State income tax advice needed

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Go to your HR person and tell them you are not going to pay taxes to a state that you don't live or work in. The payroll girl doesn't want to file for another state, tell her too bad and to do her job.
 
bloody crazy. we only have federal income tax here. I think the company you work for pays payroll tax to the state?
 
Originally Posted By: crinkles
bloody crazy. we only have federal income tax here. I think the company you work for pays payroll tax to the state?


In most situations, income tax to both Federal and State.
Social security taxes to federal
Some cities have earnings taxes, so they are paid directly, too.

In my area, we have to consider all of them, since my wife works in Kansas City, MO, where there is a 1% earnings tax and her salary is taxed by Missouri because that is where she works.

In QuattroPete's situation, he will be paying 6% of all wages earned in Georgia to the state of Georgia. He files a Georgia state tax return to ensure he pays the right amount. His witholding may have overpaid, so that is why he may get some taxes back or owe some.

He should get credit for some or all of that amount paid to Georgia from Illinois (generally as a credit) and is taxed on all other income derived in Illinois as part of the Illinois tax return.

Any craftsman who works in multiple states has to file multiiple returns to each state, so that he pays proper income taxes where the wages were earned. Many athletes must file multiple tax returns for not only the states, but also cities where they have earnings taxes (Philadelphia, Kansas City, New York City, Washington, DC, etc), further complicating their tax situation. The hasic rule is that wages get taxed by the state (and possibly locality) where they are earned. There are some short term exceptions (but not for athletes or entertainers), but once the income tax deductions are paid to the states involved, only by filing a tax return for that state can you insure you paid the correct amount to that state.

If this is news to anyone, then welcome to the world that the US Military has to deal with, particularly with more working spouses. The Soldiers and Sailors Relief act has several provisions to prevent military wages from being taxed by more than one state and who has claim on the income tax witholding, but working apouses in multiple state locations can severely complicate a soldier's tax situation.
 
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This is the Georgia instruction book for 07.

I see it is like when I worked summers in ME, winters in NY, and went to school there, with a legal residence in MA. You divide your total income by the income earned in GA, and multiply that percentage by your total income, and wind up about where you started.
wink.gif


PS you're very unlikely to convince your employer to skip the withholding tables so they'll take soem from your check every week.
 
Look up the term "legal resident" in the taxed state. You might be able reclaim if you can show that your not a permanent, legal resident. Read the rules. I know here in Oklahoma, if you make anymoney in this state, you pay state taxes period. A lot of folks in the south part of OK were working in Oklahoma but living in Texas, where there is no state income tax, and not paying Oklahoma. They came after them with attitude.
 
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