State taxes-Live in TN/work in GA? (how much, income)

[akbrindley]

Patrick1853,
Hello sir, we were wondering if you could help us out? You had said, you live in TN and work in AL, those are our same plans. My husband will be working in Huntsville, AL and we are trying to find places in southern middle Tn to live but are having no success. We are looking to rent at first until we get familiar w/the area. Would like to stay $1000/or under for rent, need 3-4bdrm/2bth in a smaller town(5-20,000) w/good schools, have 4 kids, junior/high school ages. Don't want out in the "boondocks" but don't want in the city either, country setting w/close by shopping, don't mind driving a little. We were looking in the counties of,Franklin,Lincoln,Giles areas, could you be of any assistance to us of who to go to, to find rental homes? It would be greatly appreciated for any help you can give. We move in 6 weeks. Thanks for your time :-).

[lookin4mayberry]

Fayetteville, Tn sounds like the perfect place you are looking for. I live in Chattanooga but hunt in Fayetteville. Great little town. Very friendly people and some good home cooking as well. Gotta try Marvin's Restaurant. Awesome.

[klangl]

if you live or work in GA then you have to pay GA taxes. Tennesse has no state tax but housing in GA is far cheaper. Also the sales tax in TN is 9.25 and in GA its 7

[cnrhood]

I choose to live and work in Georgia because of the excellent school system. If children weren't a factor, I'd probably be in Tennessee.
My previous employer had six medical offices located in different areas of North Georgia and Chattanooga. If an employee lived in Tennessee, the bookkeeper was able to file their taxes out of the main Tennessee office and if they lived in Georgia, they were filed as a Georgia employee. This was totally legal because the employees rotated shifts in different locations and the company paid taxes to each state. You might want to check with your employer to see if that's an option suitable for your situation.
Good luck! I love living in this area...small enough without being too country and big enough without getting claustrophobic!!!

[trafdeputy]

I was curious about government employee's and large corporations that are based in one state but employees cover others. An example would be a corporation based in Chicago, but has employee's across the south. I would be living in Tn, my corporate offices are in Atlanta, but my paycheck comes from Chicago? Would I be required to pay Georgia state taxes?

[trafdeputy]

It would be somewhat like a salesman covering several states, but living in one and being paid out of another.

[An Einnseanair]

Everything is based on the state where you predominantly work and where you live. My company's corporate offices are in Huntsville, AL, but I live in TN and work out of our TN office. My income is reported to TN, not to AL.

If you live in one state and work in another, then it depends on if the states have a reciprocal agreement. To the best of my knowledge TN and GA do NOT have such agreement.

If you work out of your corporate offices in Atlanta and go there regularly, then arguably you are using GA state resources and would be responsible for GA taxes. If you have a satellite or field office in TN, or work out of your home, then everything would be based on TN. What address is on your business cards?

[Rick26]

Here's what the GA Dept. of Revenue has to say...
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Nonresidents who work in Georgia or receive income from Georgia sources and are required to file a Federal income tax return are required to file a Georgia Form 500 Individual Income Tax Return. Some examples of Georgia source income are wages, Georgia lottery winnings, income from flow through entities (s-corporations, partnerships, LLCs, trusts, and estates), rents, etc. If you are a legal resident of another state, you are not required to file a Georgia income tax return if your only activity for financial gain or profit in Georgia consists of performing services in Georgia for an employer as an employee when the compensation for services performed does not exceed the lesser of five percent of the wages in all places or $5,000. A full explanation of how to compute the tax for non-residents is provided in the instruction booklet.
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Granted, this doesn't give you a definitive answer but it sounds to me that if your work doesn't require you to be in GA (except, maybe to visit the Atlanta office), then you wouldn't be required to report income to GA. You might want to get the booklet referred to above and see if it is any clearer (which I doubt).

---Rick26

[trafdeputy]

lol thanks

[rhp1462]

I lived in TN and worked in GA. I did not pay TN state income taxes but had to pay GA taxes.