Do I pay taxes to both Georgia and Alabama?

When you say live in Alabama... you drive across the border every day to your home?

If you commute from your home in AL to work in GA, then yes - you have to file with both states. You will have to pay GA on the wages you earn in GA, filing a non-resident tax return. Then you determine your AL state income tax based on your entire encome, and take a credit for the amount of taxes you had to pay GA. If you have little to no other income besides wages, you may end up owing AL little or nothing in state income tax, but you still have to file.

When you say live in Alabama... you drive across the border every day to your home?
Yes, Alabama to Georgia and back every day

Quite common in the Columbus and LaGrange area as the states are just across the river. Lot's of AL and GA people work in the KIA and Hyundai plants and for the suppliers.

While this may appear complex to a layman, any competent tax preparer can prepare both the AL and GA returns and claim the cited tax credit with little problem.