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Taxes and working out of state

1.3K views 5 replies 6 participants last post by  just the cowboy  
#1 ·
Does anyone know the tax situation when you are a resident of one state and work in another? Do you pay taxes to both states or just the state you claim as your residence?

I know the federal taxes would stay the same but I am curious if anybody has dealt with this situation.
 
#2 ·
The correct thing to do is to file state taxes in all the states you work in claiming only the income from the work in that state (at least that is what I had to do in the past).

If you are not pulling permits, there is a good chance no one would catch you if you forget to file in that state, :whistling2:
 
#3 ·
Unless the two states have an agreement in place, you have to pay both states. Your job will automatically pay your state tax for the state they reside, it is up to you to pay the tax for the state you reside. You will NOT get away with it, when you file no taxes you will eventually be flagged for an audit by your home state and when they see income claimed on federal tax you will be hit for ALL past due tax + penalty.
 
#5 ·
each tax situation is different. if you're an employee who receives a W2.. you will probably have withholding for your home state and any states you work in. (if your company and you are from the same). in my experience you will probably receive a nominal refund which might not off set the fee to file. a wash but that state will like that you don't..
 
#6 ·
depends

In my area it all depends who has the higher tax rate, if the state you work in has a higher rate you only pay that state, if it is lower you pay both the the state you work in then the differance to the state you live in. You have to file in both no matter what. NY vs PA.