So I understand that for this area, you pay taxes for both places. But I'm confused about the tax system here. Is it around 20 percent of your yearly income if you work and live between these two states? Thanks!
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So I understand that for this area, you pay taxes for both places. But I'm confused about the tax system here. Is it around 20 percent of your yearly income if you work and live between these two states? Thanks!
You will file a resident tax return in the state where you live claiming both your resident and non-resident income. You will also be entitled to a deduction for the taxes you paid in your non-resident state. In the non-resident state, you will file a non-resident income tax return where you will claim only your income from that non-resident state and you will be taxed on it. Basically, you pay the higher of the two states' taxes on your income.
HTH,
Z