Quote:
Originally Posted by OrangeBlossomBaby
Most states with state income tax require you to pay income tax on any income you earned while working in that state. Even if you don't live in that state.
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Same as in California, and New York, and Louisiana, Kentucky, etc. etc. They ALL make you pay income tax, if you WORK in those states, regardless of where you live. The state you live in might also make you pay income tax, because you have an income, while living in that state. Different states have different rules about that.
This isn't news. It's not a recent change.
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Fact Check: Partially correct.
If you are earning ACTIVE income (i.e. - W-2 income or 10-99 income), then yes, those states will tax you. Imagine playing pro sports and "working" in a different state every week!
However, if you are receiving an earned pension from, sayyyyy California, then the state does NOT tax that even though you earned it by your labors and its investment gains occurring in California if you do not currently live in that state.
Same goes if you earned a California pension but retired to the Philippines. Not uncommon, actually. Lots of healthcare folks working in Los Angeles. No state or federal income tax is owed, due, collected, or held back.