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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?

Are state income taxes based on the address of the employer or the employee?

July 12, 2010 By: admin Category: General

I worked in New York over the summer, but I'm a California resident, and I used my California address for all the paperwork, so that's the address listed on my W-2 (and also where all my paychecks were sent). I have to file tax returns for both states either way, but I'm not sure whether to list my summer pay as NY or CA income. Is what state my income was earned in determined by my employer's address, or by my address as listed on my W-2? If it's considered NY income, then do I file my CA tax return as a part-year resident, or will I have to CA tax on it as well?

Are state income taxes based on the address of the employer or the employee?

July 12, 2010 By: admin Category: General

I worked in New York over the summer, but I'm a California resident, and I used my California address for all the paperwork, so that's the address listed on my W-2 (and also where all my paychecks were sent). I have to file tax returns for both states either way, but I'm not sure whether to list my summer pay as NY or CA income. Is what state my income was earned in determined by my employer's address, or by my address as listed on my W-2? If it's considered NY income, then do I file my CA tax return as a part-year resident, or will I have to CA tax on it as well?