in and worked in ohio for the rest of the year. Now that I’m filing my state return, I filed only for ohio but I need to show my texas earnings because I’m owing more by not showing texas earnings. Where would I put that on my ohio return? What do I have to do in this case pls help

    • Tax Advisor says:

      Hi Ish,

      You should be filing an Ohio part-year resident return that indicates that you were only an OH resident for six months of the year. This will tax you on ALL of your income for that portion of the year that you were an OH resident. If all of your Texas income was earned before you moved to OH, then you shouldn’t have to include it at all.

  259. Billy says:

    Hello,

    I am a full time resident of the Aloha State of Hawaii, my company is based in Colorado; I work over the Internet from my home in Hawaii. I receive a W-2 from my company in Colorado; I do not travel/commute to Colorado at all to work. Which State do I file taxes in?

    Thanks

    • Tax Advisor says:

      Hi Billy,

      If you are a permanent resident of Hawaii and you earned all of your money in HI, then you only have to worry about filing a HI resident tax return. It doesn’t matter where your company is located. As long as you were physically in HI when you did all of your work you only have to file in HI. The only scenario in which you would have to file for Colorado would be if you had flown there to do some work.

  260. Jane says:

    Thank you for the explanation. Sounds that it is acceptable to file PT residency return with NJ from Jan to Mar, and with MA from Apr-Dec (and my husband files non-residency NJ return for income during Apr to Nov). We will choose this option.

    Now the problem is that my company (based in NJ) withheld NJ state tax only for my income up to Nov by error – do you think that we will have trouble to get those tax refund from NJ and then pay MA? I am worried that we pay the income tax for my Apr-Nov income to MA, but could not get the refund from NJ. Any special procedure or form to get this kind of refund from one state to pay another state?

    • Tax Advisor says:

      Hi Jane,

      When you file a state return you’ll be able to claim a credit for taxes paid to other states. So on your MA return you should be able to claim a credit for the taxes you paid to NJ through withholding and vice versa. What usually ends up happening is if you overpaid one state, they will just transfer some of that money to the other state that didn’t get enough and then you’ll either owe the difference or get it back in a refund.

  261. Ursa says:

    I’m going to college in Florida. I have a apartment here also I work part time in Florida. Maryland is my resident state. Do I need to pay state taxes to them since I still have everything Maryland, such has license, registration, etc.?

  262. Jane says:

    By treating as MA residents from Apr to Dec, I calculated that we owe MA >5K of tax which was withheld to NJ by my employer based in NJ in error (?) . We will not be able to pay that much before I get the refund from NJ. I am wondering whether you know a solution for that?

  263. Harold says:

    My employer relocated me from PA to Ohio in August 2012. On my paycheck stub I noticed that they started deducting a city income tax in addition to state income tax. However, now that I have my W2, I see that they continued to deduct PA state income tax for the entire year of 2012, local Ohio city income tax, and no OH state income tax. My W-2 says my entire 2012 salary was earned in PA, but that is not right. Do I have to get a corrected W-2 from my employer? … I have to file an OH income tax return but with nothing withheld, will I be liable for penalties and interest?

    • Tax Advisor says:

      Hi Harold,

      Yes, try to contact your employer for a corrected W-2, but at this point it’s so close to the deadline that you might not get it in time. If that’s that case, you have two options. You can either request an extension (which you can do here: https://www.rapidtax.com/File-An-Extension/default.aspx) or you can just estimate how much was earned in PA and how much in OH, which might just be the easiest thing to do. Don’t worry about the OH withholding situation. When you file your OH return, you’ll be able to claim a credit for the taxes you paid to PA through withholding. Because you have essentially overpaid PA, it should transfer some of that money over to OH. Just be sure to correct this mistake with your employer as soon as possible.

  264. Gus says:

    Hi! I live in NYC and work for a company that is based in CA. I sold some of my employee option stocks. My employer withheld CA taxes and reported the sale of stock to CA. Is this correct? My employer said I have to file a non resident CA return with just the sale of the stock and a NYC return with just the income earned as a NYC resident..

    • Tax Advisor says:

      Hi Gus,

      Well, the first thing to note is that you now definitely need to file a CA nonresident return because your employer withheld CA tax, whether that was the correct thing to do or not. In fact, I’m not entirely convinced that you actually owe any CA tax. As a nonresident CA can only tax your income from CA sources. According to this page from the Franchise Tax Board: “The gain or loss from the sale of stocks or bonds has a source where you are a resident at the time of the sale.” (More here: https://www.ftb.ca.gov/individuals/fileRtn/Nonresidents_PartYear_Residents.shtml#StocksBonds) I could be missing something, but it sounds to me like this might actually be NY income. I would talk to a tax professional because I’m not entirely sure. But what I am sure of is that you will need to file that CA nonresident return, to get the money back if nothing else.

  265. Scott says:

    This is so interesting to me. So how does it work if I move from California to Oregon to live (buying an additional house there) half way through this 2013 year but my employer still resides in California. In addition, I plan to rent my old house in California. I hear that too complicates things. From what I believe you are saying I’ll have to pay income taxes to both states, but file a non-resident return in CA then? I think my state income tax bracket is 9.3% in CA and it will be 9% in Oregon. Is this correct and are there other things the state or federal government might additionally tax me on?

    • Tax Advisor says:

      Hi Scott,

      Actually if you move from California to Oregon in the middle of the year you’ll have to file a part-year return in each state. You’ll owe CA tax on all of your income for that portion of the year that you were a CA resident, and then you will owe CA tax on your CA source income for the period after you move. If you are still commuting into CA to work, this counts as CA income. If you physically perform your work in OR then CA can’t tax it. The income you derive from renting your CA house will also probably count as CA source income. I have no idea what income tax bracket you fall into, and there are numerous things states and the federal government can tax you on.

  266. Tina says:

    I am trying to figure out my boyfriend’s son’s taxes, here we go:
    He actually lived in Ft. Wayne, IN for about 10mos and in OH 2mos, his entire wages were earned in IN, but was only taxed for OH. When I started to do his OH taxes, the iFile site had his address for IN, his W-2 has OH (different city than what he lived for last few weeks of 2012). I believe I understand that he needs to file in OH and IN, how do I figure out what, if anything, he needs to file for local (ie. city, school districts, etc)?

  267. Larry says:

    We are in transition moving to a new job in Washington State. Washington has no state income tax. My wife is back in Colorado until our house sells. I have a temporary apartment in Washington State and working in Washington State. Once the house in Colorado sells and we find a new house in Washington, our household will be in Washington State. Until then, my primary residence is still technically Colorado as my car is still registered there etc. Is my Washington State employer obligated by law to withhold Colorado State income taxes from my wages?

    • Tax Advisor says:

      Hi Larry,

      I’m not sure if your employer is obligated to withhold taxes from your wages, but you’re certainly obligated to pay Colorado tax on that income as long as you are a CO resident. So it would probably be beneficial to you if CO taxes were withheld. That being said, if you will become a Washington resident fairly soon, it might not be worth changing your W-4, you’ll just owe a little to CO when you file next year.

  268. Nathan says:

    Hello, so I live and work in MA right now which makes my taxes easy, however I am moving to NH. I have an opportunity with a repair company based out of IL. I would be an employee not a contractor or consultant, live in NH, and travel to customer sites within the New England states (NH, ME, MA, CT, VT) to do repairs. Would I be paying IL tax? Do I need to pay ME, MA, CT, and VT state tax?

    • Tax Advisor says:

      Hi Nathan,

      You would not need to pay Illinois state tax unless you actually traveled to IL to do some of your work. Lucky for you New Hampshire does not have a state income tax, so you won’t have to file a resident return anywhere. But you will have to file a nonresident return in ME, MA, CT, and VT if you earn income there. Most states have a minimum amount of income you need to earn there before you have to file a return. So if it’s only a few thousand dollars in each state you might not have to file, but otherwise yes, you’ll have to do quite a few state returns.

  269. Pat says:

    Hi, my new husband is an Over The Road trucker and we have recently moved to New Hampshire which is a non income tax state. Does he have to file as non resident in every one of the states he drops a load in? How does that work for a trucker? Thank you!

