Tax Information With A Mother's Touch
Published by Eva Rosenberg, MBA, EA
Volume 6, Issue 280 October 22, 2004
|
Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA Volume 6, Issue 280 October 22, 2004 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
 From: Tennessee Dear TaxMama, I live in Tennessee where there is no state income tax (but a very high sales tax). But I work in Kentucky which does have a state income tax. I have both KY state tax and city tax (from the city where I work) withheld from my paycheck. When I filed my 2003 taxes with Kentucky, I found that nonresidents only get a partial refund on the state taxes paid in. However, Kentucky has reciprocity laws with some other states that also have state income taxes, but not with Tennessee since we don't have a state income tax. My question is this: I pay a much higher sales tax for my state in lieu of an income tax. Is there any way for me to get a full refund of state taxes paid to Kentucky for upcoming years or this previous year? I ask because just recently an aquaintance informed me that he had the same problem in different states a few years back, and he was able to get a letter from the Department of Revenue in his home state that forced the other state to give him a refund. If there is a way to do this, how do I go about it? Thanks for you help, Lindsay TaxMama Replies Dear Lindsay, That's an interesting question. Typically, residents of states with no income taxes do not get reciprocity from states with taxes. Your friend brings up an interesting point. And if I were you, I would call Tennessee's Department of Revenue and ask them if they have any way to get you that same kind of letter - I've never heard of that, but that doesn't mean it isn't possible. As to the sales taxes, I am afraid that you won't get a break for them.There is no offset. Although, Kerry was talking about a sales tax credit in one of the debates. But I think that was when he was asked about a national sales tax. So don't hold your breath about that. On the other hand, have you talked to any local tax professionals who work with people whose jobs cross state lines? I would. If there is a way out, or any good tricks, one of them will be sure to know. Good luck! Best wishes, Eva Rosenberg, MBA, EA Taxmama.com iHelpMate.com  |
|
 |
|||||||||||||||||||||||||||||||||||||||||||||||||||
 |
 |
| Library of Congress - ISSN 1532-0790 Copyright © 2000-2007 - Eva Rosenberg |
|
Home | This Week's Issue | Articles by TaxMama | For Tax Pros Investment Secrets | IRS News | Smart Tax Moves | Critical Dates Using Money Wisely | Money Funnies & Inspiration | Because We Care About TaxMama | Our Privacy Policy | Legalese and Disclaimer | Press Page |
|
|
 |
Site design by Serenata Design. |
