John, a professor and his wife, Mary, a nurse, residence of Georgia both work in Alabama....

John, a professor and his wife, Mary, a nurse, residence of Georgia both work in Alabama. They return to Georgia on weekends where they have their permanent homes. Identify and discuss the sources of tax law applicable to John and Mary taking into account the fact that they are operating in more than one U.S. state (Georgia and Alabama).

Can you please help to elaborate a statement regarding this case of taxes.

Expert Solution

If you work in one state and live in another, taxes are not be straightforward. If you earn income in one state while living in another, you will need to file a tax return in your resident state reporting all income you earn, no matter the location. You would also be required to file a state tax return in your state of employment.

So in the given case John and Mary would file their Federal Income Tax Return from the State of Georgia. And they would need to file State Tax Returns both in Georgia and Alabama.

jeff jeffy answered 2 years ago

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