Working in Another state, do you pay double state tax?

**MuffinMan** · 24th November 09, 04:30 PM

As some of you know I was out of work for several months and found a great paying job in Ca. Now I know AZ will always take its share, I was wondering has anybody else done this and how did you handle the double state income tax?

MM

**MacMillan of Rathdown** · 24th November 09, 05:09 PM

You need to check with an accountant.

**MuffinMan** · 24th November 09, 05:33 PM

A accountant was first on my list, but being the holidays with children and no real free cash, I hoped to see if anyone could point me where to go, so I could do as much as I can by myself. I of course will be hiring one for tax season, not a total knunklehead.

MM

**Smayniac** · 24th November 09, 05:37 PM

Not an accountant, but a California resident. I seem to recall seeing a section on my state return each year about OOS taxes. I'm sure every state has it's own rules and each combination of states will treat this issue differently. Good luck.
Bob

**Livingston** · 24th November 09, 06:18 PM

Last time I moved like that, 17 years ago, I basically paid in KS for what I earned there and in CO for what I earned here. I think most states work it that way. It is best to use an accountant or have a VERY good knowledge of tax laws.

**dfmacliam** · 24th November 09, 06:23 PM

I await to see what the responses are... I will be in Illinois for a couple months for work... though I reside in Texas, as well as my company, I work for, is in Texas..

**MuffinMan** · 24th November 09, 06:45 PM

When I was in the army, I served overseas for several years not knowing that the Grand State of Arizona would claim its share of the foriegn money I earned. I came home to Tucson 7 years later and was charged for those missing taxes with interest it near broke me. I will try to contact HR in Florida and see if they can charge me AZ tax not CA.

MM

**Beertigger** · 24th November 09, 06:48 PM

You should've claimed residence in a state w/ no income tax while you were in the service.

**Coinneach** · 24th November 09, 06:53 PM

I've done work in CA, but I've strived to make my home state in GA. Now I'm living in GA while still doing work for a company in CA. You will want to have an accountant to make sure, but from what my CA CPA tells me, there are many states that have a reciprocal agreement when it comes to state taxes.

I own my own company and am the sole employee. I do my Payroll through Intuit Payroll Services (formerly Paycycle). They have a multistate option that calculates your pay depending on where you earn it. Depending on your situation that might be something you look into.

Again, a knowledgeable CPA is the best way to go.

**MuffinMan** · 24th November 09, 07:37 PM

I wish the DI's were alittle more forth coming when they said most people claim Florida or Texas, but didn't say why we should change our place of residence.

MM