    • Tax Advisor says:

      Hi Pat,

      Generally truckers do not have to file nonresident state taxes in the states that they drive through. Most state have special exemptions for truckers. However, to be sure you will probably want to check with the tax authority of every state where he performs work. Some might have a slightly different interpretation, for example driving through vs. loading.

  270. Subu says:

    Hi

    I live in Ohio but work in IL . will i be double taxed?

    • Tax Advisor says:

      Hi Subu,

      No, you will not be double-taxed. You will have to file a resident return in Ohio that taxes you on all of your income, and then a nonresident return in Illinois taxing you only on the income you earned in IL. On each return you will be able to claim a credit for the taxes that you have paid to the other state – this will prevent you from being double-taxed.

  271. Mark says:

    I live in Tennessee and have no interest and dividend income. I work in North Carolina in a Federal Government job. Do I need to file State Income Tax in NC.

  272. Jennifer says:

    I live in Delaware and work from my home office in Delaware. My company is in Pennsylvania. They have been only taking out PA taxes. And because Delaware has a higher rate I have been oweing Delaware each year. I was told that this year I had to pay a penalty to Delaware for not having enough withheld during the year.

    Because I live and work in Delaware – should they only take out Delaware taxes and not PA taxes.Or should they take out for both sates? I am told that Delaware does not have reciprocity with any state. Withholding is only required in the “duty assigned state”, (Is this PA or DE?)

    • Tax Advisor says:

      Hi Jennifer,

      You’re correct. They should only be withholding Delaware taxes and they should not be withholding Pennsylvania taxes at all unless you physically go to PA to do work.

  273. Terri says:

    We are a construction company based in Kentucky. We have jobs that are in Kentucky and Tennessee. When a person lives in Tennessee but works in Kentucky, do you withhold Kentucky taxes? When a person lives in Tennessee and our job is in Tennessee, do they pay Kentucky taxes? Asked the Kentucky Department of Revenue and they stated that both circumstances would pay Kentucky taxes. Is this correct?

    • Tax Advisor says:

      Hi Terri,

      It sounds to me like Kentucky taxes need to be withheld in the first case but not the second. In the first case, that person is a Kentucky nonresident and needs to pay KY taxes on all the income they earned in KY. Clear enough. But in the second case, if they are a Tennessee resident and are working exclusively in TN, then you should not need to withhold KY taxes. A TN resident should only have to pay KY taxes if he is working in KY. But then again I don’t want to tell you to disobey the Kentucky Department of Revenue. You might want to call back and speak with someone else just to clarify.

  274. Nathan says:

    I am currently living and working in Tennessee for the summer as an intern. I am from Louisiana and go to school in LA and will be returning to LA in August. How should I file taxes in this situation? Also if in this scenario I have to pay LA income tax then what would happen if I took a job in TN and moved out of LA to start work in December/January, would I still have to file LA taxes?

    • Tax Advisor says:

      Hi Nathan,

      As long as you are a Louisiana resident, you have to file a LA return and pay taxes on all of your income, no matter where it was earned. Luckily for you Tennessee doesn’t have an income tax, so you don’t have to worry about that. If you took a job in TN and moved there, you would have to file a part-year resident return in LA paying taxes on all your income for that portion of the year that you were a LA resident.

  275. Jamie says:

    In 2011 I worked as a traveler physical therapist and used my sister’s address in in California. My first assignment was in Massachusetts where I worked for 6 months. I left the traveler role and took a permanent position with a hospital in Massachusetts
    which then became my state of residence. While working as a traveler PT, residing in CA I received a federal tax break as my job was more than 50 miles from my home. I had my taxes prepared by a service that did not file a CA state return and just filed a MA state return. Subsequently CA has sent me a letter “Request for Tax Return” saying that they believe I need to file a 2011 California income tax return.. From reading some of the previous posts…. I realize that I do need to file a 2011 CA return. Since I have all ready filed a 2011 MA return …… How do I go about correcting this and avoid double taxation? Will I need to file an amended return for MA?

    • Tax Advisor says:

      Hi Jamie,

      Yes, you do need to file a California resident return. As long as that was your state of residence and your permanent home, you need to file a return there, even if all of your income was earned somewhere else.

      What you need to do for Massachusetts depends on HOW you filed there. If you filed as a nonresident then you shouldn’t need to amend that return. You can claim a credit on your CA return for taxes that were withheld by MA. This will prevent you from being double taxed. However if you filed in MA as a resident (when really you were still a resident of CA) then yes you do need to amend your return so that you are filing as a nonresident.

  276. Jamie says:

    Another point to mention is both W2′s only had MA state income tax withheld.

  277. Jerry says:

    I grew up and lived and worked in California till 1995. I was transferred to Oregon and lived there till I got a divorce in 1997. After that I worked all over the country on different projects. I bought a house in Oregon in 2009 for my daughter and husband to live. I had been helping them rent a house and this seemed to make financial sense. I was working in Texas when I bought the house. I then worked in Louisiana for a year and then was sent to our office in Houston for a permanent assignment. I visited my daughter about twice a year for a total of less than two weeks. I had not lived in Oregon for years and never planned to again.

    Recently an opportunity presented itself to work for another company that didn’t care where I worked, I am an estimator and so I took the job and am now working in Oregon.

    I just got four letters from Oregon Department of Revenue wanting to know why I had not filed from 2008 to 2011.

    I just read residency requirements and I don’t meet them, I didn’t consider myself a resident, I sure didn’t live there or work there.

    I think where I screwed up is putting the Oregon address on my federal returns after I bought the house. I just did it because I moved constantly and this was an address that wouldn’t change. I wasn’t trying to hide anything, I still don’t think it made me an Oregon resident.

    • Tax Advisor says:

      Hi Jerry,

      You did the right thing by reading through the residency requirements. If you really don’t meet them, you’ll have to get in contact with the Oregon Department of Revenue and make this case. Did you file as a resident anywhere else (I know TX has no income tax, but maybe LA?) Did you transfer your drivers license to a different state, did you register to vote somewhere else? These are the types of things that will decide whether you were a resident. If you’re still using an OR drivers license etc. they might actually be able to make the case that you were an OR resident.

  278. Jerry says:

    Thanks for the reply. I filed in Minnesota, California and Louisiana when I was working in those states. I haven’t had an Oregon license for many years, well before 2008. I had a California for several years then I got a Texas license in 2009. I still have the Texas license. I voted in the 2010 election in Texas and was called twice to serve on a jury. So how do I respond to these letters? Is it sufficient to tell them where I was living and working or do I need to have information from my employer and the places where I lived to prove it.

    • Tax Advisor says:

      Hi Jerry,

      I’m not sure exactly what evidence they will require of you. The best thing to do is just to call them and explain your situation. I’m sure they’ll tell you what information they need.

  279. jen says:

    We live in florida and my husband’s employer is in nyc. He is the only one in florida and does travel nationwide. Does he need to pay NY taxes?

    • Tax Advisor says:

      Hi Jen,

      He only needs to pay New York taxes if he physically travels to NY to do work. He does not need to file NY taxes just because his employer is located there.

  280. sam says:

    I currently own my company (group of collegues provide service to a company). I work in Texas, but a resident in Indiana. I stay mostly in Texas, that is have an apartment here, actually live here. I’m about to relocate but till the end of the year. As an owner of my company, do I need to pay income taxes to indiana? If yes…why do some of my colleagues avoid paying income taxes to their repective state just because their company is registered as LLC or coporation.

    • Tax Advisor says:

      Hi Sam,

      I’m really not well versed in the tax aspects of owning a business, but I can tell you as long as you are a permanent resident of Indiana you are going to owe them taxes on your personal income. I have no idea how your friends are avoiding taxes – or if that’s even legal.

  281. Cris says:

    Hi,
    I am a student who goes to school in Arizona but my permanent residence is Washington. I recently got a part time job and am in the process of completing my W-4. Will I need to file a tax return for Arizona at the end of the year (2013)? Even if I will not be making enough to receive any refund amount?

    Thanks!

    • Tax Advisor says:

      Hi Cris,

      Whether or not you need to file a nonresident return in Arizona depends on how much you make. If you make more than $5,500 in Arizona (or more than $15,000 overall) then you will have to file a return. And even if you make less than this, you should still file if any taxes are being withheld because you could very well get some of that back as a refund.

