It isn’t always easy preparing your taxes when you’ve worked in more than one state. We can help you get it right!
I get many calls from people who prepared their own returns with two or more states and they all say something pretty similar, “I did the return, the federal is okay but the state just doesn’t seem right.” Then I ask, “Do you owe way more than you think you should?” “Yes, how did you know?” I do this for a living. The quick answer is to check to see if you took a “credit for taxes paid to another state”, that’s usually where the problem is.
Normally, I would have put that at the end of the blog post, but it’s such a common problem that I figured it needed to go first. Quick answer and you’re done. If you need more information, I’ll start from the beginning.
Two states can usually be handled by most of the major tax software companies with no problem. Remember the credit for taxes paid to another state and you should be good. On the other hand, three or more states can send your software into a tizzy. Even with my professional grade software, I still have to compute numbers by hand and manually input them into the program. If you’re dealing with three or more states, spend the money on a professional. It’s a good idea to ask, “Have you ever done a California return before?” (Or Ohio, or North Carolina, or whatever.) Experience helps.
Back to the two states: There are two situations where you could have two state returns. One would be you moved from one state to another, for example moving from Indianapolis to Chicago for a job. The other would be where you live in one state but work in a different state, for example living in St. Louis, Missouri but working across the river in Alton, Illinois. These two types of situations use different forms.
Moving: When you move from one state to another, you’ll be filing your two state returns as a “part-year resident”. You’ll be completing paperwork that says how long you lived in the state, what your earnings were for the state, etc. You should only be taxed on the income that you earned while you lived and work in the state. If you withheld properly, your taxes should come out normal, no big refunds, nor big balance dues. Most of the time in a case like this, you won’t be filing a “credit for taxes paid to another state” because the “part year resident” return will handle you income allocations. (Most of the time—there’s 50 states and they all have different rules, so in some cases you’ll still be doing the credit for taxes paid to another state.)
Living in one state and working in another: this situation is a little different. You will be a “resident” of the state you live in and a “non-resident” of the state you work in. The state you work in is the state your company is going to withhold taxes from. But the state you live in is going to tax your income too. This is where it’s really important to remember the credit for taxes paid to another state, because if you miss taking that credit your tax bill could be enormous. Sometimes, the tax bill is still pretty large even when you’ve done everything right. For example, here in Missouri our state income tax rate is 6%. Next door in Illinois it’s 3% (although it’s moving up to 5% this year.) If you live in Missouri and work in Illinois, you’re going to get hit with a pretty harsh state tax bill unless you had Missouri taxes withheld or paid estimated taxes.
Here’s some other tips that will help you with your multi-state return:
1. Always do the federal return first. Don’t start the state returns until the federal is done and you feel that it’s correct. If you have to go back and make changes to the federal, your state numbers will be off.
2. Non-resident income: that’s wages that you were paid in a state you didn’t live in. It also includes self-employment performed in the state.
3. Resident income: the state you live in will tax everything, in addition to your wages, it will tax your pension, interest, investment income, everything.
4. Moving expense deduction-always goes to the state that you moved to, not the state that you moved from.
This is a pretty quick and dirty summary of multi-state tax returns. If these tips don’t solve your problem, do call us and get some help. They’re not always easy to handle and we do this for a living.
I live in Florida. I work in Florida,ga,sc,nc,tn,Alabama and Mississippi. Soon to work n mass. What do I do for taxes? I’m not self employed. Company is out of Ohio., I travel a lot for work. Hotels 6 nights a week.
Hello
In January 2011, my son and I moved from Colorado to Minnesota. Then in September 2011, we moved back to Colorado. I did not work in Minnesota. I did have my son in daycare so therefore paid daycare expenses. How do I file? Can I claim the daycare expenses in Minnesota and moving expenses to and back? I did work in Colorado in January 2011 before I moved, and also from September – December 2011, when I moved back to Colorado.
Thanks for the help
Hi Doug,
You may as well just file your taxes as an Illinois resident and a Colorado non-resident. I’m pretty sure that’s how your company did your withholding–all for Illinois. And, because you were working in Illinois–well that’s the way it’s taxed. Or at least, report your move in January.
Your wife can report her move in March if the returns allow it. If you have to have the same month–you can use March as well.
The bit about the old income. You received the money in 2011 but it wasn’t reported until 2012? Is that correct? Technically, you should amend your 2011 return. But if you received a statement saying the money was received in 2012–well then I’d report that you got it early — which is true — and put that with your Colorado earnings.
