… is it normal/legal for the state I work in to withhold state income tax from my paychecks?

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    11 months ago

    You need to look this up specifically for the states involved. It varies. Some neighboring states have reciprocity agreements if they have a major city near a shared border. Frequently what happens is you’ll have to file in both states, but one will give you a non-refundable credit for the tax amount paid in the other.

    I suspect that in your situation you’ll end up having to pay the full amount of income tax of the state your employer is in.

    Whether that’s legal: states get to do whatever they want to collect taxes.

    https://www.cnn.com/2022/03/01/success/state-income-tax-ramifications-remote-work/index.html

    • LemmyKnowsBest@lemmy.worldOP
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      11 months ago

      I guarantee I will not have to file in my home state because I deliberately chose that state for residency because it has no state or personal property taxes and no annual vehicle inspections.