State taxes-Live in TN/work in GA? (Chattanooga: fit in, high income)

[Bluebird9872]

My husband and I are planning a move to Chattanooga in the very near future. The company he works for has locations both in TN and northern GA. The question has come up on if we live in TN and he works in GA, do we pay GA state income tax or not? I have seen it answered both ways and would like to get a true answer from someone who actually lives it.

[Mary77]

I was hoping someone would answer this post. I've been wondering this also. I would guess that the general rule would be that you pay "income" tax in the state were you earn the income regardless of where you live.

[financelife]

Income tax is based on where you reside. The company I used to work for had employees all across the U.S. and we withheld payroll taxes based on their states of residence.

[patrick1853]

I'm not sure how Georgia does it, but in my case living in Tennessee and working in Alabama, I am required to pay Alabama income taxes every year. I file on an Alabama 40NR (non resident).

Here's the Georgia department of revenue's answer.

Georgia Department of Revenue
"
What are the filing requirements for a nonresident who works in Georgia and/or has other Georgia source income?

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 income tax return. Some examples of Georgia source income are wages, Georgia lottery winnings, income from flow through entities (s-corporations, partnerships, LLC’s, 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 income received in all places during the taxable year or $5,000."

[Bluebird9872]

Patrick...thank you! That does answer the question very clearly.

[Doc. T.]

Patrick, well researched and objective - nice job.

[ATL8995]

I live in AL but work in GA. My employer had me to submit an A-4 form (AL) and they are withholding AL state tax. Should I be required to pay AL state tax or should I pay GA state tax?

[dasmarian]

I concur with Patrick. I was working in Dalton while living in Chattanooga, and I was required to pay state tax in GA.

[drfranklin]

I was in just this situation several years ago - lived in Chattanooga and worked in GA.

THE STATE OF GA DOES NOT CARE WHERE YOU LIVE - IF YOU WORK IN GA, YOU WILL PAY GA STATE INCOME TAX.

As to the debate as to where to live: TN has no state income tax and no ad valorem (car tag) taxes ($30 to register a NEW car!) - of course, GA has both taxes - this should be a HUGE influence with anybody making a decent income (especially for those making a high income) - additionally, property taxes are about the same.

[MemeTax]

Your income tax is based off of where you WORK unless there is a reciprocol aggreement between the state that you live in and the state that you work in. If there is an agreement you are taxed according to what is in the aggreement.