Your rental in Colorado will he handled like any other rental–it goes on your Colorado return. (Or you could hire your friendly, neighborhood, internet answer lady–I do those types of returns!) 🙂
Hi Josie,
Want you need to know about is the Military Spouses Residency Relief Act. Here’s a link to the North Carolina website that explains it: http://www.dornc.com/taxes/individual/armedforces/spouses.html
You will have to file a North Carolina tax return, but you should have all of your North Carolina withholding refunded.
You’ll want to fill out a new W4 from for NC for your employer and say that you are “Exempt” from NC withholding so that you don’t have any state tax taken out in 2013.
Hi Bob,
Do you work for the same company as Scott? You’ve both got me confused. I think because when I hear the term “rotation” I think of medical personel and they do their “rotation” in the state the rotation is in. You guys might need to educate me a bit more about what you do.
The bottom line is: you pay taxes where you physically work and you pay taxes where you physically live. That said, sometimes you are sent someplace temporarily. Those situations vary. For example, I used to live and work in Massachusetts but I would go work in Oklahoma for my company. Those trips were always a week or less in time. I never paid Oklahoma state taxes.
That said, some companies have you move to a new city for a job (like a rotation.) In those cases, you often do have to pay that state’s tax. That’s going to depend pretty much on each state and city and the length of your stay. If you’re working for a well established company, they probably are doing it right. If it’s a new company, it’s easy to make mistakes.
In your case, I’m confused. You were hired for a rotation in DC, but your rotation is really in NYC? Am I understanding you correctly? Did you get transferred or something? Sorry for the confusion. But I’m guessing that you live in Maryland, you do not live in DC–that’s correct right?
Bottom line, if you are physically working in NYC–you’re right, you’ve got NYC city and state taxes to pay, plus your home state of Maryland taxes.
If you are physically working in DC–then of course, you pay DC and Maryland tax.
Hi Scott,
I want to make sure I understand correctly–you were hired into New York state, but you live and do your work in Florida? Do you mean that you were hired by a New York company, but continue to live and work from Florida? You are not physically flyiing or driving to New York to perform this work, correct?
If I’m understanding you, then no–you should not be paying New York tax. What you will do is file a New York tax return as a “non-resident” and show that none of your income was earned in New York. You’ll basically be asking for a refund of all of the New York state tax that has been withheld.
You’ll want to have your employer stop the state withholding.
Hi Jaime,
I’m guessing that you are a US citizen. As a US citizen, you are still required to file a US tax return, even though you live in Wales. But what you can do is use form 2555 – which allows you exempt $95,100 of your income from tax. That’s in US dollars.
Since you do not live or work in Missouri, you will not be required to file a Missouri tax return.
That’s not a naive question. I get that all the time and it can be really confusing.
To add on to my first comment, I did work in Colorado in January 2011 before I moved and when I came back to Colorado in September 2011, I did start working in Colorado again.
Thanks for the help
Hello
In January 2011, my son and I moved from Colorado to Minnesota. Then in September 2011, we moved back to Colorado. I did not work in Minnesota. I did have my son in daycare so therefore paid daycare expenses. How do I file? Can I claim the daycare expenses in Minnesota and moving expenses to and back?
My wife and I moved permanently to Missouri in April of this year. We both are full time students since moving to Missouri and have not worked since we left Texas. Do I need to file taxes for Missouri since we have not yet worked in Missouri? Thanks!!
I forgot to mention also government contracting as well in MD.
Good afternoon here is my concern. Im from FL and it has been always my home of record. I recently moved to MD with Military and also paying MD state taxes as well, but I still have FL has my home of record. Ive been in Maryland for four months out of the year 2012 and the other 8 months in FL. What kind of guidance can you give me?
Hi Ron,
Your son’s business is going to be tricky. As an independent contractor spending 25% of his time in NC, that implies that he’s working in NC and will have to pay NC taxes.
He’ll have to keep good records about where he is working. I’d say that when he’s working in NC, then he should pay tax on that income to NC and when he’s working from Minnesota, then that income should be taxed to Minnesota.
That said, it will be a little confusing. He’ll need to keep good records. Some of these construction guys wind up doing several states. I work with a construction manager that routinely has five or six states a year. He travels from job site to job site, lives in a mobile home and brings his wife wherever he goes.
It’s not impossible. The important thing is to make sure he keeps track of all of his expenses so that he can write them off.
