Think Kirk is right. As long as you work in Pa. and Pa has an income tax , you will own them that tax.
When I was still a worker bee I lived in Ohio and worked in Il.. I paid tax in both states.
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Maybe I wasn't clear enough. That's exactly how it works for all states, PA isn't an exception.
For tax year 2007, we paid taxes in GA, VA and MD. If we get sent to FL or TN, no state income taxes will be deducted from his wages. DH didn't get taxed for those states even when we lived in GA. Residency really doesn't matter except for insurance and registration fees. Or unless you're from states like OR that you're taxed on the difference over and above what you paid working in another state.
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hitchup wrote: Residency really doesn't matter except for insurance and registration fees.
Another consideration would be "unearned income" (such as interest income or gain on the sale of property). When you file a non-resident state income tax form, you only report "income earned" in that state, as reported on your W-2.
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My last post wasn't as clear, I knew what i was tring to say. Sorry. what I was trying to say is i want to avoid PA income tax on wages earned in OTHER STATES, as well as unearned income. But it is my understanding (from reading the PA internal revnue site) that if one is required to file a pa return one must claim ALL wages even if earned out of state. Maybe i didn't understand the site...i'll have to ask my tax guy.
OK. Check to see if PA gives a credit for tax paid to another state (Most do).
This is the way it has worked for me: My home state is a income tax state. When I work out of state, that state's tax is withheld. When I file for that state, the first line (on some) is Federal Adjusted Gross Income (which is all your income, of course, with some adjustments depending on the state). Further down the form, at "tax computation", nonresidents are directed to another schedule or form which computes tax on "income earned from sources in" that state.
When I file for my home state, I file a extra form for credit for tax paid to another state, and have to attach a copy of the other state form.
So, if it works like that in PA, and you have unearned income and income earned in a state other than PA, it may pay you to "move" to FL (depending on the other considerations)(health ins. also).
Getting into these tax forms (especially state) sometimes seems like getting on a merry-go-round, and then half way thru they stop and spin it the other way!
Best thing to do is ask your tax guy (and a second opinion wouldn't hurt).
I would also consider what elho146 and Aridon said. I have heard of states that want you after 60 days. An out of state vehicle at work is not such a big deal, but at your house could irritate someone.
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Just sell that money-sucking house, and claim a bench at the city park (I mean - park at the nearest campground!).
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Kirk wrote: I don't know of any state that does not require payment of income tax on any money earned while working there.
FL. doesn't require any payment of income tax.
He was referring to working in states with income taxes. Regardless of your domicile in a non income tax state the state with the income tax still wants their cut for work in their borders.
J-R wrote: OK. Just sell that money-sucking house, and claim a bench at the city park (I mean - park at the nearest campground!).
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Good luck!
The house isn't so bad. Its the tax on the wages we earn. Even the property tax isn't that bad. For whatever reason when the government (PA state and fed) sees someone being successful they tax the hell out of them. I don't mind paying my fair share but it makes me VERY angry to see those who make less than me paying half (think percentage wise) as much as I do.
I was talking with my tax guy the other day...he basically told my wife to quit working and me to stop working as much. How sad is that? We can pocket roughly the same amount of $$$ by working less?!!?? Its no wonder our economy is in such shambles. Wouldn't it sound logical to tax me at a more fair rate? Which would allow me to buy more things, which would stimulate the ecomomy? But NO, rest assured this year i'll just work less, pay less taxes and earn the same!?!? I know one thing, they won't be spending as many of my $$$ next year!
I am only 30, no kids yet. While I am able (read no kids part) I bust my hump to make money. Every dime I can save I do save. I know full well that Social security won't be there for me, that money is just one more thing the feds rob from me. That being said I also know full well that that there will be things I will want in retirement. Which is why i am earning and saving NOW...so i can take care of me, something that apperently the govt doesn't want me to do.
Youngguy: when we were in our early 30's, we had 6 kids. We didn't get the tax breaks our children now get. So I know what you mean. Since there's only the 2 of us, I did quit working. My salary was only 1/3 of what DH would make some years. So now that we're FTing, it keeps us both happy.
We just watched an HBO (?) documentary on Joe Louis. At one time the government was taxing him at 90%.
Moderator note...please leave the politics out. Back to the topic.
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FL. doesn't require any payment of income tax.
