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    mechwiz's Avatar
    mechwiz Posts: 2, Reputation: 1
    New Member
     
    #1

    Sep 27, 2008, 09:32 AM
    Taxes in 2 states
    I live in Idaho and the company I work for is based in Utah. I have not worked in Utah but every time I get my pay stub there are state taxes pulled out for both Idaho and Utah is this legal
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #2

    Sep 27, 2008, 12:37 PM

    If you do not work in Utah, your income is not subject to Utah state taxes. Ask your employer to stop withholding Utah taxes.

    Your income is subject to Idaho taxes--the place where you work.
    Read: Your U.S. Tax Return: Working or Living in Two or More states
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #3

    Sep 29, 2008, 08:53 AM
    Redundant post; see below for my answer.

    MechWiz:

    Because you live and work in Idaho, your only tax liability is to Idaho.

    You owe ZERO taxes to the state of Utah. The fact that your company is based in Utah is completely irrelevant. NO state can tax income of anyone who does not either live or work in that state; this position was decided in federal tax court decades ago.

    Contact your employer and tell him to stop withholding Utahg state taxes and ask that the taxes already withheld be refunded to you. If your employer balks at doing this, ask them to contact the Utah state tax department for confirmation of what I said above.

    If they cannot refund the money, you will need to file a Utah state tax return and report ZERO Utah-based income to get a complete refund. Attach a copy of the Idaho state tax return to confirm that you are paying taxes to Idaho. Further, attaching a memo from your employer to the tax return packet stating that you neither worked nor lived in Utah should avoid any confusion.

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