Hi Ken,
It sounds like you’ve got two homes. The big issue here is–is your job in Illinois a permanent job or a temporary job? If your Illinois job is temporary–then you really are a Georgia resident. But if your Illinois job is permanent, even if you plan to move back to Georgia, you’re technically an Illinois resident.
Where this really makes a difference is in your investment income, retirement income, and things like that. Earned income is taxed where you earn it so no matter what, Illinois will tax your job income.
Now, since your home in Georgia is your main home, you can still deduct your real estate taxes and interest on your federal tax return.
I would file your tax return as a Georgia resident and an Illinois non-resident. You’d still pay your tax on your wages to Illinois, but any other income that you earn will be taxed to Georgia. You will take a credit for taxes paid to Illinois on your Georgia tax return. That’s what I’d do for 2012 anyway. You may want to rethink this for 2013 if you choose to stay in Illinois.
My wife and daughter and I lived in Colorado at the beginning of 2012. At the beginning of January, I started a new job, based in Illinois, knowing that we would be relocating once we sold our residence in Colorado. In the meantime, I commuted every week to work in Chicago or Houston (Chicago is where the job is based), flying home on weekends, and also working from home one or two days per week. My wife continued to work in Colorado for her employer. Once our residence sold, in March, we moved to Illinois, but lived in corporate housing for two months. In May, we bought a house in Illinois and got IL drivers licences. My wife still owns a house in Colorado that we rent out, and I also had some residual income from my previous job that I left in 2011, that was paid to me in 2012. I was also recently notified of taxes paid for me by my previous employer due to taxable benefits used in the last two months of 2011 (CO taxes paid).
I know we need to file part-year returns for both Colorado and Illinois. My questions are:
When are we considered Illinois residents? Upon moving into corporate housing, or upon purchasing our own residence there (Colorado has a lower income tax rate).
How do we handle the rental still owned in Colorado?
How do I handle the taxes on the benefits from my previous employer, as they were used last year, while I was still a Colorado resident, but were not reported until December, well after I had become an Illinois resident.
My husband is in the military and I am a full time employee. He is currently stationed in NC, where I live with him as well. We are both still residents of our home state, Texas. I know I do not have to file a state tax return for Texas but North Carolina does require filing. My husband’s income only has to be claimed on the federal return due to our residency remaining in Texas. I have a problem however because since I started my job in NC in Jan 2012 my employer did not file Texas as my home of residency so this entire tax year, NC has been taxing my income although it should not have been. Will I have to file a state tax return or worse! pay taxes to NC?? Or is there a way that when it comes to file our federal return that I can receive the money back from North Carolina?? Please help! as my employer has not done much to help me resolve this misunderstanding. Thank you!!
I was hired into DC for a rotational position. My permanent residence is in Maryland. I am currently rotating in NYC for the position. The company is withholding only DC taxes. I am under the belief this is improper and I am liable for NYC taxes, NY state taxes, and then Maryland income taxes. The company says I am liable for DC taxes and Maryland taxes, which to me makes no sense as no economic activity is created through DC? What is the correct? Please help? Thank you!
I was hired into NY state for a rotational position. The company is withholding NY state taxes, however I have only ever worked in the state of Florida for the position as this is where I am currently rotating. I have lived in Florida for the required years and am a resident for tax purposes. I believe the company is incorrect for withholding NY state taxes as the income is being earned in the state of Florida (no state income tax). What is the correct course of action? Who is right…is the withholding of state taxes correct?
Jen,
You will need to file a Michigan tax return as a part year resident to get the Michigan tax withheld back. The reciprocal agreements exempt nonresidents from income taxes imposed by each state on salaries, wages and other employee compensation. If a Michigan resident erroneously had income tax withheld for a reciprocal state on salaries and wages earned there, it is the Michigan resident’s responsibility to file a nonresident tax return with that state to get a refund of the tax withheld in error.
It looks like you subtract all Michigan earnings since April from your Indiana return.
Look at this link as well if you have not already: http://www.michigan.gov/taxes/0,1607,7-238-43715-154059–F,00.html
Bushra,
If you file joint federal return, normally you must file joint state tax returns.
On WV tax return, husband is resident and wife is non-resident.
West Virginia allows you to allocate income per resident and non resident and apply tax to only the income made in the state.
