[baggers719]

Hi all. I have recently moved to the USA and live with my wife in WA. However I have been offered a position in IN and will be traveling back and forth each week if I take it.

The question is how will filing taxes work for this since my wife currently pays her taxes in WA and obviously there is no state income tax there? Or what do you feel could be the best solution?

Thank you very much in advance.

[ebaines]

Since you'll be working in IN you must pay IN state income tax on your wages. If you keep WA as your legal residence (i.e, have a WA drivers license, register to vote in WA) then you would file a non-resident tax return with IN, and you would be taxed by IN only on your IN-based income. Make sure that your company uses your WA address as your home address for mailing out your W2.

[baggers719]

Just to clarify... since I have read a few different outcomes such as the residence state crediting or refunding or something to that nature on tax paid in the other state. Is this incorrect?

[ebaines]

Some states have reciprocal agreements so that commuters who live in one state and work in another only have to file with their resident state. But IN only has such an agreement with OH, PA, KY, MI and WI. Residents of all other states who work in IN must file a non-resident tax return.