4 ms·
After MD v Wynne, I think they'd have to give tax credits to income tax paid in other states if they tried that.
by qppo 6y ago
After MD v Wynne, I think they'd have to give tax credits to income tax paid in other states if they tried that.
- ninkendo 6y agoYup, this is what happened to me this tax year, but only for stock options, not for regular income. I work for a CA company, but remotely from the midwest (home office), and I pay CA taxes for the stock vests I got from my company last year (because I lived in CA when the grant occurred.) But I also paid taxes in my home state for the same stock. I just filed an "Other State Tax Credit" in CA (form 540 Schedule S), which effectively made CA give me a refund equal to the amount I paid in my home state. Same thing would happen if my regular salary was taxed. It effectively means you pay the higher tax of the two states: if the state you live in has higher taxes (NY for instance), CA would have to essentially refund you all the taxes you paid; whereas if you live in a cheaper state (more likely), you effectively pay a CA income tax rate overall, since CA is keeping the remainder after refunding you for the other state.