Hello 🙂 I work from home for a hospital in Michigan, and I lived in Michigan up until April of year and then I moved to Indiana. Michigan has continued to take taxes out and I never thought of turning in any kind of paperwork to be exempt since they have an agreement for taxes between the two states. I’m sure I will end up owing Indiana state taxes, but I obviously paid way more to Michigan than I needed to since I technically should have been exempt since April. How will that work when I file my taxes in Indiana? Thanks in advance!!
Hi! I am very naive when it comes to taxes so I have a silly question. I am a missionary in Wales, U.K. but get paid in US dollars. My missions agency is in Missouri and I get a 1099 each year. I am permanently living in the U.K. Am I still required to pay Missouri taxes even though I do not live or work there but my agency is from there?
Thanks,
Jaime
My son-in-law lives in MN and will be starting a new job as an independent contractor in January for a company based in North Carolina. He will be providing construction management services for projects primarily in NC and will be required to physically be in NC about 25% of the time. The rest of the time he will be able to do the work electronically and via phone from MN. I know that his expenses related to travel will be deductible. My question is will all of his income be deemed to be generated in NC? Or does it get prorated somehow based on where he is physically? If some of the construction projects are in a 3rd state (i.e. South Carolina), would that necessitate a 3rd state return? What determines a state’s ability to tax income…the headquarters location, the construction project location, or the location of my son-in-law when he provides the services?
Thank you!
I have an inquiry about filing my income tax return for TY2012. In January, 2012 relocated from Georgia to a new job in Illinois. I have stayed in Illinois in a rented apartment for most of the year. From time to time over the course of the year (about 4-5 times for about 4-7 days each time), I have returned to my house in Georgia. I consider my house in Georgia to be my legal domicile residence, and I would like to maintain the homestead exemption (~$15,000) that it enjoys. Since I have earned almost all of my income from my job in Illinois, and I have stayed for most of the year there, I understand that I would be considered a resident for tax purposes of Illinois. Can I I maintain my domicile legal residence in Georgia; if yes, how do I? Does this situation trigger multistate residency?
Thanks.
My husband and I both live in different states and work in different states. I live in Texas and am employed here- we do not have a state income tax. My husband works full time in WV and he has a state income tax. On my last return I had to pay towards WV state income tax based on my income as well because we file jointly- how does that make sense- why would my income which I did not produce in WV go towards state income tax. I make sig more than he does so the payment ends up being significant. Should we file separately…we have two children but they live with me. My accountant explained something like because we file married I have to contribute to state income tax in that state even though I do not live there or work there.
Hi Roger,
You will file your taxes as an Illinois resident and pay Illinois income tax. Tennessee doesn’t really have an income tax. They have a tax on investment income, but since you’re a non-resident, your investment income would be taxed by Illinois anyway so it won’t matter for you about Tennessee.
If your company won’t withhold for Illinois taxes, you might need to make estimated tax payments so that you don’t wind up owing a lot next tax season. When you file your taxes this year, you can have your preparer make some estimated payment coupons for you. Or just do it yourself if you’re filing your own taxes. It’s really just a few clicks of a button to get them done.
Hi Mark from Texas,
You do have kind of a crazy schedule, but you don’t have to file 50 different tax returns. A person like you just files taxes for his home state–okay, you’re in Texas, no home state. Still, you don’t file tax returns for all the cities you travel to.
Your situation is not like you’re spending that much time in any of the cities. You’re just making temporary visits so you’re not required to be filing multi-state tax returns.
That said, do be careful about certain cities–but I’m guessing your employer would take care of that if it was an issue. For example, professsional baseball players that play in St. Louis wind up paying the St. Louis city tax for every game they play here.
But generally, that’s not going to be your problem. (Unless you’ve got a pretty mean fastball or something like that.) In a previous life, I used to live in Boston but traveled all over the place. Same as you, I only had to file a state return for the state I lived in. When you’re only spending a few days in a city, that’s all you can be expected to to.
Hi Robert,
So why do you have a Missouri address? That wasn’t meant as a smart aleck answer, but seriously–why the Missouri address? I think it’s because you live in Missouri but you’re traveling to and working in Nebraska.
So–because of that, I say you still pay Missouri taxes. File as a Missouri resident and a NE non-resident. Claim a credit for taxes paid to Nebraska on your MO return.
Now–if you’ve really moved to NE, but still have a MO address because you just can’t sell the house, that’s a different story. Then you’d only file a NE resident return or maybe a part year return. Or maybe you’re renting the house and so you need to file a MO return for the rental income.
