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Old 03-17-2006, 07:33 AM
Katie
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Default Re: Worked in two states--must file with both?

Ethan wrote:
- quote -

> "Katie" <katiej_1958[at]yahoo.com> wrote:

> > Both Utah and Arizona will tax your Utah earnings. However,
> > Arizona will allow you credit for the tax you pay to Utah,
> > limited to the proportion of your total Arizona tax
> > liability that arises from the "double-taxed" income.
> > > Net, you end up paying state income tax on that income at

> > the higher of the two states' average rates for your filing
> > status, income level, etc.


> Thanks. Yes, I actually figured it out myself by the time
> my question was posted. Utah has high state taxes. I made
> 9% less overall income in 2005 than 2004 but paid 8% more in
> state taxes for 2005. Yes, the way the "credit" is
> calculated seems to screw me more than if I were to work
> exclusively in one state.


Well, if you worked in Utah exclusively, you'd pay the
higher Utah rate on ALL of your earnings.

But you would pay less tax overall if you had stayed in AZ
all year.

Katie in San Diego

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #3  
Old 03-16-2006, 10:03 PM
Ethan
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Default Re: Worked in two states--must file with both?

"Katie" <katiej_1958[at]yahoo.com> wrote:

- quote -

> Both Utah and Arizona will tax your Utah earnings. However,
> Arizona will allow you credit for the tax you pay to Utah,
> limited to the proportion of your total Arizona tax
> liability that arises from the "double-taxed" income.
> Net, you end up paying state income tax on that income at
> the higher of the two states' average rates for your filing
> status, income level, etc.


Thanks. Yes, I actually figured it out myself by the time
my question was posted. Utah has high state taxes. I made
9% less overall income in 2005 than 2004 but paid 8% more in
state taxes for 2005. Yes, the way the "credit" is
calculated seems to screw me more than if I were to work
exclusively in one state.

Ethan

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #2  
Old 03-16-2006, 06:19 AM
Katie
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Posts: n/a
Default Re: Worked in two states--must file with both?

Ethan wrote:

- quote -

> My permanent home is in AZ, but in 2005 I worked in both AZ
> and had a summer job in UT.
> AZ Resident Personal Income Tax Form 140A says that "If you
> leave AZ for a temp. period, you are still an AZ resident
> while gone. A resident is subject to tax on all income no
> matter where the resident earns the income." So, does this
> mean that I do not have to file with UT? I wouldn't be
> taxed fully by two different states on the combined incomes,
> would I? Thanks.


Yes, you would <G> . Well, not exactly.

Both Utah and Arizona will tax your Utah earnings. However,
Arizona will allow you credit for the tax you pay to Utah,
limited to the proportion of your total Arizona tax
liability that arises from the "double-taxed" income.

Net, you end up paying state income tax on that income at
the higher of the two states' average rates for your filing
status, income level, etc.

Katie in San Diego

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #1  
Old 03-16-2006, 06:00 AM
Seth Breidbart
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Posts: n/a
Default Re: Worked in two states--must file with both?

Ethan <ethan448[at]NOSOLICITINGyahoo.com> wrote:

- quote -

> My permanent home is in AZ, but in 2005 I worked in both AZ
> and had a summer job in UT.
> AZ Resident Personal Income Tax Form 140A says that "If you
> leave AZ for a temp. period, you are still an AZ resident
> while gone. A resident is subject to tax on all income no
> matter where the resident earns the income." So, does this
> mean that I do not have to file with UT?


No. UT will want taxes based on the money you earned in UT.

- quote -

> I wouldn't be taxed fully by two different states on the combined
> incomes, would I?


Sort of. AZ should give you a credit for the lesser of the
amount you pay UT, or the amount AZ taxed you on the amount
you earned in UT.

Seth

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
 
Old 03-16-2006, 05:21 AM
Phil Marti
Guest
 
Posts: n/a
Default Re: Worked in two states--must file with both?

"Ethan" <ethan448[at]NOSOLICITINGyahoo.com> wrote:

- quote -

> My permanent home is in AZ, but in 2005 I worked in both AZ
> and had a summer job in UT.
> AZ Resident Personal Income Tax Form 140A says that "If you
> leave AZ for a temp. period, you are still an AZ resident
> while gone. A resident is subject to tax on all income no
> matter where the resident earns the income." So, does this
> mean that I do not have to file with UT? I wouldn't be
> taxed fully by two different states on the combined incomes,
> would I?


You file as an AZ resident and UT nonresident. There is
probably a credit on your AZ return based on the UT tax
paid. Do your Federal return, then UT, then AZ.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #-1  
Old 03-15-2006, 08:08 AM
Ethan
Guest
 
Posts: n/a
Default Worked in two states--must file with both?

My permanent home is in AZ, but in 2005 I worked in both AZ
and had a summer job in UT.

AZ Resident Personal Income Tax Form 140A says that "If you
leave AZ for a temp. period, you are still an AZ resident
while gone. A resident is subject to tax on all income no
matter where the resident earns the income." So, does this
mean that I do not have to file with UT? I wouldn't be
taxed fully by two different states on the combined incomes,
would I? Thanks.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
 

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