There's Something So Wrong With This Picture

[Elgin526]

Re: There's Something So Wrong With This Picture

Another thing to consider is how many states many professional athletes/actors have to file taxes for. Since I am a huge baseball fan, I'll use baseball as an example. If a baseball team plays 3 games against the Boston Red Sox, then the ballplayers have to file a MA state return for 3/162 of their salary. Ditto with every other state and country (when they play Toronto for example) that they play a game in.

I think a reason that the teams in Texas and Florida are attractive to players are because there are no state income taxes.

I beleive you pay income taxes to the state you reside in, it has nothing to do with the state you earn the income in. At least that's what it's like in IL. If you live in IN but work in IL, you pay your taxes to IN and not IL. If you live in IL and work in IN, then you pay IL.

[Joan.of.the.Arch]

Re: There's Something So Wrong With This Picture

Elgin526, if you are in another state than where you live, you still have to obey that state's laws. If that state's law says that you must pay income tax on any money earned while in their state, then, legally, you must. I live on the border of MO and IL. Many Illinoisians work in my MO city. We have a flat 1% income tax. If you earn it elsewhere but live here you pay it. If you earn it here, but live elsewhere, you still pay it--it is a payroll deduction, so you cannot get out of it.

[tinapbeana]

Re: There's Something So Wrong With This Picture

most states require income tax be paid in the state where the income is earned. for instance, i lived in GA and worked in GA for half of 1 year, lived and worked in SC the other half. i had to file income taxes for both states because i had income from both states.

since most professional athletes have a contract that is drawn and signed under the laws of one state at a per annum rate (like a salary) as opposed to being paid on a per game basis (like a 1099 contractor), my best guess is they would file income tax for the state where the contract is drawn and signed. unless, of course, they live in a different state which says all income for any state must also be declared on your home state return.

either way, it's a problem that i will never likely have!

[tabbycat31]

Re: There's Something So Wrong With This Picture

I work in a tax office, and I know that we have several clients that have to file multiple state returns because they live in one and work in another. I'm near the NY/CT border, and we have people who live in one state, work in the other, and must file in both. However any taxes paid to one state are a direct credit on returns for the other state(s)

[poundwise]

Re: There's Something So Wrong With This Picture

I beleive you pay income taxes to the state you reside in, it has nothing to do with the state you earn the income in.

This is incorrect.

[vsjhoc]

Re: There's Something So Wrong With This Picture

This is incorrect.

Who's got what backwards? I've always paid taxes to the state where I live, not the state where I work. I can't vote in the state where I work if I don't live there, so why would I pay taxes there?

[tinapbeana]

Re: There's Something So Wrong With This Picture

Who's got what backwards? I've always paid taxes to the state where I live, not the state where I work. I can't vote in the state where I work if I don't live there, so why would I pay taxes there?

income taxes are paid typically paid in the state in which the income is earned, regardless of where you live (some states of course may vary). it's taken directly out of your paycheck.

so, in my case, say i live in SC but work in GA. income taxes from my GA paycheck are taken out and given to the GA government. i am therefore paying GA taxes even though i don't live in GA. perhaps i have overpaid my GA taxes: only way to get that adjusted is to file a GA return even though i don't live in GA. that's why it's called an 'income tax' return not a 'residence tax' return.

now, since i live in SC, i'm required to file a SC tax return even though my income came from a different state. in this case, SC will take into consideration that i have already paid GA state income taxes and will make an according adjustment in my paperwork. but, if the SC income tax rate for my salary is higher than the GA rate, i will still owe the difference.

again, your state/s may vary.

[vsjhoc]

Re: There's Something So Wrong With This Picture

income taxes are paid typically paid in the state in which the income is earned, regardless of where you live (some states of course may vary). it's taken directly out of your paycheck.

so, in my case, say i live in SC but work in GA. income taxes from my GA paycheck are taken out and given to the GA government. i am therefore paying GA taxes even though i don't live in GA. perhaps i have overpaid my GA taxes: only way to get that adjusted is to file a GA return even though i don't live in GA. that's why it's called an 'income tax' return not a 'residence tax' return.

now, since i live in SC, i'm required to file a SC tax return even though my income came from a different state. in this case, SC will take into consideration that i have already paid GA state income taxes and will make an according adjustment in my paperwork. but, if the SC income tax rate for my salary is higher than the GA rate, i will still owe the difference.

again, your state/s may vary.

