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Author Topic: Income tax one state to another  (Read 3942 times)

Chad Warner

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Income tax one state to another
« on: July 17, 2003, 09:36:16 pm »

I was wondering...

In NH there is no income tax however if you work in Massachusetts you pay MA Income tax.

If I work in Ft Collins and live in Cheyenne, do I pay both?
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Michelle

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Re:Income tax one state to another
« Reply #1 on: July 17, 2003, 10:01:06 pm »

I was wondering...

In NH there is no income tax however if you work in Massachusetts you pay MA Income tax.

If I work in Ft Collins and live in Cheyenne, do I pay both?

Yes, unfortunately if you work in one of the states surrounding NH, you will have to pay income tax in that state by the laws of that state   :(

Luckily, the job market is strong enough in NH that most people who work outside of the state do so by choice rather than necessity. My husband, for example, has worked for the same employer in Maine for 12 years. He has had multiple recruiters call him for jobs in New Hampshire, but he likes the company he works for and chooses to stay there even though it means paying the Maine income tax.
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Karl

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Re:Income tax one state to another
« Reply #2 on: July 17, 2003, 10:06:50 pm »

If I work in Ft Collins and live in Cheyenne, do I pay both?

Typically, you are taxed by the state in which you work.  In this case, you would be subject to CO's 4.63% flat income tax.
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Mickey

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Re:Income tax one state to another
« Reply #3 on: July 17, 2003, 10:38:29 pm »

That brings up a good point. Many WY supporters point out that WY's job market deficiency is counteracted by the possibility of commuting to CO., but we'll never be able to eliminate the income tax in CO. There are pleanty of jobs inside of NH, safe from taxation.
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Ubi libertas ibi patria
Where there is Liberty, there is my homeland.

Karl

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Re:Income tax one state to another
« Reply #4 on: July 17, 2003, 10:45:22 pm »

That brings up a good point. Many WY supporters point out that WY's job market deficiency is counteracted by the possibility of commuting to CO., but we'll never be able to eliminate the income tax in CO. There are pleanty of jobs inside of NH, safe from taxation.

Right.  Those jobs are also an hour or more drive from the closest Wyoming towns.  Income tax + 2 hours a day in car = unhappy camper.  I wonder how many Fort Collins commuters will get fed up and move to Fort Collins?
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freedomroad

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Re:Income tax one state to another
« Reply #5 on: July 18, 2003, 12:15:08 am »

That brings up a good point. Many WY supporters point out that WY's job market deficiency is counteracted by the possibility of commuting to CO., but we'll never be able to eliminate the income tax in CO. There are pleanty of jobs inside of NH, safe from taxation.

Right.  Those jobs are also an hour or more drive from the closest Wyoming towns.  Income tax + 2 hours a day in car = unhappy camper.  I wonder how many Fort Collins commuters will get fed up and move to Fort Collins?

I will tr to clear up a few errors from your post:

1. Wyoming has plenty of jobs for us.  I sent Jason a report a few days ago that explains how all of the states have plenty of jobs.

2. It would not be hard to travel to NE, CO, SD, or MT for work from Wyoming (not that there is any need to do so).  In fact, people could travel to Utah if they only needed to do it a few days per week for the winter months.

3. You mention Ft. Collins.  It is around 40 min from Wyoming and 45 min from Cheyenne.  I know quite a few people that travel 45 min. to work.  In fact, everyone that lives in the far out Memphis suburbs and drives to downtown for work during rush hour drives at least 45 min to work (and there are lots of these people and every big city has them).  

4.  Wyoming has no income tax.  It does not tax wages, interest, dividens, or business income.

5. CO has a low income tax.  People should have little more reason to leave Wyoming for work than they have to leave DE or NH.  Most of the states around WY are low income tax states while most of the states around NH are high income tax states.

6. An out-of-state commute has many good points like the ability to recruit and network with other freedom groups.

7.  This is the big one.  People have no more need to work out-of-state in WY than they do in NH.  However, NH has a high cost of living and high housing costs.  In fact, NH housing costs are sky high near Boston.

Wyoming has a low cost of living and low housing costs.  Both CO and MA par workers very well.  However, if you figure in the median CO income for someone with a WY cost of living, it is much HIGHER than a median MA income for someone with a NH cost of living.
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Eric

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Re:Income tax one state to another
« Reply #6 on: July 18, 2003, 12:27:35 am »

Those jobs are also an hour or more drive from the closest Wyoming towns.  Income tax + 2 hours a day in car = unhappy camper.  I wonder how many Fort Collins commuters will get fed up and move to Fort Collins?

I guess what is acceptable for a commute depends on where you're from...  Here in scenic Fredericksburg VA (considered the southernmost part of the Washington DC commuting area) I go 45 minutes each way to work, and by local standards I have a pretty easy commute (light traffic).    I can think of several co-workers who do more than 1 hour each way and I know someone who actually goes from Fredericksburg VA to Rockville MD every day -- and that's 2 hours each way at 5am when there's no traffic.

There are companies around here who will pay your traffic fines if you're ticketed while speeding or in the HOV lane without the required number of people in your vehicle.  To encourage you to get to work on time.  :)

I actually enjoy my commute.  I go a long distance but there is very little traffic.  I just set the cruise control, go straight, and sing to the radio!  ;)   What would suck would be commuting into DC or any metro area.  Boston would be the worst -- I spent a week there in '98. Traffic in Boston makes DC seem like a deserted country road.  I can't imagine Philly would be any better than DC, but Baltimore isn't too bad.

I will definitely agree that urban commuter == unhappy camper.  But this rural commuter is well adjusted and a much-improved singer!

eric
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Chad Warner

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Re:Income tax one state to another
« Reply #7 on: July 18, 2003, 09:48:42 am »

Pardon this particular tangent but I would like others opinons on it.


I wonder if I work in Boston.  My company is about 17 miles northeast of Boston.  The window out of my office looks out onto the Concord River.  I wouldn't say it is a country setting but it certainly doesn't feel urban.  I drive about 30 miles to work and it takes about 30 minutes.  I am between Nashua and Boston almost directly, but closer to Nashua.  I have never in my life considered that Nashua was influenced by Boston, nor that Boston included Nashua as part of its suburbs.  It strikes me that most people who live in Nashua either work in Nashua or right around where I work, which I don't think of as Boston.

I guess I wasn't paying attention about Wyoming not having an income tax.  That is a good thing.  But as far as saying that Co is low while say, Ma is high, are we going to quibble about .7%?  Ma is 5.3% while Co is 4.6%.  They both have one which is not as good as not having one, especially for a non-resident.
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