Home state tax Q

NedRN · Aug 31, 2016

Many payroll companies are not set up for multistate taxation so there is not much you can do about that. Your state taxes may not be as high as you think as they will give you a credit for taxes paid in other states. You should be able to file for an automatic filing extension in your state but you will have to pay interest from the April date on any taxes owed. You may also be able to set up a payment plan with them. Ask!

However, this question means you are not being fiscally responsible. Either you are living beyond your means, or paying off debts too rapidly. You need some cash on hand. What if you fall ill and cannot work?

I<3Endo · Aug 31, 2016

I was just wondering how to make installment payments vs. one lump sum each year. I guess I didn't word it properly. I have plenty of savings.

Thank you.

NedRN · Sep 1, 2016

Costs are less paying in full. Cash earns less interest in the bank than you will pay in interest to your state revenue service.

You can certainly make quarterly estimated tax payments to your state if you wish.

heinz57 · Sep 4, 2016

Your accountant or even Turbo tax can help you with this. It depends on how long you work outside of your home state, how much you make and how much your home state taxes and the rate. Some states tax all earnings. Depending on how much you make which is taxable, the taxes could be $1000 to $7000. Yes you can arrange for prepaid installments or you can pay the penalty and the tax when you file.

I<3Endo · Sep 4, 2016

I ended up getting an excellent answer from Joseph Smith on Travel Tax. Thank you though!

My question was never pertaining to NOT paying my taxes, it was how to pay them year round so I could avoid a lump sum come April. He explained how to make estimated payments ahead of time & some other stuff without making me feel like an idiot. Lol.

I highly recommend his website (traveltax.com) for newbies like myself.

Thanks again! í ½í¸Š