It does look like it indeed varies by state.

If you live in DC, Penn or VA but live in MD for at least 183 days during the year, you have to file in MD. If you live in W. Va, you don't have to pay MD tax no matter how long you are in MD. Aren't you all just fascinated to learn all this?

[poundwise]

Re: There's Something So Wrong With This Picture

Who's got what backwards? I've always paid taxes to the state where I live, not the state where I work. I can't vote in the state where I work if I don't live there, so why would I pay taxes there?

No need to be rude. Especially when you are not correct in your assumptions. Where you live and vote has nothing to do with where you earn income and where you pay taxes. There are some exceptions but, generally, you are required to pay state income tax where you earn income.


The previous statement that I responded to was:
"I beleive (sic) you pay income taxes to the state you reside in, it has nothing to do with the state you earn the income in."

My response was, "This is incorrect." And that is accurate.


"State Income Tax Returns

How do I handle taxes when I have worked in several different states, or moved?

Ordinarily, you will have to file a state income tax return in each state in which you earn income to get a state tax refund. There are exceptions: some states will let you off the hook if you only have a small amount of income, if you're in the military, and a few states don't have an income tax at all. Figuring out the state filing requirements can be complicated if you earn income in more than one state."

-- from TurboTax Tax Tips

(and about a thousand other tax sites)

[vsjhoc]

Re: There's Something So Wrong With This Picture

No need to be rude. Especially when you are not correct in your assumptions.

Sorry, my intention was not to be rude. Your response was contrary to my direct experience. I don't think I was incorrect but I'm not going to argue. Life is too short.

[poundwise]

Re: There's Something So Wrong With This Picture

Sorry, my intention was not to be rude. Your response was contrary to my direct experience. I don't think I was incorrect but I'm not going to argue. Life is too short.

Of course, one problem with online forums is that sometimes things can be taken the wrong way. I try to be careful with this myself and certainly accept your word when you say it was not meant to be rude. No hard feelings.

[vsjhoc]

Re: There's Something So Wrong With This Picture

Of course, one problem with online forums is that sometimes things can be taken the wrong way. I try to be careful with this myself and certainly accept your word when you say it was not meant to be rude. No hard feelings.

Awwwwwww, I still love you too ...

[Elgin526]

Re: There's Something So Wrong With This Picture

An Illinois resident taxpayer who worked in Iowa, Kentucky, Michigan, or Wisconsin, must file Form IL-1040 and include as Illinois income any compensation you received from an employer in these states. Compensation paid to Illinois residents working in these states is taxed by Illinois. Based on reciprocal agreements between Illinois and these states, these states do not tax the compensation of Illinois residents.

This is what I was basing my post on. So I was half right! I guess it depends on what state you live in and if they have an agreement with the state you work in.

[cicy33]

Re: There's Something So Wrong With This Picture

Back to the original point, here is what gets me. We are so worried about other countries (which by the way is where our jobs are going) and yet we have no issue with children in this country having no health care, enough food, shelter. I can't do much but I do what I can. I do not have any problems with other countries but USA is MY country and that is the one I am most concerned about at this time. So, my point is, what is wrong with the picture here, children are starving and living on the street and some (not all) of our celebrities are more worried about children in other countries. While I dont' feel that we should assume that celebs should do something just because they are rich, I have to laugh when I hear a music star says, Oh I will give a free concert. Honey, if you would just donate the cost of doing a free concert I would be so much more impressed.

[BCHGRL]

Re: There's Something So Wrong With This Picture

I know what I would do if I were a celebrity, but thankfully, I am not one. I wouldn't spend $7000 on underwear like Jessica Simpson. You no longer have to have talent to be a celebrity and get multi-million dollar contracts. Paris Hilton is a prime example; other than being a spoiled brat, what is her talent?

What really bothers me is when celebrities try to use their influence to promote their own beliefs. They are so removed from reality, but yet they think that they are experts when they most don't even a have formal education (i.e. Tom Cruise). Give me a break. And the whining. Have you seen the recent letter issued by Lindsey Lohan. From what I understood through her terrible grammar, she is going to take a stand for herself against all the negative publicity. Puhleez. . . . if you are that worried about tabloids "ruining" your life then join the services and deploy. No one in the media will care about you then.