YOUR TAXES; State Laws On Where You Live And Earn

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Out-of-State Work. If you live in one state and work in another, you have to pay taxes to both governments. States with no income tax, such as Florida, are exceptions. You file a non-resident tax return with the state where you work to report whatever income you earn there. When you file in your home state, you report all your income.

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After state and federal taxes, most jackpots are much less than advertised.. By Stephen Fishman, J.D., University of Southern California Law School. income- they are taxed as ordinary income, just like the income you earn from a job.. to pay on your winnings depends on your total income and the state where you live.

In 2018 for example, the flat state income tax rates ranged from 3.07 percent in Pennsylvania to 5.99 percent in North Carolina. This means that if you earn $100,000 in Pennsylvania, you only pay $3,070 in state income tax. And if you earn $1 million, you still only pay 3.07 percent or $30,700.

If you’ve earned money in another state, it’s likely that you’ll have to file a nonresident state tax return there because this tax return is due to any state where you’ve worked but don’t have residency. You must file such a return in addition to a tax return with your home state, but this doesn’t mean that you’ll end up paying taxes on that income twice.

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How to File Taxes if You Worked in 2 Different States. Filing taxes can be complicated, especially when you work in two different states. This circumstance can affect the way you file your taxes. While your federal tax return won’t be.