Live and Work in Different States….Who Do You Pay?

An interesting question I came across was, “What if I work in one state, but live in another? Who do I pay my income tax to?” Common question with a pretty easy answer. Which state provides you with your income? The state you work in of course! So, e.g. You live in New Jersey but work in New York; New York is the state that is taking those tax with-holdings you fill out on your W4 forms, so therefore, New York is the state that will be collecting your income tax. Now, I know what you are wondering? Does that mean I am paying double the tax? Absolutely not! The state in which...