9 ms·
State A has a law that says if you spend 1 day in State A you owe the income tax for that day. State B has a law that says if you spend more than 180 days a ye
by verve_rat 5y ago
State A has a law that says if you spend 1 day in State A you owe the income tax for that day.
State B has a law that says if you spend more than 180 days a year in State B, then you owe State B income tax for the full year.
Now you owe tax for that 1 day to both states.
- paxys 5y agoIf state B had such a law then it would be illegal. Even California, which is notorious for its tax policies, draws the line at “California-sourced income”, unless it was from a tax-free or lower taxed state, in which case you will only owe the difference. The Supreme Court has ruled on this as well - https://www.cpajournal.com/2017/10/26/icymi-supreme-court-rules-two-states-may-not-tax-income/ https://www.cpajournal.com/2017/10/26/icymi-supreme-court-ru...