The IRS and your employer understand that you may have two different addresses:
- Your mailing address
- Your physical address
You pay taxes to the state where you live AND where you work. Typically, states will give you credit for taxes you pay to the other state.
If your employer understands that your mailing address is not the address of your physical residence, then they will only withhold tax for the state where you actually live. Otherwise, you may have to file a tax return to claim a refund of taxes paid to your parents' state.
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