"Harlan Lunsford" <hlunsford[at]bellsouth.net> wrote:
- quote -

Or Denver, which calls it an "Occupational Privilege" tax:
'tis a privilege to work in Colorado where the air is clean
and the wages are low."

--
Tom Healy, CPA
Boulder, CO
Web: http://www.tomhealycpa.com

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Arthur Kamlet wrote:

- quote -

One takes the bitter with the sweet.

- quote -

That would be ironic if the city had an income tax. Don't
know about cities up nawth, but the very few Southern cities
who have a tax, call it an "occupations tax", and therefore
take 1% of the gross. It's not an income tax.

ChEAr$,
Harlan Lunsford, EA n LA
Mon 7 mar 2005

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- quote -

Pennsylvania is an example of a state that still taxes
401(k) contributions. There were time lags in many states
to conformity to allowing deductions for contributions to
IRAs, HR-10 or Keogh plans, and 401(k)s.

The problem with moving from one state to another is that
credits for taxes paid to other states are often limited to
taxes that are paid to the other state FOR THE SAME TAXABLE
YEAR. So if your retirement plan contribution was taxed in
State A when you made it, State B where you reside when you
take the distribution won't allow a credit because the State
A tax was paid in a different year.

California recently changed its regulation to take the "same
year" requirement out of its other state tax credit. We'd
like to get the source rule out too, but that would require
amending the statute.

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

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- quote -

The fun starts when you have contributed to your 401k in a
state that taxes such contributions, then retire to a state
that taxes 401k disributions!

And you didn't ask, but cities in Ohio tax 401k contributions.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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Arthur Kamlet wrote:
- quote -

Do you mean that some states do NOT recognize 401k plan contributions?

ChEAr$,
Harlan Lunsford, EA n LA
Mon 28 Feb 2005

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mbrinkman004 wrote:

- quote -

If you worked in one state while living in another, your
wages earned in the first state would be included in the
second state's wages also.

The state where you are a resident will tax all of your
wages. Other states where you worked will tax the portion
of your income that you earned there. Yes, you are "double
taxed." However, as a general rule the state of your
residence will allow you credit for the taxes you pay to the
other states. In some cases there are reciprocal agreements
between states whereby a resident of one state working in
the other is taxable only in the state of residence.

Unless you never worked in a state where you did not reside
at the time you performed the services, the total income
reported in the state boxes on your W-2s would always be
greater than your total gross income because of this double
counting.

If the numbers still don't make sense, you should question
your employer's payroll department.

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

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mbrinkman004 <megan.brinkman[at]gmail.com> wrote:

- quote -

Some states tax more than federal taxable income.

For example, 401k deductions are not taxed on your federal
tax return but might be taxable income for the state.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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"mbrinkman004" <megan.brinkman[at]gmail.com> wrote:

- quote -

There are several possible explanations for a difference
between federal wages and state wages, such as contributions
to a 401K, contributions to a health-care flexible spending
account, etc.

--
D.F. Manno
dfm2a3l0t2[at]spymac.com
"The work goes on, the cause endures, the hope still lives
and the dream will never die."

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"mbrinkman004" <megan.brinkman[at]gmail.com> wrote:

- quote -

You assume that state taxable wages necessarily equal
federal wages. That's not necessarily true. If you have
questions regarding the numbers on the W-2, you should
direct questions to whomever provided it to you.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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"mbrinkman004" <megan.brinkman[at]gmail.com> wrote

- quote -

Some states require certain benefits to be included in your
income that are excluded for federal purposes. So, the
total of the state wages is going to be higher in those
states. Maybe ask your company payroll department how that
works.

Otherwise, list the state(s) you worked in and someone might
have the answers.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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mbrinkman004 wrote:

- quote -

No way for us to know without naming the states. However,
it is quite possible for state wages to be higher than
federal wages. Not all states conform to federal rules
regarding tax free employer fringe benefits. In addition,
(I don't have state conformity rules in front of me), some
states may not conform to any of the allowable pre-tax
flexible spending accounts or certain pre-tax retirement
plan contributions.

--
Alan
http://taxtopics.net

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mbrinkman004 wrote:

- quote -

Assuming the amount in state box of your resident state W2
is equal or less than THE total taxable, wouldn't worry
about it. Just file with the other two states the correct
amount.

ChEAr$,
Harlan Lunsford, EA n LA
Sun 27 Feb 2005

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"mbrinkman004" <megan.brinkman[at]gmail.com> wrote:

- quote -

We would need more information about your wage details; it's
possible that a pre-tax deduction for federal purposes
wasn't allowed by one or more of the states; otherwise,
you'll need to talk with HR to straighten it out.

--
Tom Healy, CPA
Boulder, CO
Web: http://www.tomhealycpa.com

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"mbrinkman004" <megan.brinkman[at]gmail.com> wrote:

- quote -

A definite answer is impossible without more information.
If you're working outside your state of residence,
ordinarily all your income will be taxed by your resident
state and the "foreign" income also taxed by the state(s)
where you worked. If this is the case, you do the
nonresident return(s) first and take a credit on your
resident return for the out-of-state taxes paid.

There's also a slight chance that your state doesn't allow
some sort of box 1 exclusion that the feds do allow, e.g.
401(k).

--
Phil Marti
Clarksburg, MD

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Wondering is someone might be able to explain what I do with
4 W-2s 3 from one employer in which I was a consultant
(lived and worked in different states. The state wages (box
16) from these 3 W-2s sum up to more than my total
wage/salary (box 1). Is my income being counted twice in
diffent states? Am I then getting double taxed?

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