Questions tagged [state-income-tax]

For questions relating to state income taxes. For most questions, a state-specific tag should also be included.

419 questions
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What dissuades people from lying about where they live in order to reduce state income taxes?

Lets say you work in Chicago and live in Chicago but put your home address as somewhere in Indiana. Then every week you collect the mail that is being sent to you in Indiana. Wouldn't you save a lot of money assuming the taxes are lower? What…
34
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11 answers

I hate the high taxes in NYC. Should I incorporate in or move to another state?

I'm in NYC currently and make a good living doing remote web development work and I get a 1099 at end of year. My taxes take about 35% of my paycheck. I was thinking about incorporating in another state or moving to reduce this amount. I've read…
23
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6 answers

Is the Standard Deduction better than Itemized when both are the same amount?

For 2018 the standard deduction is $12,000 for individuals, $24,000 per household. If someone's itemized deductions equals the standard deduction, or is very close, which one is better to take? For example, my understanding is if you itemize, then…
22
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8 answers

Why did the federal government ever allow taxpayers to deduct their state taxes from their federal taxes?

At the end of 2017, President Trump signed into law the Tax Cuts and Jobs Act with among other things eliminated the federal tax deduction for state taxes paid. Essentially, the federal government allowed taxpayers to remove whatever they already…
CodyBugstein
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I e-filed my taxes ONE SECOND after the deadline - am I in trouble?

I am a US resident and last night I e-filed my 2019 federal income tax return with TurboTax and I owed money. (I know you should NEVER wait for the last day but it's been a couple of crazy weeks so I did not manage to do this before despite its…
Gabe
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12
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1 answer

Get back unwarranted California state tax

In 2023, I worked on site for a company in California. At the end of 2023, I moved to Texas to work remotely for the same company, so for the whole year of 2024, I resided and worked in Texas. The problem is that my company forgot to change my…
11
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3 answers

Can I submit my U.S. state income taxes in multiple envelopes?

I have a 12 page return and I have a number or pre-stamped envelopes. I read that I should only put 3-4 pages in each envelope. Can I submit them in multiple envelopes?
10
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3 answers

Will it be financially advantageous to rent out my condo on AirBnb?

I'm considering renting out my furnished 2BR/2BA condo as a daily rental. It is close to hospitals and is in Little Rock, Arkansas. I don't expect to make enough money to pay all the expenses associated with the condo, but since I am only there…
8
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2 answers

State returns for married couple living/working in different states (CA & IL)

For the tax year 2016, me and my wife were residents of and earning income in different states (CA and IL). We filed a joint federal return to have larger deductions, but I am not sure if we should file separate or joint state returns. Filing…
Nicholas
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8
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2 answers

I live in Maryland and work in Virginia. Do I need to file multiple state tax returns?

I live in Maryland and commute everyday to Virginia for my job. I do not have any rental property in Virginia. Do I need to file multiple state taxes?
hmajumdar
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8
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Do Americans working overseas pay state taxes?

I've been reading some questions about Americans paying taxes to the US while living and working overseas. I've also been looking around at some linked websites, but I haven't seen anything regarding state/local taxes. If you're an American working…
duzzy
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8
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4 answers

Which state do you pay taxes in if you work in a different state than your employer? Specifically, if you live DC and work for a company in New York?

I've been doing some research on paying state taxes while working remotely and I will be consulting a tax advisor or CPA in regards to the matter; however, I love the StackExchange and I wanted to see what kind of insight the community could…
8
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2 answers

Is freelance income earned by a U.S. citizen while living abroad subject to state income tax?

My wife is a freelance web developer, formerly residing and paying taxes in NY. She left her job in December 2011. We moved to Italy (where I am employed by the U.S. government) in January 2012. Since arriving in Italy, she has accepted freelance…
8
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2 answers

Is it legal to move to a different US state before moving out of the country to avoid paying state income tax abroad?

Today I've learned that Americans have to pay state income tax based on their last residency address, even if they relocate overseas. So let's say you know you will be moving from the US to another country next month. Would it be legal to rent a…
JonathanReez
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7
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1 answer

Can I choose which state to pay income tax to when I am traveling and have no permanent residence in the US?

I am leaving for a year-long trip around the world. I will have an income while traveling. Is it possible for me to choose which state will tax me as I will not have a permanent residence in any state? My current state has a flat income tax rate of…
Audus
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