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3 - 3 1 State Income Taxes: Here, There and Everywhere. Jack and Erin graduey decided their MBAs and took high paying jobs in New
State Income Taxes: Here, There and Everywhere. Jack and Erin graduey decided their MBAs and took high paying jobs in New York City. Howent in New Jersey. they could not afford to live in New York and got an apart
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Jack got his first paycheck from his new job and he was confused. His employer withheld New York taxes even though he and his wife were residents of New Jersey.
a Must he pay income taxes to both states even though he lives in one and works in the other? Explain.
b While Erin works in New York City, the headquarters of the company for whom she works is in Connecticut. Must she file a Connecticut tax return?
c Jack and Erin also received interest and dividends from their investments. Will they have to pay New York taxes on that income?
d Assume Jack travels to Pennsylvania to consult with a client. Must he file an Pennsylvania income tax return?
e Same as d except Jack travels to a state that does not have an income tax eg Arizona
f Comment on taxes between "reciprocal" states.
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