  282. jen says:

    thanks…he is probably there 3-4 days a month. does that make a difference

  283. Rodney says:

    Starting a new job and my contract states: You acknowledge and agree that, as the Company offices, your supervisor, operations and employees are all in the state of California, you will be considered a California employee and the company will submit payroll taxes for you in the state of California.
    I live in Colorado, my office is in Colorado and will have business travel across the US including California. Does the clause from my employer prevent me from filling a non-resident California tax return and a resident tax return in Colorado? Will I have to pay California taxes?

    • Tax Advisor says:

      Hi Rodney,

      You should ask your employer about this, but it sounds like you will still file as a Colorado resident, and then if you do any work in CA you’ll have to file as a nonresident there. They very well might withhold CA taxes all year long in which case you’ll have to file a nonresident return just to get them back.

  284. Luke says:

    I have internship in Oklahoma and go to school at Oklahoma State under the non-resident distinction. I live in Texas permanently. I assume I will need to file my taxes as a non-resident here in Oklahoma. Does this mean I will be getting the roughly 4.8% income tax back that was taken out?

  285. Kristi says:

    My husband lives in Michigan and is currently working in North Dakota. The company that he works for is based in Minnesota, which has a reciprocal agreement with N. Dakota. When he received his first check stub it showed that there are no Michigan taxes withheld, only N. Dakota taxes. I know that the guys from Minnesota don’t have to pay ND taxes, they continue to pay MN taxes, per the reciprocal agreement. But seeing as Michigan doesn’t have that, should taxes be withheld for both states? We just don’t want to wind up paying big dollars to Michigan at the end of the year.

    • Tax Advisor says:

      Hi Kristi,

      As long as he’s still a Michigan resident he will definitely have to file a resident return in MI and pay MI taxes on all of his income. This means that it’s probably a good idea to have MI taxes withheld. However, if the current arrangement continues, it won’t necessarily mean he’ll have a massive tax bill at the end of the year. It’s possible taxes are being over-withheld for North Dakota, in which case ND would just transfer some of that money to MI. But again, to be absolutely sure, he should probably withhold for MI.

  286. AL says:

    I live in Texas but receive unemployment benefits from Illinois – Do I have to pay income tax to Illinois on the unemployment benefits that I receive from Illinois while I am a resident of Texas??

  287. Dave says:

    Hi All,

    I moved to WI to my spouse’s place from Texas and work remotely for Madison WI for the same company in Dallas TX. Can i still claim Texas state tax benefit as my company is in Dallas TX or should i pay taxes to WI. My another question is i commute to my Dallas office once every month and all the expenses are to be paid by self . Can i claim any tax benefit for these non reimbursed expenses and can i claim any tax benefit for the non reimbursable office supplies and my work place as i use a portion of my home as my office

  288. Glenn says:

    I live in NH and considering a job in Vermont. I would have to file a nonresident tax form for the income earned in Vermont. Can I get a credit or refund for this situation on taxes paid to this state?

  289. Paul from Nashua says:

    I live in Nashua, NH. I am going to work for a company in Minnesota. The controller told me that they are NOT set up to handle an out-of-state employment. I do not understand his comment. He wants to pay me via a 1099. I have worked for many out-of-state comapnies and they never had this problem. The controller wants to pick my brain for some ideas on how he can handle it. I honestly do not see the problem of taking Fed Tax and Social Security out of my wages. NH has no state income tax. What do you recommend on how the controller can handle it?
    Thank you.

    • Tax Advisor says:

      Hi Paul from Nashua,

      As a tax filing company we don’t really deal with the withholding side of things, but this does sound a little ridiculous. As you pointed out, New Hampshire wouldn’t even factor in to the situation as there’s no income tax, so they would just have to worry about federal withholding and possibly Minnesota, which they would have to do for all of their other employees anyway. If I had to guess, I would say this sounds like an excuse for not making you an employee (and all of the obligations that comes with) and just keeping you as an independent contractor on a 1099.

  290. John says:

    Hi,
    I am a Florida resident and will be working in Texas. Any additional procedures for filing my income tax?

  291. Joe O says:

    I just moved to Texas (No State Income Taxes) and work from home. My company is in New Jersey and I will going into the office 4-5 days a month. Do I pay NJ state taxes on all of my income or not at all?

    • Tax Advisor says:

      Hi Joe O,

      You have to pay New Jersey taxes on the income that you earn while physically in NJ. At the end of the year you’ll probably have to file a nonresident return on all the income you received over the course of the year from those sixty or so days you worked in NJ.

  292. Zed from Florida says:

    Hi,
    I reside in Florida and this past summer I taught an online course for a school located in California. (The students who registered for the class are from all over the US some even residing abroad). Should I pay California state taxes? Thanks! Zed

    • Tax Advisor says:

      Hi Zed,

      No, you shouldn’t have to pay California taxes. As long as you are a Florida resident and were physically in FL when you performed the work you shouldn’t owe CA taxes.

  293. Michael says:

    I live in Texas but work in Oklahoma and on salary ,do I still have to pay Oklahoma tax since not being an hourly wage?

  294. Toia says:

    Hi,

    Since April 2012, I have been working both a FT and PT job in MD. I rent an apt in MD,as well. However, I still have my home and other property in Louisiana and did not transfer my drivers license or car registration to MD. I travel back to LA for 4-7 days every month but I am no longer employed in Louisiana. How long can I continue to claim LA as my permanent residence? Most of my business mail goes to my LA address. My employers withhold for the State of MD for tax purposes. Is it necessary to change my residental status? Am I okay to file for LA and expect a refund from MD? Thank you.

    Please advise

    • Tax Advisor says:

      Hi Toia,

      1) You can continue to claim LA as your permanent residence as long as you continue to meet the definition of resident. You should find the definition of residency on the Louisiana Dept. of Revenue website and see if you qualify. But based on what you’ve said I think it’s entirely possible you could still qualify as a LA resident.

      2) Changing your resident status is up to you, and I think it depends on how long you anticipate living/working in MD. If you plan to be working in MD indefinitely I’d say it’s probably a pretty good idea to just become a MD resident. You should also check out the definition of resident in MD, because I think it’s possible that you could also qualify as a resident in MD (especially if you have lived there for more than 184 days).

      3) If you are still a LA resident, you definitely have to file a resident return in LA which will tax you on all of your income. You also have to file in MD. If you are a MD nonresident, you need to file a nonresident return that will tax you only on what you earn in MD. However, if it turns out that you are a resident of MD too, you need to file a resident tax return there as well, which may mean that you will be double-taxed.

  295. Carl says:

    Hi I live in Maryland but earn my pay in ny .. My employer wants me to change my w-2 address to show a local address for union locality rules .. What are the tax implications for this? Thanks,c

    • Tax Advisor says:

      Hi Carl,

      I’m a little unclear about your situation. Do you physically do your work in MD or in NY? If you remain a resident of MD, you’ll have to file there. I’m guessing that you’ll have to file in NY too. At the very least, you’ll have to file as a nonresident to get the taxes that will be withheld back. But if you actually become a NY resident you may have to file as a resident there.

  296. Todd says:

    Hi,

    I currently live and work in VA but am taking a consulting job in Boston MA which will have me travelling during the week. I will plan to keep my residency in VA but am going to rent an apartment in Boston at least for the first year (I should be able to then “work” out of the boston office and go there only when necessary). I have seen about the resident/non-resident filing and am clear on that but wonder about the tax credit amount. MA has a higher rate than VA so that is nice but I’m curious how much tax relief I get from VA when I file the tax deduction from MA. All my income that I am concerned about will be earned in MA so if I have $4000 taken out of my taxes in MA, would that mean I get $4000 off my taxes in VA or is it only a portion of that? I know with normal deductions you only get about a 35% tax shield but just want to understand the amounts when deducting another state’s tax. Basiclaly I’m just trying to ensure if I will need to pay more to VA that I work that into my annual budget and don’t get surprised with a big tax bill at the end of the year. Thanks!

    • Tax Advisor says:

      Hi Todd,

      The credit you receive in Virginia will probably not be the full $4,000 that you end up paying in Massachusetts taxes. Because VA is your resident state they’re still going to take a chunk of that. If you are really concerned about very precise financial planning I suggest sitting down with an accountant.

