Originally Posted by
sailingfun
Airline pilots seem to have a hard time grasping this because we have a federal exemption on how we pay state tax. For 99% of the population they pay state income tax in the state the income is earned in. If someone works in Minnesota but lives in Wisconsin they pay state income taxes in Minnesota. Pilots pay state income tax as transportation workers based on residence unless they do more than 50% of their work in one state in which case they pay in that state.
Your example about people moving does not change their requirement to pay income taxes to the state of Minnesota if they continue to work there.
Thank you for the correction, though we are both partially incorrect.
“I am a resident of Wisconsin. Do I have to include the income I earned in another state on my Wisconsin tax return?
Yes. All income received by a Wisconsin resident is reportable to Wisconsin regardless of where it is earned. Wisconsin allows a credit for the net income tax you pay to other states on income that is taxed by both Wisconsin and the other state. In order for an individual, estate, or trust to claim this credit, you must:
- File an income tax return with the other state to determine the amount of net tax paid to that state
- File Wisconsin Form 1 or Form 2
- Attach a copy of the other state's income tax return
- Attach Wisconsin Schedule OS, Credit for Net Tax Paid to Another State
- Attach your Form W-2 (wage statement) or other withholding statement from the other state”
https://www.revenue.wi.gov/Pages/FAQS/pcs-work.aspx