It kind of depends on the situation. If you tell your work friends that you’re “going home” when you travel back to Missouri–we’ll that’s your answer right there.
I am interviewing for a job in Tennessee, but intend to keep a home in Illinois and an apartments in Tennessee. I will fly back to Illinois on most weekends. My wife will be staying in Illinois most weeks. How do I handle state taxes?
This is madness. I live in Texas, but travel all around the United States. I’m pretty much in a different city every week. I am NOT self employed, but work for a major company as a consultant. I may work 2 days, or sometimes 3 or four days in a particular town, then go home for the weekend. What am I supposed to do? File 50 state tax returns for 2 days here, 3 days there? Ahhhhhhhhh!!!!!!
I have a Mo address but I work for a company out of NE and I travel a lot to NE and I live mainly in NE 90% of the time. So do I have to pay Mo taxes?
Hi Scott, I think Pennsylvania would count you as a resident.
Thanks for the info Admin Roberg.
If I am renting a house (1 year lease) with two roomates, would this be considered a permanent address in Pennsylvanian if I live in the house for over 1 year?
-Scott
Hi Jennifer,
you will file a part year Colorado state tax return for the time you lived in Colorado. Because you live and work from home, that’s were you should pay the tax.
Usually when people tell me what their friends say about tax advice, I cringe. But it sounds like you’ve got smart friends.
Hi Scott,
a couple of things. First, Pennsylvania does not base it’s tax return on the federal tax return (most states do.) So filing in Pennsylvania may be a little different for you.
The rule for being a Pennsylvania resident is either–domiciled in Pennsylvania or has a permanent abode in PA and spends a total of 183 or more days in PA.
So I guess the big issue for you is–do you have a permanent place to live in Pennsylvania? (Because at 39 weeks, I’m thinking you’ve crossed the 183 days marker.)
So here’s my other thing–companies generally don’t give housing stipends to people in permanent housing–so that might just be your answer.
I have asked others, and they tell me that I am fine and “No, just keep doing what you have been. Your business is in the state you live. You did not travel to MA or PA to earn your wages, so you can file where you are when you receive the money.” Is that true? Or should I start amending old returns and waiting for the penalties and interest? 🙁
Hi there! I have a question about my 2012 taxes. My husband, children and I have lived in Florida for 10+ years. In March of 2012, we moved to Colorado. Throughout all of 2012, I have been a stay at home mom collecting unemployment from my previous work at home position where the company was based out of PA. My husband has worked remotely from home as well, and his company is based out of MA. However, we have never filed anything other than normal (Just federal because FL does not do state taxes) in the past, and I am worried we should have been filing MA and PA state taxes all along. Now, with this year, we also have been in 2 different states, so I am a bit confused as where I should start. I would appreciate any help you can give. Thanks so much! 🙂
Hello. I am a travel Physical Therapist and my permanent address is in new york. In 2012, I have worked in the state of Pennsylvania for a total of 39 weeks. I am planning on working in Pennsylvania in 2013 for around 39-42 weeks. When I file my taxes for 2012 and 2013, does Pennsylvania become my permanent address or can i still use new york? The reason why I ask is because i use new york as my permanent address I am not taxed on my housing stipend when living in Pennsylvania.
-Scott
Hi Lisa,
I won’t answer your question. Bottom line, they should be withholding Ohio tax anyway because you do pay non-resident taxes. Illinois will give you a credit for the Ohio tax. It should mostly wash anyway.
Hi Ed,
Thank you. Okay, there’s what should happen and what really will happen (probably anyway.) What should happen is that you should pay state tax to New Jersey for the month of January–but I’m guessing that your Nevada company will just withhold tax from Nevada and you’ll just confuse New Jersey by trying to pay them for January. So–
You will file as a Nevada Resident and New York non-resident. Your wife will file as a New York resident and Nevada non-resident. It sounds crazy, but you’re certainly not the first couple to do this and you won’t be the last.
New Jersey will not be taxing your income and Nevada will not be taxing your wife’s income. The tricky part for you will be joint income that you earn–like on a joint bank or stock account. You’ll have to split that to make sense for the states.
You could probably make your wife a resident of Nevada for tax purposes (it’s not like you’re divorcing, you’re just living apart for job purposes right?) Then you’d still have to file a New Jersey non-resident return for your wife’s wages. I doubt that it would make any difference in the amount of tax you pay, but it might make the paperwork a little easier if you both claim residency in the same state.