  297. JA says:

    I have lived in Texas the entire year and have made my income in Texas for the year, but I’m moving to Arkansas before January. Will I need to pay taxes on the income I made while living in Texas because I’m moving to Arkansas?

    • Tax Advisor says:

      Hi JA,

      No, all of the income you earned in Texas while a TX resident you do not need to pay Arkansas taxes on. AR will tax you on ALL of the income you make AFTER you become an AR resident.

  298. Zed from Florida says:

    Hi,
    I reside in Florida and this past summer I taught an online course for a school located in California. (The students who registered for the class are from all over the US some even residing abroad). Should I pay CA OASDI/EE?

    Thanks!
    Zed

    • Tax Advisor says:

      Hi Zed from Florida,

      My understanding is that you do not have to pay any California taxes if you are not living or working in CA, however to be sure you might want to contact a CA tax accountant.

  299. Susie says:

    Hi,

    I live and work in PA as an independent contractor for a company based in CA. I receive a 1099-MISC for that income. I keep getting notices from CA that I need to pay taxes in CA. Am I wrong in that I do not have to file a return in CA? I have sent several letters, but I keep getting these notices about owing taxes. What should I do?

    Thanks,
    Susie

    • Tax Advisor says:

      Hi Susie,

      As long as you are a PA resident and you don’t physically do any work in CA, you shouldn’t have to pay CA taxes. I would call the CA Franchise Tax Board and explain your situation to someone.

  300. Kamil says:

    Hi,

    Beginning of next year 2014 I’m moving from Hawaii to Masachussets.
    I will continue working for the company in Hawaii, full time, however as a consultant.
    All consulting fees however will be paid to my newly created company, a sub-chapter S corporation filed in the state of Wyoming.

    Which states will tax me at the end of the year? Wyoming has no corporate income / personal income tax, so I’m not worrying about that one, but I do worry about being taxed twice for Hawaii and Masachussets.

    Due to my company being incorporated in Wyoming, is there an easier way to deal with the taxes? Any help would be appreciated. Thank you.

    Kind regards,
    Kamil

    • Tax Advisor says:

      Hi Kamil,

      You are only taxed in states a) where you are a resident and b) where you physically earn money. It sounds to me like you will stop being a Hawaii resident and become a Massachusetts residents halfway through the year. In this case, you will have to file a part-year resident return in HI and a part-year resident return in MA. If these are the only two states where you physically earn money you should be good.

  301. Kamil says:

    Side question: will the situation described above change if I were to work as an independent contractor, providing consulting services to the Hawaii firm through my corporation of which I’m the only employee and the owner (sole corporation), still living in Masachussets?

    Regards,
    Kamil

  302. Samantha says:

    I started an S-Corp in Virginia in 2006 while living here (I’m the sole owner). I am now ready to move back to my home state of North Carolina and establish residency, but continue to run the business from North Carolina. The business is primarily run by managers and and I will do what is needed by computer, with only occasional trips to Virginia for meetings, etc. Can I do that and will I pay taxes in both states?

    • Tax Advisor says:

      Hi Samantha,

      I strongly suggest you sit down and talk to a local accountant. I assume you can do what you’re suggesting but I’m not entirely sure. As for the tax situation, you would have to file as a resident in North Carolina, which would tax all of your income. Then if you are traveling back to VA and earning income there you will likely have to file a nonresident return there as well.

  303. frank lofrano says:

    Hello, I am Frank

    I currently live and work in FL. and , given a great opportunity to purchase a house in GA close to where some good friends of mine reside, I am thinking of making this investment. I would still reside and work in FL after doing so, just spending occasionally some
    time in GA from time to time. Now, given all this confusion about partial residence etc, since I would not be generating ever any income in the state of GA. would I still be under any obligation to file taxes in that state, for simply just owning a house there.
    Thanx a bunch..

    Frank L.

    • Tax Advisor says:

      Hi Frank,

      No, you don’t have to file an income tax return for simply owning a house. Depending on how much time you spend there, it’s possible that you could be considered a resident. But I would say that if you spend fewer than 185 days a year there, you won’t be considered a resident and you won’t have to file.

  304. Jason from Florida says:

    I maybe moving to California here in the next few weeks, but am currently living in Florida. If I do go through with the move to California (for a job), will I need to pay CA state income tax for 2013 considering that my income earned while in California will be less than the filing requirements established for all of 2013 (emphasis on income earned in California, since the income earned while living/working in Florida is not subject to state tax) and I will have only been living there for 5 weeks of the tax year?

    Thanks for any help!

    • Tax Advisor says:

      Hi Jason,

      As long as your total taxable California income is less than the filing requirement, you don’t need to file. Total taxable CA income includes everything you earn (anywhere) once you become a CA resident, and anything you earned in CA before you became a resident.

  305. Steve Ng says:

    I am a Texas resident. I got a job thru an agency/recruiter who is located in California, but the job with the company is located in Texas where I am working. So, basically, I still live in Texas and physically work in Texas, but I am the payroll with the agency who pays me after they got paid from the company I am working for. Do I have to pay the California Income tax? The agency took the CA income tax from my pay stub. Assume that I still have to pay the CA tax, at the end of the year, if I file the out of state income tax, will I get all of the tax money back?

    Thank you for your help.
    -Steve.

    • Tax Advisor says:

      Hi Steve,

      Yes, if they took California tax out of your paycheck, you will have to file a nonresident return in CA. However, because you neither live nor work in CA, you should get all of this money back in the form of a refund. I suggest you contact your employer and explain to them that you are a Texas resident who is living and working in TX. As such there is no need to withhold CA taxes.

  306. Christy says:

    Maybe you can help me. I am being told many differentt things… I live in Texas (no state tax) I work remotely from home – for a company based in SC… What should my with-holdings be? My company is saying that I wil still have to withhold SC state tax..?? I physically live & work in Texas – the company that I am working for is in SC..Help..

    • Tax Advisor says:

      Hi Christy,

      Generally, you would need to pay taxes to both and would have to file a resident return in the state where you live and a nonresident return for the state where you work. However, Texas does not have income tax and therefore you will not need to file income taxes for Texas. You will have to file a nonresident return for SC. A nonresident return only taxes you on the money you earned in that state.

      Good luck!

  307. Mish says:

    We live in Texas and are residents of Texas. My husband signed up with Company A in Oklahoma as a Consultant but he physically works for a Company B in Pennsylvania. So Company A in Oklahoma, pays my husband then charges Company B in Pennsylvania for the work that Company A paid my husband for. We will be receiving a 1099 at the end of the year from Company A only and it says Oklahoma on it because they are the one’s that pay my husband. Company B only pays Company A. So…question is… would we have to pay state taxes to Oklahoma as he doesn’t ever physically work there or step foot there… but they pay him…. AND/OR do we also have to pay state taxes to Pennsylvania where he physically works even though they don’t pay my husband so we will be getting no paperwork from them as I’m sure it goes to Company A in Oklahoma.

    • Tax Advisor says:

      Hi Mish,
      It sounds like your husband is employed by “Company A” in Oklahoma and since the 1099 is from that company, he will most likely have to file a nonresident return and pay nonresident tax for Oklahoma. To be sure, I suggest directly asking Company A ( I am sure others have the same question).

      Regardless, be sure he files a nonresident return for that state he is “working” in (in this case, Oklahoma). Since you live in Texas, your resident return is for Texas (however, Texas does not have an income tax and therefore you do not need to file a resident return).

      Good luck!

  308. Keith says:

    We currently live in California, I work for a NY based company as a telecommuter. They do have a physical presence in California I however do not work in that office.

    We are moving to Idaho next year, HR has said they are not equipped to pay Idaho taxes and they would continue to treat me as a California employee.

    Do I file a non-resident return with California to get back what was withheld from my paycheck then pay quarterly taxes to Idaho to avoid the under payment penalties?

    • Tax Advisor says:

      Hi Keith,

      For the state you are living in you will file a resident return. For the state you are “working in”, meaning the state listed on your work 1099, you will file a nonresident return. A nonresident return only taxes you on the money you earned in that state. It sounds like you will need to file resident return for Idaho and a nonresident return for California.

