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Q. So, if I understand the link you sent correctly, with my filing status "Married/RDP filing jointly no dependents, both are under 65" my threshold is $38,624 of Salary earned while I am in California?
A. No. Your filing threshold is $38,624 of total income, regardless of where earned. But, as others have said, CA will only tax the income earned in CA, not your total income.
Q. I sometimes travel to and work in other states. Am I required to file taxes and pay tax to those states.?
A. Yes, but almost "nobody" does. But you should.
See http://money.cnn.com/2013/06/28/pf/taxes/business-traveler-tax-threat/ If you live in a state without an income tax (e.g. FL or TX), it’s more likely you should file in the work states. You can't use the "it all comes out even" rationale for not filing.
Actually CA's filing thresholds for MFJ under 65 with no dependents are $38,624 of total gross income OR $30,901 of CA adjusted gross income. Exceeding either threshold gives you a filing requirement in California. These numbers are for the 2022 tax year and of course may change from one year to the next.
Every state with an income tax has a filing threshold for non-residents. The threshold amounts, of course, vary from state to state. Pennsylvania's filing threshold, for example, is only $33 of PA gross taxable income.
A number of states have a reciprocal agreement with neighboring states. A reciprocal agreement means that if you live in one of the states and work in the other, you only have to file a tax return in your home state. Reciprocal agreements are much more common in states east of the Mississippi. California does not have any reciprocal agreements. Nor, of course, does Texas.
I stopped by a local tax office in Georgia and confirmed that if my company has my place of employment listed here in Ga, then what you are talking about applies to me. Therefore, since Texas has no state income tax (which is a joke because Texas collects its state income tax through property taxes (on a $400K house one would pay 3% or $12,000 a year in property tax in Texas vs $1,500 in Ga.) and I would be paying about $10K a year in Georgia Tax plus the 3% per year on a house in Texas. I will take the new position in Texas so I do not get double taxed, Thanks for all the replies!
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