So if you don’t happen to live in a state where there’s no income tax, you’ll have to pay tax to your home state on your income regardless of where you earned it. For example, you might live in Georgia, but you work in Florida, which doesn’t have a state income tax.
Community property laws affect how you figure your income on your federal income tax return if you are married, live in a community property state or country, and file separate returns. If you are married, your tax usually will be less if you file married filing jointly than if you file married filing separately.
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The general rule of thumb is that you need to file taxes where you earned the money. That means you need to file a nonresident state return in the state where you worked. If you have non-work income (such as interest, income from side hustling, etc.), you’ll declare that in the state where you live.
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Although certain states have varying non-resident tax laws, generally, if you live in one state and work in another remotely (so you don’t physically travel to another state for work), then you would only file and pay taxes to your resident state.
Check the state tax laws where the rental property is located. In most states, you are not required to file a return if your income falls below a certain amount. States may use only income.
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This exemption form will relieve you of the burden of paying income taxes to the state in which you work, so you only need to pay taxes to the state in which you live. There are different exemption forms to fill out depending on your state: Talk to your HR representative to obtain your correct form, or find your exemption form here.
State income tax rates receive relatively little attention compared with federal income taxes, but they can still put a large dent in your wallet.How large depends on the amount you earn, as well.
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