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If I'm legal resident of a state with no state income tax, but work a W-4 job in a different state that has a very high state income tax... (lemmy.world)

submitted 10 months ago by LemmyKnowsBest@lemmy.world to c/personalfinance@lemmy.ml

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... is it normal/legal for the state I work in to withhold state income tax from my paychecks?

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[–] dhork@lemmy.world 2 points 10 months ago* (last edited 10 months ago) (1 children)

Most states tax you according to where you live, not where you work. Several exceptions exist, though. One notable exception is New York State, which will tax you if your employer is based there, even if you don't live there, unless it can be demonstrated that the employer needs you to live outside the state to do your job. (Google "NY convenience of the employer" for more info on that.)

I would talk with your HR department. It's possible that they determined you are responsible for taxes in both states, and misfiled the paperwork.

[–] LemmyKnowsBest@lemmy.world 1 points 10 months ago

They insisted that I provide an in-state address so I gave them the address of a nearby post office. But I told them over and over and over again that my out-of-state address is my residence. They didn't like that and they refused to use it. They put the in-state post office address as my residence and they are taxing me based on that.