The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Wages in more than 1 State||Date: 1/29/2013 6:25 PM|
|Author: TMFPMarti||Number: 117586 of 121795|
Thinking this might be good news since taxes are fairly high in New York and anything that lowers my state wage base would be good.
Nice try, but it doesn't work that way. Assuming you live in NY, you are a resident of NY, which taxes all your income wherever earned. You are a nonresident of all the other states involved. Unless NY has a reciprocity agreement with a "foreign" state you'll pay that state based on its nonresident rules. This may or may not involve actually paying anything. It all depends on the state. NY probably gives you a credit for all or a portion of what you pay another state for income NY is also taxing. You do your returns in this order:
2. Nonresident state(s)
3. Resident state
Try to look on the bright side. It's possible to be considered a resident of two states at the same time.
Rule Your Retirement Home Fool
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|