State income taxes
Today taxes were due. Tax Freedom day is later this month- April 23- the day on which Americans have earned enough money to pay all their federal, state and local taxes for the year. It's three days earlier than last year.
Remember you need to file an income tax return in each state where you have earned income or a W-2. This is true even if you domicile is one of the no-income-tax-states: TX, SD, NV, FL, WA, AK, WY. The only way to avoid state income taxes is to work in a no-income-tax state AND be domiciled in a no-income-tax state.
If you work in a no-income-tax state (such as Texas) but are domiciled in a state with state income taxes, you will pay incomes taxes on your TX income to your domicile state. If you work in a state with income taxes and are domiciled in a state with income taxes, you'll pay taxes to the state where you earned it (such as Colorado), and you would get a credit for the taxes paid and not have to pay taxes on that same income again in your domicile.
Of course the federal government wants its money no matter where you earn your income.
I hope you got that straight in time to file today! Jaimie Hall-Bruzenak
For more information on the legal and financial implications of working on the RV road, see Jaimie's 2nd edition of Support Your RV Lifestyle! An Insider's Guide to Working on the Road, see RVBookstore.com.
Remember you need to file an income tax return in each state where you have earned income or a W-2. This is true even if you domicile is one of the no-income-tax-states: TX, SD, NV, FL, WA, AK, WY. The only way to avoid state income taxes is to work in a no-income-tax state AND be domiciled in a no-income-tax state.
If you work in a no-income-tax state (such as Texas) but are domiciled in a state with state income taxes, you will pay incomes taxes on your TX income to your domicile state. If you work in a state with income taxes and are domiciled in a state with income taxes, you'll pay taxes to the state where you earned it (such as Colorado), and you would get a credit for the taxes paid and not have to pay taxes on that same income again in your domicile.
Of course the federal government wants its money no matter where you earn your income.
I hope you got that straight in time to file today! Jaimie Hall-Bruzenak
For more information on the legal and financial implications of working on the RV road, see Jaimie's 2nd edition of Support Your RV Lifestyle! An Insider's Guide to Working on the Road, see RVBookstore.com.
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