Asked in Tax Law for Tennessee

Q: I reside and work in the state of Tennessee. The company that i work for, headquarters is in Kentucky, yet my check come

From Virginia. Hows this work? Filing taxes.

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1 Lawyer Answer
James L. Arrasmith
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Answered
  • Tax Law Lawyer
  • Sacramento, CA

A: In your situation, working in Tennessee for a company headquartered in Kentucky, with paychecks issued from Virginia, can create some tax complexities. Tennessee is known for having no state income tax on wages, while Kentucky and Virginia both have their own state income tax rules.

Typically, you would need to file a state income tax return in the state where you physically work, which is Tennessee in your case. Since Tennessee doesn't have a state income tax on wages, you may not owe any state income tax there. However, you may still need to file state income tax returns in Kentucky and Virginia due to your company's headquarters and paycheck location.

Kentucky may require you to file a non-resident tax return because your employer is based there. Virginia may also require a non-resident tax return because your paychecks are issued from there. These non-resident returns typically account for the income you earned in those states. You'll want to ensure that you're accurately reporting your income and consulting with a tax professional if needed to navigate any specific tax laws or credits that may apply.

In summary, your tax obligations could involve filing in multiple states, including Tennessee, Kentucky, and Virginia, based on your work location and where your paychecks originate. It's crucial to understand the tax laws in each state and consider seeking professional advice to ensure compliance and minimize your tax liability.

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