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| *Ostroff, Fair and Company>>>United States Taxes |
If you live in one state and work in another, do you have to pay taxes to both states? |
If you live in one state and work in another, do you have to pay taxes to both states? This all depends on what states you are talking about. Some states (New Jersey and PA for example) have reciprical agreements which means you would either have the taxes deducted for the state you live in, if the employer has a location in that state, or you can file as exempt from the state you work in and pay the taxes to the state you live in quarterly on your own. Otherwise you will have taxes deducted in the state you are working in and are responsible for the taxes for the state you live in. Most times you will have to file a non-resident tax return for your work-in state and a return for your live-in state. You should get MOST of you taxes back from the work-in state, and use that to pay your live-in state. New York is the one state I can think of that insists on collecting taxes for every penny earned in their state. Source(s): 20 yrs payroll experience no No. Yes. They proably took out tax for the state you worked in and not the one you lived in. You'll need to do a state return for both states. The state you lived in is going to want their money also. Keep in mind in some states you don't pay state tax like Florida. :) Usually, adjacent states have reciprocity agreements so that the taxes you pay in one are deducted from what you'd owe in the other. |
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