      Also, for the year you move, you will file a part-year resident return. A part-year resident return is for people who moved during the tax year. You will file a part year resident return for California and a part year resident return for Idaho. (Along with the nonresident return for California). We actually have an article about that. Here is the link to help you learn a bit more about this topic; http://www.rapidtax.com/blog/filing-taxes-in-two-different-states-what-you-need-to-know/

      Hope that helps. Good luck!

  309. Keith says:

    I’m a W2 employee of the company, how does that factor into the equation?

  310. Mabelline says:

    I live in North Carolina and work in South Carolina. How should i be filling? Should I be setting money aside?

    • Tax Advisor says:

      Hi Mabelline,
      For the state you are living in, North Carolina, you will file a resident return. For the state you are working in, South Carolina, you will file a nonresident return. A nonresident return only taxes you on the money you earned in that state.

  311. Kerstin says:

    I hope you can help me – very confused. I know you have answered this over and over again, but something is making me wonder about my situation. I live in Michigan, and work in Michigan, out of my house, as a remote employee for a NY state company. I do not work at the NY state office. Based on answers above, it seems I should only file Michigan state tax and pay taxes only to Michigan. However, doing research, I was reading about the “convenience of the employer” rule and how aggressive NY is about this rule, and that NY taxes nonresidents as if they came to the office every day. FWIW, the company does have a NY office, that I technically could go in and work at if I wanted to commute from MI to NY every day. I was originally hired when I lived in NY, but have since moved to Michigan, and am a Michigan resident, and have become a remote employee (along with about 20 other remote employees the company employs.)

    • Tax Advisor says:

      Hi Kerstin,
      For the state you are living in, Michigan, you will file a resident return. For the state you are “working in”, meaning the state listed on your work 1099, you will file a nonresident return. A nonresident return only taxes you on the money you earned in that state. I suggest asking the company you work for (I am sure they have had other questions like this). It sounds like you will need to file resident return for Michigan and a nonresident return for New York.

      Also, for the year you move, you will file a part-year resident return. That means you will file a part year resident return for both states you lived in during the year.

  312. Kerstin says:

    Hi – I forgot to mention regarding above – I moved to Michigan from NY part way through the year, In April 2013. And I lived in NYC, NY, if that makes any difference. Just wondering how I file this year?

  313. Kerstin says:

    Thanks so much for your response. I don’t receive a 1099, though. I’m not a freelancer. I receive a W2, I am a FT employee, and the address on it is Michigan. Does that change things? Would I still need to file a non-resident return in NY?

  314. tony boznak says:

    Hi, I would like to know if you can help me with this.

    I have just received an assessment from the state of GA for some back taxes for 2009.
    I have been a resident of FL now for 4 years and I am receiving a private pension from my former employer
    which is homebased in GA. I wish to add I started receiving my pension as a resident in FLA and never had any witholding taken
    from it by the state of GA. Here is my question.

    If I choose not to pay the assessment, can the state of GA garnish my pension on the basis that my former employer is headquartered
    there, or am I way off base with my concern. Thanks in advance,

    Tony.

  315. Alex says:

    Hey tax advisor… I live in Michigan and justed started a job with an insurance company that travels a lot. My training was in Texas so I worked there. My first check had a Texas witholding tax of $165 and a Michigan withholding tax of $55… ($1300 gross pay check)

    Texas does not have a state income tax but Michigan does. So I understand the $55 tax to Michigan or 4.35% rate on my income. Can you explain the Texas withholding tax of $165 that was taking off my first check and will I get that money back. I don’t understand why a state with no income tax can tax me. I feel like I am getting doubled taxed. Thanks

    • Tax Advisor says:

      Hi Alex,

      You are right, Texas does not have state income taxes. However, the reason why there were taxes taken out from your Texas pay check are because of federal income taxes, Social Security Tax an Medicare Tax. How much is taken out has a lot to do with the number of personal allowances you claimed on your W-4 form.

  316. Jenny says:

    hi,
    I used to live in Virginia for 4 years. So in the first 6 months of 2013, I still lived and worked in Virginia.
    After that, I married and moved to Florida with my husband. Now i live and work in Florida.
    So what should I do when I file the tax? Should I file all tax in Florida with my husband?

  317. Kerstin says:

    Hi there – I think you didn’t catch my response/question above, from Nov 7th – I’m not a freelancer and do not get a 1099. I am a FT employee and get a W2 and the address on it is Michigan. So I’m a regular FT employee working and living in Michigan, for a company located in NYC. I moved to MI April of this year. How would I file my taxes this year? Thanks so much, in advance -

  318. Stephen says:

    Hello.. Here is my situation- I am a legal NJ resident, but I am currently living and working in FL. FL is one of the states that does not without state income tax, however, NJ does. Since I am an NJ resident, will I owe money back to NJ when income tax time rolls around? I worked in NJ up until August, and I have worked in FL from August to present. On my pay stub, I have realized it says NJ tax, but no tax has ever been taken out since I have left NJ.

    So the general question is will I be penalized come income tax time and owe a lot of money back to NJ? I appreciate your response. Thanks!

    • Tax Advisor says:

      Hi Stephen,

      You will file a part-year resident return for NJ, which means you will be taxed in NJ for the months you lived/worked in NJ. For the months you worked and lived in Florida you shouldn’t be taxed. Generally, you would file a part-year resident return for NJ and a part-year resident return for Florida, however, since Florida doesn’t have state taxes, you will only have to file the part-year resident return for NJ.

  319. theresa says:

    Hello i was wondering my husband and i live in nh ( no income tax) he works in vermont and every year we end up having to pay additional state tax to vermont even though he has it taken out every pay period should he be filing a separate tax form without my NH income involved we always file married jointly but should he do the state tax separate?

    • Tax Advisor says:

      Ho Theresa,
      Yes, he should file a non-resident return for Vermont and would normally file a resident return for the state you live in. Since NH does not have a income tax, he will not have to file a resident return and only the non-resident return for Vermont.

      I suggest filing together for federal taxes and separately for state.

  320. Donna says:

    Hi–I lived and worked in California until I moved to Washington in August. Since August I continue to work in Washington for the California employer. Although I am not physically working in California, but my employer is and my paycheck comes from California do I file a non-resident return for California in the future? How do I file this year?

    Thanks in advance!

    • Tax Advisor says:

      Hi Donna,
      Since your company is based in California you will file a non-resident return for California in the future. This will tax you on the income received from the state of California (where your employer is). You won’t have to file a state return for Washington (as long as you live in the state and not DC) because the state of Washington does not have an income tax.

      For this year, you will file a part-year resident return for California and a non-resident return for California for the months you lived in Washington.

      Best of luck!

  321. Louis says:

    hello – I am wondering how I file this year, and the upcoming years. I was living in Manhattan, and working for a company based there. I moved this last June to Illinois. I still work full time for this company, from my home in Illinois, and my W2 has been changed to my Illinois address.

    Can you help explain how I file this year, and then how I file in upcoming years, still working under this situation – working as a full time employee for an out of state company?

    Thanks for insight -

    • Tax Advisor says:

      Hi Louis,
      If the company is out of Manhattan, in future years you’ll need to file a non-resident return for New York and a resident return for Illinois. For this year, you will file a part-year resident return for Illinois and a part-year resident return for New York.

      Best of luck!

  322. Kelly says:

    Hello,

    I have a question. I moved from Virginia at the beginning of 2013 (Jan. 5th), This year I did not earn any money in VA. I moved to Florida where there is no state income tax. However, I never changed my drivers license to a Florida license until about October. I fully intended on moving to FL permanently, but just slacked on getting the license changed. I did sign a year long lease, I do work full time here.

    Will Virginia expect me to pay state income tax up until the time I switched my license?

    • Tax Advisor says:

      Hi Kelly,
      You would only have to file states taxes for VA if you received VA income of $11,950 or more. Saying that, you won’t have to file any state taxes, considering Florida doesn’t have an income tax.

      That means, you’ll just have to file a federal return. The IRS will start accepting returns on Jan 31st but you can prepare your federal return now on RapidTax (and your return will be submitted to the IRS automatically on Jan 31st).

      Hope that answered your question. Best of luck!

  323. Paul says:

    Hello,
    I run a company out of DE. I have several employees that live in MD, but work in DE. Currently we withhold DE state taxes, and any applicable MD local taxes. However, we do not withhold MD state taxes. Am I doing this incorrect, and if so, please clarify the proper way I should be withholding, and how this affects my employees end of year returns.
    Thanks.

