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February 25, 2024
Question

Why am i being charged taxes for a state i dont live in but i work in

  • February 25, 2024
  • 2 replies
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2 replies

Employee
February 25, 2024

Which states?  Which state do you live in?  Which state do you work in?  Did you live in the state the whole year in 2023?   Did you work in the other state for the whole year in 2023?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
rjs
Employee
February 25, 2024

In general income is subject to tax by the state where you earned the income. All of your income is subject to tax by the state that you live in, no matter where the income is from. If the state that you live in does not have personal income tax, you still have to pay tax to the state that you work in on any income that you earn in that state.


Generally, if income is subject to tax by both states, you will get a credit on your tax return for one of the states for part or all of the tax that you pay to the other state. Usually the state that you live in gives you a credit for part or all of the tax that you pay to the state that you work in. There are a few states that do it the other way around. The state that you work in gives you a credit for part or all of the tax that you pay to the state that you live in.


Some states have reciprocal agreements for income on a W-2. If there is a reciprocal agreement between the states your W-2 income is taxed only by the state that you live in.


We can give you a more specific answer if you tell us what state you live in and what state you work in.