State Income Tax Question

[Alan L.]

I am in the I.T. business. I work from home in Alabama. My employer is headquartered in Virginia. Do I have to file Alabama State Income Tax?

Here's another wrench in the equation - Even though I work for a company HQ'd in Virginia, the branch I work for is in Florida (which pays no state tax).

Any tax pro's out there? I really don't need any more speculation...

Thanks,
Podunk

Generally you must file a resident return in the state in which you live and report all of your income in that state, regardless of source. You might also have to pay tax in the other state, but most states have credits for taxes paid to other states to mitigate the double taxation problem. Some adjacent states have agreements whereby employees who live in one state and work in the other don't have to report in both states.

To learn a lot about taxes in a particular state, a Google search "name of state taxes" usually will get you the department of revenue for that state, and there is usually plenty of information there.

 

[dmccarty]

My parents still live in FLA. What they pay for house insurance I can pay my house insurance AND property taxes and have a couple of grand left over. Our house are roughly equal in prices but since their house has been on the market close to a year and less than 6 showings, my house might be worth more and I'm 45 acres.

And that is if you can even get insurance on a house. May policies have been dropped and the Govenor is having to play hardball to keep more from being dropped.

I haven't even talked about what they pay in property taxes.... The State is going to get the money to run the state from one from of taxes or another. Just take your pick of poison. But FLA is VERY expensive to live, alot of the tax bill is picked up by tourists.

To the subject of the thread, get a CPA, Get A CPA, GET A CPA. They are the ones that will know for your specific circumstances. We have gone to a CPA for advice a few times, seems like the bills have been around $100 for a hour or two of their time. Well worth the money.

Later,
Dan