YOUR TAXES; State Laws On Where You Live And Earn

Question: If I work in New York City, but live in New Jersey, do I pay taxes in both places? – Held Up in hackensack. dear held Up: Yes, you must file returns and pay taxes in both states.New York will tax the salary you earn in the city, but New Jersey will credit most of those taxes on your home-state return.

In addition to your Federal tax filing obligations, some states have. laws and regulations), requirements differ based on where you lived before you. on your state tax return and pay taxes to the state, even if you didn't live in.

Most states require that you pay taxes on income you earn while living there, as well as on income earned from sources within that state. So if you live in Maine and cross over the state line into New Hampshire to work, you’ll owe taxes to New Hampshire even though you don’t live there.

Most savings accounts – and similar places to park your cash, such as money market funds – require that you pay taxes on the interest that you earn. want to be exempt from state (and even local.

If you earn income in a state other than the state where you live, you may have to pay income taxes both to the state where you earned the income and to your home state. You must pay income taxes on the total amount of income you earn to the state where you reside if that state imposes income tax.

Out-of-State Work. If you live in one state and work in another, you have to pay taxes to both governments. States with no income tax, such as Florida, are exceptions. You file a non-resident tax return with the state where you work to report whatever income you earn there. When you file in your home state, you report all your income.

Tax laws can vary widely depending on where you live.. Depending on which state you call home, the types of taxes you’re subject to – and just how much they amount to – are going to be.

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