Hate paying taxes? How to make sure you don't pay state taxes twice
USA TODAY
Hate paying taxes? If you live and work in different places, you could potentially be at risk of paying twice. What to know to avoid that.
Hate paying taxes? What if you have to pay twice?
Usually, rules prevent Americans from doing that, but occasionally, it can still happen. The potential for double taxation typically occurs when people live and work in different places. For example, if you choose, but aren't required, to work in a different state from your employer.
Even if you escape double taxation, sorting through the rules can be complicated and require extra tax filings. Every state has different rules, but states generally require you to pay taxes and file a return if you’re a resident or a nonresident earning income in the state. That is unless the state has a reciprocity agreement with your home state or doesn’t levy an income tax. You may also be required to file a tax return in your employer's state.
State taxes can be complicated, so before clinging to the work-from-anywhere lifestyle, understand what may be in store for you come tax season.
States that don’t have an income tax likely won’t require you to file a state income tax return. They are:
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