I'm not sure if this is an appropriate question for here but....My primary residence is in Idaho, but I also have a non-primary residence in Utah. I have a part-time job where I physically work in Utah. My tax person is telling me that my employer should be withholding Idaho tax withholding, not Utah. My employer tells me that because work is performed in Utah I should have Utah tax withholding withheld.
Who is correct?
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Work actually performed in UT is only subject to UT tax withholding
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There are some few states who have so-called Reciprocal Tax Agreements between them...where they let cross border workers have that income applied only to their resident state taxes and withholding. Neither UT nor ID have such an agreement with any other state.
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Thus...your UT income gets taxed on your UT non-resident tax return.
ID gets to calculate a tax on ALL your income, including the UT income...but as a part of the tax filing, ID lets you take a tax credit for the taxes that you had to pay to UT. (that avoids double taxation)
You need to do the UT non-resident tax return first...so that the exact UT tax liability is calculated for this eventual ID credit. (The credit is not what was withheld for UT..it is the total amount UT actually keeps.)
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