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Kiplinger
Kiplinger
Business
Roxanne Bland

Living in One State, Working in Another: How to Avoid a Tax Season Headache

The words double taxation on stacked wooden blocks.

People who live in one state but work in another can feel caught in a tax tug-of-war. Both states may have a legitimate claim to the income taxes — the first state because that’s where they reside, the second because that’s where the money was earned.

That means there’s a potential for double taxation. Fortunately, some states have taken steps to mitigate the possibility. But…other states have not.

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