Please disregard my question. My company is actively looking into it. Thanks!!
Hi! I live in IL and since 3/19/2012, I have been working in OH Monday thru Thursday (Friday working from home). I will likely continue this schedule until through January/February 2014.
I’ve worked for consulting firms before who try to alleviate the tax issue by “grounding” you or take a “tax break” for 4 consecutive weeks so that it shows that you did not work in the work state for 12 consecutive months straight.
My new firm is telling me that there is no obligation for them or myself to ground/tax break as this has never been an issue for them.
I’m concerned that I owe money. I need some specifics (e.g., tax law, etc.) on which law that I need to point to and need perspective from employer and employee since they’re clueless as to what the issue is.
Any assistance will help. Thanks!
Great site. I live in NJ but on Jan 1st, 2012 will begin working for a company in Nevada. I won’t move to NV until Jan 31st. All of my wages will come from NV (W2) but my wife will have $5,000 that she will earn in NJ. I will move into an apartment in NV on Jan 31st and will register my car, get a driver’s license, register to vote, change banks accounts etc. all to NV. However, we own a home in NJ and my wife is planning to reside in NJ for most 2012. Given the situation above how shall we file and will my NV income be taxed in NJ?
Hi Sharyn,
It seems to me that you live and work in Florida. You do not pay Maryland income taxes.
You employer should be paying your unemployment insurance tax to the state of Florida. (Except Florida calls it a “re-employment tax.” Here’s a link for more information: http://dor.myflorida.com/dor/taxes/reemployment.html
I moved to Florida from Maryland in January. I was working from home as an employee (not a 1099 or contractor) for a company in Maryland and they did not take any state tax out. I am now working for another company. Same situation…I am a resident of Florida but the company is in Maryland. I started to fill out the MD W2, but then they said I didn’t have to since no state tax would be coming out. Now they are trying to figure out what to do with me since something was “triggered” and they don’t know how to handle unemployment and other state issues. Should I just go 1099 or is there another way so I don’t have to pay a big tax bill quarterly or at the end of the year?
Hi Kelly,
You will pay California taxes. You will not be paying Virginia taxes. You are working for a Virginia company, but you’re not setting foot in Virginia.
If your company can’t withhold for California, you should be paying California estimated taxes.
Here’s a link to the California Department of Revenue website and their tax calculator. It’s for 2011, but it will give you a good idea. https://www.ftb.ca.gov/online/Tax_Calculator/?WT.mc_id=HP_Popular_TaxCalcTablesRates
Hi Carolyn,
Your employee will be filing a South Carolina resident return and a Maryland non-resident return. Most employers withhold taxes for the state that the employee works in. Only best, most wonderful, kind and generous payroll people even think about withholding for both states. So if I could give out gold stars or something like that on this web site–you’d get one.
So here’s what I suggest. 2012 is almost over, starting in 2013–you should be withholding for Maryland for certain. After your employee does his taxes, he’ll have a better clue as to how his South Carolina taxes compare to his Maryland to determine if he should also be withholding for South Carolina. (He’ll get a credit in SC for what he has to pay to Maryland.)
And thanks again for being so considerate of your employees.
Hi A. Yousuf,
First, you were not in the United States for over 180 days so you will be able to file as a non-resident, that would be the 1040NR. If you had income in your country before you came to the US, filing the NR return is what you want to do. If you were to file as a US resident, the US taxes your worldwide income.
Now, what about the states? For 2012, you may file as a non-resident of Massachusetts and a non-resident of NJ. You will want to check to see if you have any tax treaties for the country you are from. Most treaties don’t protect income for people on an H1 visa, but it’s always good to check. Here’s the IRS website on treaties: http://www.irs.gov/Businesses/International-Businesses/United-States-Income-Tax-Treaties—A-to-Z
It’s a good idea to get some professional help when filing your first US tax return. Our tax system is rather tricky.
I live in CA, but my job is in VA b/c I work remotely everyday. Do i pay CA taxes or VA? If I request to be exempt from VA tax withholding then how do I know how much to pay taxes to CA?
I am a payroll specialist and we are trying to figure out what tax we need to withhold from an employee. The employee has a permanent residence in SC but works in MD and stays in a hotel in VA for 4-5 days a week. (he does not want to relocate up to MD so the company pays for the hotel and flights) We are currently withholding SC taxes since it is his permanent residence state and he does not technically live anywhere else. Are we doing this correctly? Or do we need to withhold MD taxes in addition to SC?