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If you win money in another state do you pay that state's taxes as well as federal tax?
Wiki User
∙ 11y ago
Generally speaking, you owe income tax in both the state where you work and the state where you live. Since the state where you live does not have an income tax, you would owe tax in the state where you work only. You would file a non-resident return in the state where you work.
Sometimes individual pairs of states have negotiated reciprocal tax agreements exempting each other's residents from taxes on their wages. In all cases, both states have income taxes.
When you have to pay taxes to two different states on the same income, usually one of the states (usually the one where you live) lets you claim a credit for some or all of the taxes paid to the other state.
Wiki User
∙ 11y ago
Wiki User
∙ 15y agoIf you were a resident of the state, yes.
The state where you live (if it has an income tax) taxes your income from anywhere in the world. All other states tax income you earned from sources in those states.
So if, for example, you work in New York and live in New Jersey, then the income from your job will be taxable in both New York and New Jersey. (New Jersey will give you a credit for some of the taxes paid to New York.) All other income (investments, pension payments, interest on your bank accounts, etc) will be taxable in New Jersey.
Wiki User
∙ 11y agoYes, unless the other state does not have an income tax or it specifically exempts your winnings from its tax. For example, California exempts California state lottery winnings from its income tax.
You also pay tax in your state of residence at the time you receive (or are entitled to receive) the winnings. Generally, one of the states will allow a credit for the taxes paid to the other state.
Wiki User
∙ 11y agoYou claim your residency generally where you live, however, if you own property like a house in another state, you may claim
The state your home is located is where you pay your taxes as that is where you have a vested interest.
Wiki User
∙ 9y agoYes, if you work in two states, you will have to pay state taxes in both states. You could also be eligible for a state tax refund in both states.
Wiki User
∙ 14y agoyes. unfortunatly
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