Your income tax liability may change based on the state you’re in, but you should expect to file taxes for both states: one return as a resident for the state where you live and a separate return as a nonresident for the state where you work.

Do you pay income tax if you don’t work?

If you didn’t work at all during the year, you won’t have any earned income. However, you might have unearned income, such as interest and dividends from investments. The IRS sets minimum income levels that vary depending on your filing status. If your gross income is under the limit, you may have to file.

Why do I have to pay taxes if I don’t live in the US?

Yes, if you are a U.S. citizen or a resident alien living outside the United States, your worldwide income is subject to U.S. income tax, regardless of where you live. However, you may qualify for certain foreign earned income exclusions and/or foreign income tax credits.

Do you have to pay state income tax if you don’t work in a state?

So if you don’t happen to live in a state where there’s no income tax, you’ll have to pay tax to your home state on your income regardless of where you earned it. For example, you might live in Georgia, but you work in Florida, which doesn’t have a state income tax.

Do you pay state income tax based on where you lived?

State income tax is usually based on your state of residence. If your state of residence imposes an income tax, you must typically report all income you earned during the year and pay tax at the appropriate rate, regardless of where you earned the money.

What happens if you don’t pay your income tax?

Tax evaders may face jail time as it is against the law to dodge your responsibility. According to the Income Tax Act of 1967, “Failure (without reasonable excuse) to furnish an Income Tax Return Form” can result in fines of RM200 to RM2,000, imprisonment or both.

How does the location of an employer affect your state tax return?

The location of your employer’s corporate headquarters has no bearing on your state income taxes unless you actually performed work in that state. But if your employer accidentally withheld taxes for that state, you would have to file a nonresident tax return there to receive a refund.