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mckeecpa, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 21
Experience:  Over 10 years of tax practice
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Do you pay state taxes for the state you live in or work in or both

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Submitted: 8 years ago.
Category: Tax
Expert:  mckeecpa replied 8 years ago.
Some states don't have state tax. Can you tell me which state you live in, which state you work in?
Customer: replied 8 years ago.
Reply to mckeecpa's Post: Live in New Jersey but work in Texas
Expert:  mckeecpa replied 8 years ago.

Any person who became a resident of New Jersey during the year and whose income from all sources for the entire year is greater than $20,000 ($10,000 if filing status is single or married/CU partner, filing separate return) must file a New Jersey resident income tax return (Form NJ-1040) and report that portion of their income received while a resident of New Jersey. Taxpayers who lives in NY but works in other states maybe eligible to claim a credit on NJ tax return for taxes paid to the other states.

Texas has no income taxes for individuals.

Conclusion:You will need to report all your income( including Texas income) on NJ tax return. No tax in Texas.

Customer: replied 8 years ago.
Reply to mckeecpa's Post: But, what if they also worked in a state that had state income taxes do you need to withhold state taxes for both states?
Expert:  mckeecpa replied 8 years ago.

No, you don't have to. The procedure can be different state by state but there should be a way to elect out. Which state is your employer located?

Customer: replied 8 years ago.
Reply to mckeecpa's Post: The employer is in Texas but, they have employees working and living in twenty different states. Most of the time they live in one state and work in another. And I am having a hard time keeping up with what needs to be filed where at this point.
Expert:  mckeecpa replied 8 years ago.

If the paycheck is from Texas, Texas has a rule of withholding otherstates' taxes. They will withhold your New Jersey tax on your paycheck.

Yes, you do have to keep track of which states you have to pay taxes.

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