    • Tax Advisor says:

      Hi Paul,
      Every state has different tax laws, so it’s best to check with DE (since your company is run out of DE). However, it sounds like you are doing it correctly! Do note, it’s the MD employees responsibility to file a resident return for the MD (the state they live in) along with a non-resident return for DE (along with their federal return of course). The non-resident return will only tax them on the income they earned in DE. You can make them aware of this responsibility.

  324. Stacy says:

    Hello,
    I live in DE. However, I just excepted a job that the head quarters in IL but I will be working at a plant in PA. Will I be taxed for all three states? And how do I make sure I’m paying the appropriate amount of taxes?

    • Tax Advisor says:

      Hi Stacy,
      Your job will probably take out either IL taxes or PA taxes (in addition to your DE taxes). When you file your state taxes, you’ll file your resident return for DE and a non-resident return for IL or PA (whatever one they take out).

  325. Steve says:

    Hello,
    I live in Texas with a lease and work as a paid volunteer through Americorp but I have an Alabama DL. How would I file my state taxes if any in Alabama? I don’t necessarily have income it is a under $12000 a year “living stipend”.

    • Tax Advisor says:

      Hi Steve,
      Volunteer for Americorp..That’s great! Anyways, you will have to file a non-resident return for Alabama if your income is more than $1,500 from Alabama sources.

  326. Jacob says:

    Hello,
    I live in NH, but own a company (llc) in Massachusetts. I work from home in NH. Do I have to pay Mass taxes on the income I make from my company?

  327. kokala says:

    I live in CA but work in Utah. How would I go about paying my tax. Does my employer take out tax for each or either state?

    • Tax Advisor says:

      Your W2 will show you what state taxes are being taken out. You will file a non-resident return for Utah and a resident return for CA. As a non-resident of Utah, you will only be taxed on income received from Utah sources.

  328. Jeff says:

    My family and home are in Nevada, but I work less than 3 days a week in Arizona as my sole source of income and my wife works exclusively in Nevada. I have no residence in Arizona, but I did get an Arizona drivers license and register a car that I keep in Arizona to keep the local police happy (which is separate from tax issues… I think). I am on “temporary” job assignment until I am recalled from furlough back to Nevada, but that could be years. I am getting the impression from what I am reading on Arizona law that if I have no residence, have no children in Arizona schools, I am in Arizona less than 50% of the time and I need to file but I am exempt from state income taxes and claim a 100% refund. Arizona non-resident tax forms have me Married Filing Separately, then instruct me include my wife’s Nevada income?

    Does any of this make sense?

    • Tax Advisor says:

      Hi Jeff,
      For state taxes, you will have to file a non-resident return for Arizona. You will be taxed on only the income received from Arizona sources (I am guessing your company is out of Arizona).

      Nevada does not have income taxes, which means you won’t have to worry about filing state taxes for Nevada (for you or your wife).

  329. Julia says:

    I am a contractor and I moved from Alabama to live and work for a company in Florida from February to mid-June of 2013. My direct employer, however, had its headquarters in Virginia. Then I had to move for work again and from mid-July to end of October I lived and worked in Tennessee for a different company but with the same employer. The employer withheld state taxes for Virginia from my paychecks all this time. From November I lived and worked in Tennessee for the same company (same job) but with a different employer, which physical address in Atlanta, GA as stated on my W2. This new employer did not withhold any state taxes from my paychecks. I really don’t understand what forms I need to file and with which state and I don’t have $100-$200 to go to HR-Block or other agencies to file my taxes. Please help!!!

    • Tax Advisor says:

      Hi Julia,
      No problem, you can file your taxes on RapidTax for a very reasonable price.

      Anyways, basically you will have to file non-resident returns for all the states you received income from but did not live in. You will file a part-year resident return for the states you lived in (and also worked in). As a non-resident of a state, you are only taxed on the income received from sources in that state. If you were taxed by a state that you shouldn’t have been taxed by, you will file a non-resident return for that state as well.

      It’s good to know that Florida and Tennessee does not have income taxes, so you won’t have to worry about filing any state taxes for either.

      When filing your taxes on Rapid, our application is step-by-step and straightforward. That means, you’ll simply check a box to add income from a state you worked in. If you have any questions while doing so, our support team is standing by via phone, live chat or e-mail to help! Best of luck.

  330. Sam says:

    I live in Alabama but worked in both Alabama and Florida, where there is no state income tax. I am assuming that I need to pay on the income earned in Florida, but my return is not showing up as such. How can I be sure I am filing correctly?

  331. Marge says:

    I moved to Missouri from Wisconsin on 5/10/13. However I purchased a home in Missouri on 2/28/13. I got my Missouri drivers license on 6/20/13. That said, I was asked to continue working remotely which I did until 8/2/13 and then retired. Do I have to pay Misssouri taxes? From what date?

    • Tax Advisor says:

      Hi Marge,
      For Missouri you will file a part-year resident return. That means you’ll be taxed by Missouri for the time you lived there (5/10/13).

      • Marge says:

        Do I also file a part year resident return for Wisconsin? Do I split the income, i.e. Wisconsin earnings up to 5/10/13 and then Missouri earnings from that date until 8/2/13 (even though I was working remotely for my company based in Wisconsin)? Is this considered Missouri income? Or Wisconsin income?

  332. Jen says:

    Hello! I live in Maryland and work full time in Maryland, however last year I earned Miscellaneous Income, non-employee compensation, in Delaware. In reading the instructions, it looks like I can claim it on my 1040 under line 21 (sporadic activity or hobby) as it is not self-employment income or part of my regular job. However, am I required to file a Delaware non-resident return for this income? It is over $600.

    Thank you for your assistance!

    • Tax Advisor says:

      Hi Jen,
      Yes, that’s right as long as it’s a non-business activity you can report it there. If the income is from a Delaware source, than yes you will have to report it on a non-resident return for Delaware.

  333. Keith says:

    My wife and I own a home in Arizona, this year I worked in Arizona from January to March. In March I took a job in Washington, (which does not have an income tax) where I have been living ever since. My wife is still living and working in Arizona until our son graduates from high school at which point she will move to Washington. My question is do I only file Arizona taxes for the 3 months I was living there and should we still file jointly?

    • Keith says:

      Also it should be noted that on my W2 form my Washington employer shows my Arizona address.

    • Tax Advisor says:

      Hi Keith,
      Normally, you would have to file a non-resident or part-year resident return for Washington, but you won’t have to considering they don’t have an income tax. I would suggest filing jointly for both federal and state. For your state return, you’ll file a resident return for Arizona (considering you lived there during this year and also worked there part of the year), you will report all of your income received (from both Arizona and Washington).

  334. Ray says:

    My husband and I moved with his company from one city to another in GA in October 2013. In October, he started working in FL. I understand that we will just file a resident return for GA and nothing for FL. However, on the federal copy of his W2 box 15 says TOTAL STATE and only has a state income tax listed in box 17. On the GA state copy of his W2 box 16 and 17 are filled in and then on a second GA state copy page (sent separately) it has a different amount listed in box 16 and 17. i have looked online and cannot figure out what to do about TOTAL STATE or the different amounts for the state copies. any advice would be greatly appreciated!! Thank you!

  335. Ray says:

    well, i think i found the answer. thank you anyway!

  336. Kevin R says:

    My wife & I are legal residents of AZ, which has a state income tax. She took a job and moved to Texas (no state income tax), living there 11 months out of the year in 2013. What are our tax consequences for the State of Arizona with her income? Should we file separate returns to offset these consequences (or is that even an option?)?

    Thank you

    • Tax Advisor says:

      Hi Kevin,
      You should file separate state returns. If your wife received any income from AZ sources, she should file a non-resident return for AZ, reporting that income. She won’t have to file a resident return for Texas because they don’t have an income tax.

  337. Jessica says:

    Hi! I had a quick question. If you live in Idaho and Work in Wyoming(no state income tax) do you have to pay idaho state income tax for the amount made? When I endered the W-2 for Wyominh the state refund do went up a lot.

