How do the state taxes work for those of you who either work for a company outside of your home state or are based outside of your state?

 

You pay taxes in the state and town where you live. Your employer should have enough on the ball to withhold the correct amount for the correct state.

Local taxes are another matter, and you may have to pay them directly. Some towns/cities may also try to make you pay based on employment rather than residence.

I am not a tax professional. That said, it appears to me that people get in trouble in this area when they try to get creative. Trying to use a post office box in a low cost state as their "residence", for example. Be real and be consistent in what you designate as your residence, IMO.

 

[QUOTE=742Dash;1528040]You pay taxes in the state and town where you live. Your employer should have enough on the ball to withhold the correct amount for the correct state.

Local taxes are another matter, and you may have to pay them directly. Some towns/cities may also try to make you pay based on employment rather than residence.

I am not a tax professional. That said, it appears to me that people get in trouble in this area when they try to get creative. Trying to use a post office box in a low cost state as their "residence", for example. Be real and be consistent in what you designate as your residence, IMO.

742Dash is spot on... The employer gives the information to the payroll service. So all the Federal/State/Local taxes will be calculated correctly depending on the State you live in.. Bottom line your employer is responsible for transmitting the correct information for their employees to the payroll service.

 

Except in California. Pilots who are CA based are well advised to bid trips that operate outside the state borders.

 

The reason that I ask is because I own property in both VA and Ohio. If I am on the road and my wife and I are splitting time between the two states then I would rather use OH for taxes. They don't tax the first $36K of my military retirement. So once I no longer have income derived in the communist state of Va I plan to change over. This is why I was asking.

 

Pay taxes where you vote, have the cars registered and drivers license.