Saturday, February 11, 2012

Like it sais, ill be working in West Virginia, but I live in Kentucky. Are both states going to tax my paycheck?|||Dear Dan: That is up to you. Your employer has to with hold taxes based on how you claim your situation. Married/single - allowances or no. If you are single and you claim single/1 less tax will be with held than if you claim single/0. Kentucky will tax all of your income but WV will require you to file as a non-resident and give you credit for taxes paid to Kentucky.

Look at both web site to get an idea of the tax rates. Multiple state filing is not easy, so get some help at least the first year.

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent.|||WV and KY have a tax reciprocity agreement in place. File WV form IT-104 (WV Withholding Certificate) with your employer and complete the Certificate of Non-Residence on the bottom of page 2 and give that to your employer. Here's a link to the form: http://www.state.wv.us/taxrev/forms/2009鈥?/a> . (Don't fill out the withholding certificate, only the non-resident certification.)

If your employer can withhold KY income taxes, ask them to do so for you. If they cannot you will have to make quarterly estimated tax payments to KY using form 740-ES. Here's a link to that: http://www.revenue.ky.gov/NR/rdonlyres/0鈥?/a>|||depends on the longevity of this work
if it is less than a year, you will file Ky state tax
your tax home is where you work(except for short temporary durations, less than a year)
you will probably have WVA income tax withheld unless your employer will withhold only Ky income taxes

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