  338. Pat says:

    My daughter lived in WA state, she has lived in WA her whole life) from 1/1/13 to 8/31/13. She moved to CA on 9/1/2013. She works for the same company (Starbucks) in both states. She is working and is in the process of getting her one year residency so that she can apply to a CA college this coming fall and pay CA residency tuition As you know, WA state does not have an income tax. My question is what form in CA does she complete and should she complete this as a resident or a non-resident?

    • Tax Advisor says:

      Hi Pat,
      Your daughter will most likely need to file a part-year resident return for CA, reporting her income to CA. The reason she would file a part-year resident return is because she moved from WA to CA (and therefore considered a resident for part of the year).

      However, it’s good to note, if she lists her primary residence as WA, then she can instead file a non-resident return for CA (since she spent more time during the tax year in the state of WA) and would therefore be considered a WA resident.

      If she files on our website, the application is designed for this type of situation to be straightforward and simply to complete. (Basically, she would check a box stating she earned income from an additional state and would then enter the CA income.)

      Best of luck!

  339. Nrodriguez says:

    Hi!

    My situation is: I live in Colorado. From January to July I worked and lived in Colorado and from July to December I worked from home for Indiana, living in Colorado.

    So, from what is written here I’ve understood that I should file my resident Colorado taxes (including all my earnings in both jobs) and then file Indiana’s non-resident taxes with the income generated by my new job in Indiana.

    Then it is written that I should claim credit for the taxes that I’ve already paid to another state through withholding. That will be the taxes related to the income generated in Indiana? And when and how should I claim for that?

    Thanks a lot,

    N. Rodriguez

    • Tax Advisor says:

      Hi N.Rodriguez,
      Yes, that’s right, file your resident return for Colorado and a non-resident return for Indiana. Basically, if you are taxed twice, you can get credit for the double taxed amounts. The state section of our website is specifically designed for situations like yours. When you are filing on your own is where it gets complicated. You will simply follow step-by-step on our website and will receive the maximum refund possible.

  340. Bud says:

    I live in colorado and work remotely from home. Company is in Ohio. I did onsite work for 3 weeks in ohio, the rest of the work was done remotely in CO. State taxes were taken out for Ohio. How do I file?

  341. Michael says:

    What if I moved to Georgia on March 15th from Texas. Technically I became a Georgia resident on March 15th. On March 16th, I received a check for the work I performed in Texas (from March 1 – March 14th). Would Georgia State tax me on the amount for the services performed while I was a Texas resident from March 1 – 14th?

  342. Andrea says:

    Hi!
    I am a full time student and live in IL. I worked in IL and also worked in IN during school. Do I file taxes both states? If so, do I include the out of state earnings with the resident state earnings or will the earnings only apply to the amount earned in each state?

    Thanks,

    Andrea

  343. Jake says:

    Tax Advisor,
    I live in Florida and work for a company that is based in New York. I travel the USA as Director of Sales and spend very little time working in New York. What can I do to get a refund of the NY state income tax that my employer deducts from my compensation?
    Thanks for your help.

  344. Mark Guy says:

    I’m a resident of California but took a job working for the Senate in DC. While there I also waited tables on the weekends. The Senate did California withholding while the restaurant did DC withholding. Then, when the jobs ended, I filed for unemployment in DC, assuming that was where I needed to file since I had been living there for nearly a year, and moved back to California where I looked for work while I received my unemployment.

    How do I handle this?

    Thank you!

    • Tax Advisor says:

      Hi Mark,
      State residency is determined on what state you lived in for the most time during the tax year. If you consider yourself a resident of California for 2013, you’ll have to file a resident return for California and a non-resident return for DC.

      You’ll only be taxed by DC for the income received from DC sources.

  345. Rosemary says:

    I lived and work in AZ all of 2013. I am legally married my spouse lives and works in NV how do I file AZ State income taxes?

    • Tax Advisor says:

      Hi Rosemary,
      You can file a joint resident return for AZ, reporting both of your income (even the NV income). Your spouse would generally have to file a non-resident return, however, NV does not have an income tax, meaning only a resident return for AZ is needed.

  346. Steve says:

    Tax Advisor,

    I live in Texas and am about to start employment in Louisiana. There is no state income tax in Texas, but as a home owner, I pay very high property tax instead. In Louisiana, there is a state income tax. If I have to pay a 6% Louisiana non-resident income tax AND my very high Texas property tax, I’m paying almost double the tax amount.

    Can I deduct the non-resident Louisiana state income taxes from my federal taxes?

    • Tax Advisor says:

      Hi Steve,
      As much as it’s not fun to pay taxes, you do have to file a non-resident return and pay taxes on all income earned from the non-resident state sources and can not deduct these taxes, even if you pay high property taxes in your home state.

  347. Otto says:

    I am a resident of California and did a 4-month internship in Florida which has no state income tax. I am wondering if all I need to do is to file a California income tax return? Is there a tax credit on the FL income that I can claim due to that state not having income tax? Thanks.

  348. Jayde says:

    Ok I love in Louisiana work overseas and spend less than 6 months a year home. Should I have to pay a full year of state taxes to Louisiana?

  349. James says:

    Hello.

    I have a new job. The company is a foreign company and this company has a US subsidiary at Delawere.have Under this Dalewere EIN, they have another 4 legal regional offices in 4 different states. I will be belong to their NJ office. However, I will have to work at MI. I am MI resident.

    In this case, Do I have to report the state withholding tax and unemployment tax to NJ and MI both?

    Thank you.

    • Tax Advisor says:

      Hi James,
      I suggest contacting the company to ask them. However, if MI taxes are withheld and NJ taxes are withheld, you would file a resident return for MI and also file a non-resident return for NJ. Regarding NJ, you’ll only be taxed on the income you received from the NJ source(s).

  350. jerry blaylock says:

    I have a permanent residence in az. I worked three months in florida. Do I pay taxes in az for my work in florida. I had a residence there.

  351. Lynn-Marie says:

    I live in Idaho (an income tax state). I am going to work for about 6 months in 2014 as a contracted (1099 only) person for a firm in Texas, but will be working in Minnesota (an income tax state). I intend to pay quarterly taxes since I am basically self-employed (contractor) to Feds and Idaho. My residence (own a home, cars will remain here and remain licensed here, driver’s license here, family here) will remain Idaho.

    So do I even need to concern myself with Minnesota Income Tax filing?

    Thank you.

  352. Tracy says:

    Hi there,

    As an employer in NH, we have an employee who now resides and works from home in AZ. Should we be withholding AZ tax from the employee’s check?

    Thank you!

  353. Sharif says:

    Hello!
    I was a resident of south carolina in 2013 and was working as a research assistant at university of south carolina. Then I got a new job in manhattan december 2013. I worked in manhattan,NY for 1 month and them came back to south carolina and moved to a newjob in North Carolina in 2014. But I was not a resident in New York. Please suggest me about TAX Filing. Do I pay taxes for both the states?!

    Regards
    Sharif

  354. Tom Pandolfi says:

    I live and work in MA and my company is located in CT and they took CT state income tax out in addition to MA taxes. I spend nor work in CT at any time

    • Tax Advisor says:

      Hi Tom,
      If your company is located in CT and you live in MA, then it’s correct that state taxes are taken out for each state. It’s good to know, you might be eligible to claim a credit for this.

  355. LE says:

    HI,
    I LIVE IN NEW YORK STATE, BUT I WORK IN FLORIDA. I KNOW I JUST NEED TO FILE NY STATE RETURN, IGNORE FLORIDA. HOWEVER, HOW TO REPORT INCOME TAX IN NY STATE AND CITY? PART-YEAR OR ALL YEAR? I STILL LIVE IN NY STATE

    • Tax Advisor says:

      Hi “LE”,
      If you lived in New York State for all of 2013, you will file a resident return for New York and report all income received from any state. If you moved during 2013, you will need to file a part-year resident return.

  356. amber says:

    I am about to start a new job, the company is based in Hawaii and I live an work in CA. They want me to use the business address as my residence and my home address as my mailing. Will this create a tax problem at the end of the year. Will I simply file a non residence in Hawaii and a residence in CA? My problem is using a Hawaii address as my residence?

    • Tax Advisor says:

      Hi Amber,
      I would suggest only using your address as your resident address (considering that is where your residence is).

      Regarding filing state returns, you are right. You will file a non-resident return to Hawaii and a resident return to CA.

