Hello,
Pl. clarify the following. I am using some numbers to illustrate the problem, not that they are real numbers, nor need to apply any tax brackets etc. But I want to understand the generic priniciple. Pl. consider this scenario.
- I live and file taxes in Arizona. And state tax % is approxmately is, say 5%. Most of my income is Arizona income, say it is 300K
- However I have an additional income from California also, and the income say $200,000. CA tax % is say 10%
So total income is 500K. With this situation, when I need to pay taxes ...
- Do I end up paying 5% of the CA income of 200K besides 5% of AZ income of 300K to AZ?
- And also another10% of the CA income 200K to CA as well?
OR
- Will I be paying only 5% of AZ income of 300K to AZ
- And 10% CA income of 200K to CA
Pl. help understand how this works.
regards
Basic
