Pay taxes in this state or that state?

[DHayden]

If you lived in say Nevada where there is no state income tax, and worked in Arizona where there is state income tax, would you pay tax where you live or where you work?



I know this came up to me quite a while back concerning someone who lived in Washington and worked in Oregon but I don't remember what the result was.

 

[MMeier]

Unless things have changed in the last 10 or so years, you pay where you work AND live. I drove a rig for a place out of Detroit back then and had to file non resident status and pay Michigan income tax even though my paychecks were sent here to Nevada. There were some loopholes but they were not worth the time and effort to save a few $$$$.

 

[TPCDrafting]

Working for myself in Wy. , most of my clients are in CO and the projects are built there, but since all of my work is actually done here in WY, I don't pay CO income tax. On the flip side, a friend lives in CO, drives to WY for work everyday and still pays CO income taxes because he lives there. There are no state income taxes in WY, but they get some anyway, they call it a 'fee' from business owners.

 

[RustyJC]

If you lived in say Nevada where there is no state income tax, and worked in Arizona where there is state income tax, would you pay tax where you live or where you work?

Generally speaking, you pay income tax where the income is earned. At least it was that way during the 22 years we lived in Ohio (which has a state income tax). If you earned the money in Ohio, they demanded their cut!



Rusty

 

[CarlJensen]

I traveled for forty years earning income in a lot of different states and countries. If you want to stay out of trouble you must pay all applicable taxes on income earned in state. At one time I was filing federal and five states!