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I live in TX my husband lives in NM. TX does not have state income tax. My salary comes from TX, his from NM. why is nm taxing both of our salaries

NM taxes are showing taxable income of 174, 334.  However, his NM W2 has box 1 at 40823.71 and box 5 at 44948.25.  He had some income in Texas for the first quarter of the year.  I live in Texas and all of my income is in Texas

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reiko
New Member

I live in TX my husband lives in NM. TX does not have state income tax. My salary comes from TX, his from NM. why is nm taxing both of our salaries

If you work in one or more of these income tax-free states (for example: Texas) , but live in a state that does withhold income tax — you'll still need to pay taxes on the money you earned in the tax-free state. You'll claim these earnings on the tax return you file in your resident state.  So if you and filing jointly with your husband whose primary residence is in New Mexico, your Texas income is taxable.  You would have to file separately to avoid this.
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