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Fellow Fools, I posted the following on the Ask a Foolish question board and received advice to try here.

If you reside in a no income tax state and work in another, do you have to pay state income tax? I'm getting ready to retire (looking at Florida, a no income tax state) and my company (in Virginia) wants me to stay on to consult. I can consult from another location. Just exploring the possibilities of being able to receive income from a state where income is taxed and maybe not being liable for the tax if I live elsewhere.

thanks,
Ken
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kcesp: "Fellow Fools, I posted the following on the Ask a Foolish question board and received advice to try here.

If you reside in a no income tax state and work in another, do you have to pay state income tax?'


Probably yes. The state in which you work will likely expect income tax on the income earned in state (subject to tax treaties).

The resident pros will elaborate.

If you are consulting, will you be working in Virgina (on-site consulting) or will you be working from Florida? i believe that it may make a difference?

Regards, JAFO
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JAFO has it right on all counts. You always pay tax to the state where you work (except if that state has a reciprocal agreement with your resident state). Living in a "no income tax" state will have no effect.

Ira
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