Tuesday, December 14, 2010

I live in Washington but work in Idaho. I want to know how the taxes work.


I live in Washington but work in Idaho. I want to know how the taxes work.?
I purchased some large ticket items in Washington (8.6% sales tax) this year and I'd like to deduct them through the sales tax deduction. However, now that I took a job in Idaho, am I going to be better off taking the Idaho state income tax deduction on my Federal return? Am I right in believing that I can't do both?
United States - 2 Answers
Random Answers, Critics, Comments, Opinions :
1 :
You're correct, you cannot do both. Figure the deduction both ways and take the one that works out best for you.
2 :
Actually, you're going to have to file two state returns this year, your Washington State return, as well as a non-resident Idaho State return because you're earning wages there. So, you need to claim your large purchase in the state that you reside since that's how the tax law works anyway.