Living and Working in Different States Can Be a Tax Headache

Living in one state and working in another can trigger a number of tax issues. Here are several things to keep in mind if you and/or your spouse are in this situation.

Picture of Interstate Sign with State Tax
(Image credit: Getty Images)

Lately, more people are getting jobs a different state than where they live. But living in one state and working in another can bring up potentially complciated tax issues. For instance, if you live in one state and work in another, which state income tax return should you file? Do you need to pay taxes for two states? Let's try to answer some of those questions.

Where to file taxes if you live and work in different states

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William Neilson

William formerly worked as a Tax Editor at Kiplinger beginning in 2021. Before that, William worked in the tax world for over 15 years. He spent time working at the IRS, the U.S. Tax Court, and several private law firms where he dealt with both individual and corporate clients. He has a B.A. in Journalism from the University of Georgia, a J.D. from the Loyola University College of Law, and an LL.M. in Taxation from the Northwestern School of Law.