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Taxes When working in another state

Posted on 7/6/15 at 10:04 am
Posted by ragacamps
Member since Jan 2011
2997 posts
Posted on 7/6/15 at 10:04 am
WE may be moving to SC and working in Georgia . Can someone explain in layman's how the taxes are treated??

Thanks in advance
This post was edited on 7/6/15 at 10:39 am
Posted by OnTheBrink
TN
Member since Mar 2012
5418 posts
Posted on 7/6/15 at 10:07 am to
quote:

WE may be moving to Georgia and living in South Carolina


One of these should say working, right?
Posted by ragacamps
Member since Jan 2011
2997 posts
Posted on 7/6/15 at 10:38 am to
Sorry.
Yes. Working in Georgia and living in SC
This post was edited on 7/6/15 at 10:54 am
Posted by OnTheBrink
TN
Member since Mar 2012
5418 posts
Posted on 7/6/15 at 10:39 am to
Is it with the military?
Posted by ragacamps
Member since Jan 2011
2997 posts
Posted on 7/6/15 at 10:43 am to
No not military. That would be easy. Florida. I was a resident of Florida while I was in the military.

No my wife is a food scientist and got offered a position in Augusta that I'm not sure we can't accept.

Also I posted this question in the ot, but I always value some of you guy's opinions on this board; where are some nice places to live in the augusta area?
Ive heard live in SC or west of Augusta.

Do You guys agree??


This post was edited on 7/6/15 at 10:45 am
Posted by OnTheBrink
TN
Member since Mar 2012
5418 posts
Posted on 7/6/15 at 11:02 am to
quote:

No not military. That would be easy. Florida. I was a resident of Florida while I was in the military


I know people who live in TN but work in Kentucky at Fort Campbell as civilians but do NOT pay KY income taxes. Where I was going with that question, probably should have worded it differently.

I am also going to bow out cause I have no idea outside of what I listed above. Also, no clue on places to live.
Posted by ragacamps
Member since Jan 2011
2997 posts
Posted on 7/6/15 at 11:10 am to
well we are going to rent for 6 months first to get a feel for the area. They are covering moving expenses up to 25k and that includes closing, agent commission, and movers.

So since we can offer to pay all closing cost, we feel selling our house for a good price for us will be hopefully a short wait.

But really Im confused on how the taxes work.

Do you have to pay taxes in both (doubt it)

]Do you get a credit in the state you live but pay in the state you work (most likely i thinK)

is there an agreement between the states?


If anyone has any understanding or experience with this type of situation please let me know..
Posted by Jcorye1
Tom Brady = GoAT
Member since Dec 2007
71393 posts
Posted on 7/6/15 at 11:17 am to
First of all, I would make sure to talk to the Department of Revenue equivalents for both states.

That being said, most if not all states receive taxes based on where it was earned. If you are working in Georgia, the company is withholding income from you and sending it, using withholding taxes, to Georgia's DoR.

When tax time comes, you should file a Georgia non-resident tax form, which will guide you on how to file, what to claim ect. After that, you should file your SC state tax form, and it should have some sort of way to claim taxes paid in another state. If SC has a higher tax rate, you may have to pay the difference, but yet again it depends on the state.
Posted by bayoubengals88
LA
Member since Sep 2007
18916 posts
Posted on 7/6/15 at 11:23 am to
quote:

No my wife is a food scientist and got offered a position in Augusta
I think I remember you saying how your wife was in a rather limited field. Congrats to you both
Posted by ragacamps
Member since Jan 2011
2997 posts
Posted on 7/6/15 at 11:32 am to
Thanks. Im trying to find out if the two states have a tax agreement but am having problems finding trustworthy info. Ill call the local state office I guess.

But i remember when I lived in the midwest, Illinois for example had an agreement with nearly all the surrounding states. I think Minnesota had some sort of deal with Whisky and Iowa. I may be wrong on the latter but I remember someone telling me that, but Im sure of the Illinois situation.

From what Ive read, a large amount of workers who work on Augusta live either in the western subs or in South Carolina because outside of some very very high priced areas, Augusta isnt exactly a great city, much like BR.
But Ive been to Georgia many times and like almost every other state Ive lived in or stayed for a long period of time, Louisiana falls short in so many ways.

I remember in Minnesota, the roads, schools, cleanliness, education level of population, job opportunities, etc.., were lightyears ahead of my good ole home state of Louisiana.

I love it here but with so few large companies headquartered here, there just isnt enough tax revenue to build infrastructure, schools, etc.. compared to other states,
'
Georgia and Minnesota are similar in that regard. Both have large corporations located in the state. Minnesota was crazy. They had a lot there.

But with the offer she received, i just dont know how we pass it up. We could sell our house, pay off every penny of debt, and will almost double our income just with her salary. Once I find something, we will be making a lot more. Hell I can take a position making 50 or less to start while I look for something close to what I make now and we can be making a decent living. North of 140 household income. I know not Money Board baller status, but a large jump from where we are now. And my wife hasn't be able to find anything in her field here in almost 3 years. All the offers she has received have been from companies in states where we dont want to live. This is the first in a state we would move to and who knows when the next one in a desirable state will come.


Posted by makersmark1
earth
Member since Oct 2011
15811 posts
Posted on 7/6/15 at 6:09 pm to
I live in Evans,Ga.

It is basically a suburb of Augusta. Some people really like it here, some don't.

Schools are good. Evans is kind of "Generica" basically Chili's, Applebee's, etc.

Posted by Poodlebrain
Way Right of Rex
Member since Jan 2004
19860 posts
Posted on 7/6/15 at 6:37 pm to
Applying the general rules of state taxation, you will have to pay Georgia income tax as a non-resident on all of the income earned in Georgia. You will have to pay South Carolina income tax on all income earned everywhere. South Carolina will give you a credit for the income taxes you pay to Georgia so that you are not taxed twice on the same income.
Posted by ragacamps
Member since Jan 2011
2997 posts
Posted on 7/7/15 at 9:46 am to
Thanks
Posted by ragacamps
Member since Jan 2011
2997 posts
Posted on 7/7/15 at 9:47 am to
makersmark1

Is country place ln a nice area??
Posted by Teddy Ruxpin
Member since Oct 2006
39578 posts
Posted on 7/7/15 at 9:53 am to
Is the procedure markedly different if the taxing non resident state doesn't have an income tax?

You wouldn't have anything to show residing state to "credit" so I'm curious.
Posted by ragacamps
Member since Jan 2011
2997 posts
Posted on 7/7/15 at 11:10 am to
Looks like the Georgia income tax is a percentage point lower than SC. I wonder how the difference is calculated
Posted by ragacamps
Member since Jan 2011
2997 posts
Posted on 7/7/15 at 11:11 am to
Looks like the Georgia income tax is a percentage point lower than SC. I wonder how the difference is calculated
Posted by Poodlebrain
Way Right of Rex
Member since Jan 2004
19860 posts
Posted on 7/7/15 at 2:39 pm to
If you reside in the no income tax state then you pay the non-resident income tax to the state in which you work, and that is the end of things. If you work in a no income tax state, but live in a state with income tax, then you pay the income tax to the state you reside in. There is no credit for taxes paid to another state since you did not pay any tax to the no income tax state.
Posted by Teddy Ruxpin
Member since Oct 2006
39578 posts
Posted on 7/8/15 at 1:06 am to
That's what I figured. I hate when my intuition is right when it doesn't benefit me. Thanks

Posted by makersmark1
earth
Member since Oct 2011
15811 posts
Posted on 8/5/15 at 9:53 am to
It's ok, but best schools are lakeside and greenbrier high school
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