How do state income taxes work when you work in a different state?
October 22, 2013 7:11 AM Subscribe
My husband and I just switched our legal residency to a state with no income tax (South Dakota). This is very common amongst full-time RVers because SD recognizes a full time travel status
. However, we're neither working nor living in South Dakota, so how do state taxes work?
posted by desjardins to work & money (9 answers total) 2 users marked this as a favorite
Up until last weekend, we were legal residents of Wisconsin, which is where we've lived and worked all year. So, I know for sure that we will pay Wisconsin taxes for 2013. We're expecting to stay in Wisconsin until spring-ish, then we're not sure. The ideal is to find jobs we can do remotely and travel around somewhat indefinitely.
We do not own property anywhere, and our only mailing address is in South Dakota. Will we be paying taxes in whichever state we work? Or the state the company is based in (if we're working remotely and traveling)?
Our taxes are uncomplicated - married, filing jointly, W-2s, no capital gains or weird deductions. We absolutely want to stay on the right side of the law and not play games that would draw negative attention. We fully recognize that we'll pay federal tax no matter where we live/work.