if i buy a house in new mexico but work in texas will i be taxed twice?
broker said i would be taxed social security, federal, and medicare twice-is that true/?
- LittleBarbLv 71 decade agoFavorite Answer
Where will you live - - it's your PERMANENT PLACE OF ABODE that counts... if you are going to LIVE in New Mexico, you pay taxes from New Mexico and to the State of New Mexico... You will have to file a NON-RESIDENT STATE income tax return for Texas but you will get a CREDIT for the money from your income that was already paid to Texas (state withholding) you will take that credit on your New Mexico state tax return.... Texas withholds the money and when you file your state of texas return, you will file your NON RESIDENT RETURN and get a refund back from TEXAS on your income you made in Texas... On your New Mexico state tax return, you will file a RESIDENT RETURN, supplying your W-2 from your texas employer, and end up not paying any taxes because you end up min using out your Texas income and taxes that you already paid to Texas.... if this is too confusing... call the IRS...but you do NOT pay taxes in both states.... you basically pay them to the state you LIVE in but when you work in another state, you get a credit on your HOME STATE TAX RETURN for the money earned from the other state...Source(s): Former State Tax Auditor - - Retired.
- Anonymous1 decade ago
The broker is wrong. Federal, SS and medicare taxes are federal. theay are charged once on your income by the federal govt., regardless of what state you live in or work in.
- Genuine GuidanceLv 71 decade ago
I wouldn't take what the broker said, consult your accountant or tax preparer who knows what the law would be. I highly DOUBT you would be taxed twice just because you work in one state and live in another. I think the broker is full of it.