I just acquired a job in CT, but I live in MA. I was told I will have to file for taxes in both states. I am wondering if this is true. Previously, I live in MD and I worked in VA. During this time I did not have to file in VA and MD, so to hear that I would need to file in both states is a little odd to me. Can someone shed some light on this. Thanks.

AtlantaTaxExpert

Some states have agreements that allow employees to file in only one state. The states then coordinate and share the tax revenue.

Such agreements are the exception, not the rule.

Most of the time, if you work in one state and live in another, you must file tax returns in both states. You pay the taxes in the stare in which you work, then claim a credit on your home state tax return for the taxes paid to avoid double taxation.

While the credit is not always dollar-for-dollar, I know of no state that does not allow some type of credit or deduction for taxes paid by their cititzens to other states.