  357. Sharif says:

    Hello!
    I was a resident of south carolina in 2013 and was working as a research assistant at university of south carolina. Then I got a new job in manhattan december 2013. I worked in manhattan,NY for 1 month and them came back to south carolina and moved to a newjob in North Carolina in 2014. But I was not a resident in New York. Please suggest me about TAX Filing. Do I pay taxes for both the states?!
    Regards
    Sharif

    • Tax Advisor says:

      Hi Sharif,
      You will need to file a resident return for SC, reporting all your income, from all state sources. You will also need to file a non-resident return for NY, reporting only your NY income.

  358. Scott Williams says:

    I live in Michigan but work in Indiana. My company says the don’t take out Michigan state taxes because they don’t have anything to do with my state. I have never heard of this before, so how do I calculate my own Michigan State tax

  359. Judy Walters says:

    I live in Fort Worth, Texas and work in Fort Worth, Texas but my employer somehow had my home office in the computer as Iowa. Now they have taken Iowa State Tax out of my check for the last year. Texas is a state that has no State Tax.
    What do I do. I did find a form lA 126 from Iowa (Nonresident and part-year resident credit). Do you know exactly what I need to do to get that money returned to me.

  360. Heather says:

    Hi,

    I am a freelance designer who lives and works out of my home in Nevada with a very complicated tax situation. The only thing not complicated is that NV does not have state taxes.

    I previously lived in CA, but left the state in Dec 2012. However, my last paycheck and my vacation time was cut to me in Jan 2013. So, I received a 2013 W2, even though technically I was not living or working in the state at that time.

    Since moving to Nevada, I have become a freelance graphic designer, with most of my clients, including my previous employer, being located in CA. These clients in CA send me 1099′s. I only worked here in NV for these jobs, and did not travel to CA for these clients. Do I have to file CA state taxes on those wages?

    Also, to complicate the situation further, I was married in 2013 and my spouse is active duty military. His “home of record” is Missouri, and since we filed Federal Taxes jointly, he had to file my information to the state of MO as well. Because of his military status, he will receive all of those state taxes back as he does not currently reside or work in MO. I am trying to make sure that we don’t have to jointly owe taxes to the state of CA, as my spouse has never worked or earned income from that state.

    Thank you so much for you help.

  361. kevin says:

    I am thinking of moving to Nevada and working remotely to my company in Illinois. I will be visiting Illinois quite often to work there. Come tax season do I have to file taxes for Illinois as well as Nevada? Is there a cut off day that someone is considered a resident of Illinois?

    • Tax Advisor says:

      Hi Kevin,
      Nevada is an income tax free state. That means, if you are a resident of Nevada and working for a Illinois company, you will file a non-resident return to Illinois and report your Illinois income. As a non-resident of Illinois you would only be taxed on your Illinois income.

  362. Terri says:

    My husband is a green card holder, we live in MN but he still works for his Canadian employer remotely. I am filing our federal taxes married filing jointly and using the foreign tax credit. We are full year residents in MN this year. When I complete the return I’m including both of our incomes, however, it looks like we owe MN money because it’s making us pay MN tax on my husband’s Canadian income. I looked at using form M1CR to receive a credit but it says you can only request a credit if you have paid tax to both Canada and MN for this income. We haven’t already paid tax to MN for the Canadian income, but it doesn’t seem right that we would have to pay tax to them, if he’s paid the tax to the Canadian federal and provincial governments. Not sure what to do at this point….

    • Terri says:

      Hi, just a follow up that I called the State of MN revenue department and they said to fill out M1CR – that before we complete Form M1CR the MN state tax return is requesting payment from us, so that is considered the MN tax paid. In other words, if we didn’t fill out the form we’d be paying it. Whew!

  363. maria says:

    hello my name is maria. I work in Virginia but 2 years ago I moved to md, and I didn’t change my address in my job.my va withholding is $1068. do I have to pay md taxes?

    • Tax Advisor says:

      Hi Maria,
      It depends what address you list as your address on your return. If your main address is the Virginia address, you will have to file a resident return for Virginia and only pay Virginia taxes. If you list your main address as your MD address, you would have to file a MD resident return and a non-resident return for Virginia. Meaning, you would have to pay MD taxes.

  364. Samuel says:

    Hello,
    I am a resident of Texas. I relocated at the end of 2012. I work for a company that is based in Georgia. For 50 (non consecutive) days in 2013, I traveled to and worked physically out of our office in Georgia. The other days I spent working remotely from my home in Texas. My employer has withheld Georgia state taxes for the entire 2013 year. Am I required to pay Georgia state taxes for the entire year, just for those 50 days or not at all (in which case am I entitled to a refund)?
    Thank you.

    • Tax Advisor says:

      Hi Samuel,
      You are required to pay tax on your income from Georgia sources. That means, you will file a non-resident state return for Georgia, reporting the income earned from Georgia sources.

      • Samuel says:

        Thank you for responding. So, contrary to some other advice that I have received, it does not matter where I reside. What matters is where my employer is located?

  365. Steve says:

    Hello,

    Here is my question.

    I just recently moved to Florida and I am looking for a job. I am a Maryland resident and I have not changed my residency over yet because I still own a house in Maryland and I do not want to change my residency until the I am sure the job department works out.

    So if I end up taking a job but I am still a Maryland resident, will Florida take out state income taxes and send them to Maryland until I claim residency in Florida?

  366. Joyce says:

    My daughter attended school in LA. and has since graduated and found a job there. We are from IL. and she still uses our address in IL. She did not work in IL in 2013, but did work in Utah for a month and has her current job in LA. Does she file resident state tax in IL and then non-resident for CA and UT? On the bottom of her W2′s, each one has the name of each state she worked in.

    Thanks for any help.

    • Tax Advisor says:

      Hi Joyce,
      Your daughter will have to report all income she received from that states she is not a resident of on non-resident return. It sounds like she worked in LA and UT? In that case, she will file a non-resident return for LA and UT while filing a resident return for IL.

      Our tax filing application is actually designed to make situations like your daughters easy to file multiple state returns. In the state section, she will simply check a box stating she earned income from additional states, and then will be guided to enter that income information.

  367. Garrett says:

    Hello

    My company is relocating my job from GA to NJ this year. It more than likely will be in June. I plan on keeping my family in our home in GA so my kids can go to the schools we love. I will have a rental property in NJ but will try to use my home in GA as my primary residence. Will I be required to file taxes in both states? I plan on trying to find a job back in GA

    Thanks

    • Tax Advisor says:

      Hi Garrett,
      Yes, you will file a resident return for GA, and a non-resident return for NJ. As a NJ non-resident, you will only report the income earned from NJ sources.

  368. Russ says:

    Hey

    I live in texasm my company is based out louisiana, but i work offshore in gulf, Do i still get taxed by louisiana…

  369. Robin says:

    this whole thing is very confusing to me, I live in NY state and am considering a position with the VA medical center having a duty station in PA. who taxes me? how does this work?

    • Tax Advisor says:

      Hi Robin,
      To sum it up, for the state you live in, you file a resident return and report all income earned, regardless of what state it is from. For states you do not live in but work in and receive income from, you file a non-resident return. As a non-resident you are only taxed on income earned from that state’s sources.
      Your employer should take out both NY taxes and PA taxes from your pay.

  370. erik says:

    I live AND work in CT. The company i work for performs a percentage of its work in NY. As an employee should i be taxed for the work i perform in NY. Or is my employer only responsible for this?
    Thank you in advance………..

  371. David says:

    My wife is currently self employed (works at home) in Massachusetts as a contract worker. The company she works for is looking into making her an employee vs a subcontractor. The parent company is out of New York or New Jersey. Since she works at home, we would only need to file Mass income taxes correct? (Not to NY or NJ depending on what the decide) Also, would her employer be required to withhold Mass taxes? Thank You,

    • Tax Advisor says:

      Hi David,
      She will most likely need to file a non-resident return to New York or New Jersey as well as her resident return to Massachusetts, if she becomes an employee. In this case, her employer will also withhold Mass taxes.

      • David says:

        So, she would need to file a non resident in NJ, and then we could deduct the taxes paid to NJ on her Mass return? (We file married, jointly)

  372. Mahesh says:

    Hey, I was hoping you could hel