State Income Taxes

Discussion in 'Taxes and Accounting' started by Vinny1, Mar 16, 2007.

  1. Does anyone know if states cap the amount that you have to pay on state income taxes or is it just like federal income taxes where there is no limit to how much you can pay?
  2. HotTip


    Taxes vary by state, but I would say most if not all don't cap income.
  3. One way to avoid state income tax is to move to a state that doesn't have it; Nevada, Florida et al. You'll still get soaked some other way.
  4. How much time do you have to spend during the year in an income tax free state like FL or TX to not have to pay any state income taxes at all? I would still like to keep my home in GA (which has state income taxes), but avoid paying state income taxes to GA.
  5. (I'm not a CPA)--------??---------probably atleast 183 days out of the year. (184 days during a leap year) You might be at risk of having to pay partial taxes if it appears you're trying to dodge taxes in the taxable state.
  6. You better be prepared to cover your tracks taking this route. Many states have very far reaching revenue arms.

    Not sure about GA, but I had friend in CA who legitimately lived in NV for the majority part of a year. State of CA jumped him... his DL was CA, he had newspaper delivery to his CA home (where his spouse was), he received mail in his name in CA, health insurance indicated CA doctors. He had to pay up... he was deemed a CA resident regardless of time spent in neighboring state.

    Osorico :)