Payroll Withholding Tax

Assuming 2 people make the same gross pay $100000/year , same dependent, etc....I mean everything the same.
However, one lives is in a State that has State tax and the other live in another state that does not have state tax.

Obviously, the one that does not pay state tax will clear more than the other.
Well, at the end of the year when they file for taxes, would the one that does not pay state tax have to pay back IRS more money than the one that has paid state taxes regularly off his paycheck ?

I hope the question is clear.

Thank you
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Let me make sure I understand what you're asking. Suppose the following:
Person A makes $100,000/yr. He has $10,000 withheld in state taxes.
Person B makes $100,000/yr. She has $0 withheld in state taxes.
All other personal details are the same between them.

You're asking if they both will pay the same federal income tax amount, since the $10,000 was taken out on the state level and not the federal level.

If so, the answer is no. They would both have the same Adjusted Gross Income, but person A would want to itemize their deductions because he would be able to claim the $10,000 state taxes as a deduction on Schedule A, reducing his taxable income on his federal return.

When all is said and done, however, person B would still have more spendable income because the amount she owes on that extra $10,000 would be far less than the $10k itself.


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I pay no taxes but do have to file. My state tax, if any, is based on my Federal taxable income.
If my Federal taxable income resulted in a federal tax owed of $1000, that would not affect the amount of state tax I'd owe.
My state tax would still be based on the Federal taxable income that my federal tax was calculated based upon.
So, if my state had no state tax and I woed the federal $1000 my income would be reduced be the $1000 in federal taxes.
But, my state does have taxes so my income would be reduced by the $1000 I'd pay to the federal tax and by the tax amount owed to the state.
If my spouse had the exact same income and other data and we both owed $1000 federal tax, then we would both owe state tax too, and thus both taxes "federal and state" would be subtracted from our before tax income.
jskfanAuthor Commented:
Thank you
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