If I work in Georgia but spend most of my time in California (working remotely). Officially I am located in Georgia. I rent an apartment at both the places - in Georgia and in California. Do I have to pay state taxes on my income tax in both the states?
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1This question is probably better suited to Personal Finance & Money. Try searching for it over there and if you can't find a similar question that provides you with an answer, ask there.– BishopCommented Jun 13, 2016 at 17:52
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1Most likely you have to pay to both. The usual arrangement is that if you're physically present in California when you work, you have to pay CA tax on that income. For days when you're in Georgia, you pay GA tax. Whether you've rented an apartment anywhere is of lesser importance. I don't know the specifics of tax law in either state, though, so I don't know how it will work in your case. The personal finance site is, as Bishop suggests, more likely to have your answer.– phoogCommented Jun 13, 2016 at 18:53
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1 Answer
You are a resident of one state, and a non-resident of the other. Or you could be a "part-year resident" of both. Read the applicable personal tax rules for each state, or hire an accountant to do it for you.
Note that, in the end, each dollar of income is only taxed by one state. It's figuring out which state that gets tedious.
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2The state of residence could tax all of the income, perhaps giving a credit for taxes paid to the other state. That's how it works for me.– phoogCommented Jun 13, 2016 at 18:54
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@jqning - It can work that way. More often, especially for W-2 employees, taxes are withheld by default for the state where the income is earned ... or sometimes just where the company is headquartered. It's up to the recipient, if challenged, to convince all jurisdictions with a nexus to their income that they have allocated their state taxes correctly.– feetwet ♦Commented Jun 14, 2016 at 2:00
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There are usually details rules and allocation formulas provided with the non-resident and part-time resident tax form booklets. Resident is often defined to mean a place where you spend a majority of your nights sleeping in a year (if any). It also matters where the income was earned and the nature of the income. Commented Mar 27, 2020 at 16:37