Know how to pay your taxes as locum.
Q: I have been on locum tenens assignments in various states this year. I am a resident of Virginia, with a permanent address there. How do I have to pay my state taxes? Do I pay estimated taxes to Virginia, or to the various states that I work in throughout the year?
Next, file your Virginia return, calculate the tax on all of the income you earned during the year, and then take a tax credit for the taxes you pay to the other states. By doing it this way, you will only pay taxes to Virginia on income earned within states that have no state income taxes or a lower rate than you are paying in Virginia.
Send your money management questions to firstname.lastname@example.org. Answers to our readers' questions were provided by Lawrence B. Keller, CFP, CLU, ChFC, founder of Physician Financial Services, a New-York based firm specializing in income protection and wealth accumulation strategies for physicians.