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Chi-town Bear
04-10-06, 02:13 PM
How does it work?

If I'm employed in, say, New Mexico, which has a state income tax, but my residence is just over the border in Texas, which has no state income tax, do I have to pay the New Mexican state taxes?

BUphatty
04-10-06, 02:19 PM
I think its where you're employed.

I've heard many times when talking about free agents in various sports, how they have to consider their contract offers different in texas because there are no state taxes.

OtherBldg
04-10-06, 02:32 PM
Where you earned the money, that state wants taxes on those dollars. A person earning money in NM and living in Texas would need to file some sort of non resident return for NM showing what was earned in NM. (I believe - consult your tax professional for complete and solid advice)

The reason it is an issue with FA in sports comes into play where they play most of their games. If they play most of their games in Texas, then most of their income is not taxed at the state level.

ghost dog
04-10-06, 02:39 PM
residence in general terms means where you live and where you work.

last year i started the year working in Oklahoma. then in March moved down to Texas and began working.

my house and wife were both still in Oklahoma- she worked thru September...

on a joint return-that year we're considered part year non-residents and will have to pay taxes on the income that we earned in that state.

the previous 2 years we lived there, we had to file as tho we were residents.

if you live in a state and work in a state you basically have to be considered a resident and pay income taxes.

just the way it works.

ghost dog
04-10-06, 02:45 PM
residence in general terms means where you live and where you work.

last year i started the year working in Oklahoma. then in March moved down to Texas and began working.

my house and wife were both still in Oklahoma- she worked thru September...

on a joint return-that year we're considered part year non-residents and will have to pay taxes on the income that we earned in that state.

the previous 2 years we lived there, we had to file as tho we were residents.

if you live in a state and work in a state you basically have to be considered a resident and pay income taxes.

just the way it works.

BCC97
04-10-06, 02:53 PM
How does it work?

If I'm employed in, say, New Mexico, which has a state income tax, but my residence is just over the border in Texas, which has no state income tax, do I have to pay the New Mexican state taxes?
I live in Texas. For the 2005 tax year, I had to file 6 state (non resident) income taxes and 3 city (non resident) income taxes...of course in addition to the federal return. It's a b!tch, but what are you gonna do?

And Those Twins
04-10-06, 03:18 PM
I was incarcerated in Arizona and had to pay state of Texas taxes.

Chi-town Bear
04-10-06, 04:14 PM
thanks. i was looking for a way to save some money, but i guess it won't work. dang.