Is it possible to use a virtual or UPS mailbox as an address to work in a specific state and then owe the state you live in money during tax season?

[xmasbaby0]

Not sure what you think using a post office box has to do with it.   If you work in one state and live in another state then it is entirely possible to pay tax to the state you work in and to the state you live in.   It also depends on the state(s) you are asking about. There are several states that do not have a state income tax, and there are states that have reciprocal tax agreements with each other.

If you live in a state with a state income tax, and work in a state with a state income tax, you should prepare a NON-RESIDENT tax return first for the state you worked in, and then prepare a state return for the state where you live.  That way you get credit from one of the states for the tax paid to the other one and are not "double" taxed.

We can be more helpful if you provide details as to what state you live in and what state you work in.

[rjs]

Your mailing address has nothing to do with what states you pay tax in. You pay tax based on where you actually work and where you actually live.

[Opus 17]

Your mailing address is not relevant.

First, you owe state income tax on all your world-wide income to the state where you are a permanent resident.  We can go into more detail about what that means if you ask.

Then, if you temporarily live or work in another state, you also owe income tax in that state for income earned or paid while working in that state.  To reduce the burden of double-taxation, your home state will usually give a credit for taxes paid to another state.  

Certain neighboring states have reciprocal tax agreements that mean if you live in one and work in the other, you only file one tax return.

And lastly, a state might see your address and assume you owe state taxes, but that does not make them right.

To give you any better help, we would need to know where your permanent residence is located, where you actually physically live and work (temporarily or permanently), what state is trying to tax you and so on.