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How do state income taxes work when working in MI and living in TN?

July 12, 2010 By: admin Category: General

I recently moved from Michigan to Tennessee, and am continuing to work remotely for the same company. I understand that under normal circumstances, the two states would do some sort of weird mathematical equation behind the scenes to figure who gets how much tax on my income. How does this work in Tennessee, which has no state income tax on wages? Have I chosen poorly by moving to a state where sales tax is higher to help compensate for the lack of income tax, or will I get some sort of credit next year?

How do state income taxes work when working in MI and living in TN?

July 12, 2010 By: admin Category: General

I recently moved from Michigan to Tennessee, and am continuing to work remotely for the same company. I understand that under normal circumstances, the two states would do some sort of weird mathematical equation behind the scenes to figure who gets how much tax on my income. How does this work in Tennessee, which has no state income tax on wages? Have I chosen poorly by moving to a state where sales tax is higher to help compensate for the lack of income tax, or will I get some sort of credit next year?

Is Rental Income considered in the calculation of the business income limitation for Section 179 expense?

July 12, 2010 By: admin Category: General

Under what conditions would rental income be considered an active trade or business income for determining the business income limitation for section 179 expense? I cannot seem to find any concrete evidence either way on this.

How mucy should I put aside to pay income tax in Illinois?

July 12, 2010 By: admin Category: General

Hi, I am a Illinois resident and currently doing an internship in Florida.
I will be here only for 13 weeks and my expected income from this internship is $9880. I also have other sources of income from Illinois, so my expected total income for this year will be around 45~50K.
I heard that when I file an income tax report in Illinois, I will have to pay state income tax to Illinois for the Florida income portion, since Florida does not collect income tax.

Out of the income of $9880, how much should I put aside?

Thank you in advance for your answers.