Question

Live in CA, work in AZ.

Forum|Forum|6 years ago
June 8, 2019
1 reply
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I live in CA, but the hospital I work for is in AZ so I am classified as an AZ employee that works remote. Do I have to pay both AZ and CA income taxes. My employer says taxes only come out of the state you work in, not the state you live in.

Critter

Employee

If you worked in one state and lived in another, you will need to file a Non-resident return for the state where you worked and a Resident return for the state where you live. Some states, e.g. Florida, Nevada, Texas, Washington, do not have a state tax, in which case you will only file a return for the state that has a tax.

Don't worry - you'll only pay taxes on your state earnings to one state. Your Resident state must offer you a credit for the taxes you pay to other states.

Remember to let TurboTax know you worked in other states - edit "My Info" in your Federal online return - and to complete your Non-resident return before beginning your Resident return, in order to properly calculate the credit your home state owes you.