i am an interstate truck driver and the state i live in does not have an income tax but the company i work for is in a state that does have an income tax do i have to pay income tax for the state that i live in or the state that i work in?? i was told that i do not have to pay tax in the state that i work in but can't find the name of the act that makes me exempt from that tax! HELP please!!!
2007-02-11 01:43:12 · 5 answers · asked by gob_001 1 in Business & Finance ➔ Taxes ➔ United States
Hey Bro..i haul all 48. The company i work for is in nebraska,and i claim Cali as my home state. I only pay state income for Cali.Your employer is responsible for any tax owed in the state the company employs in. since
stae income tax is taken out by the state you claim as your residence(or no Tax in your case),that is the only tax you pay.Each State is different. My advice to you is do what i did.Go to a tax prep-
arer who can sort it all out for you.Being a truck driver has its advantages when it comes to tax time.You will be amazed what you can write off as expenses.. As for the regs on the question..visit your Stae tax website and search under exemptions...Be Safe
2007-02-11 02:02:23 · answer #1 · answered by tpasenelli 4 · 0⤊ 0⤋
You need to pay tax to both, theoritcally. Your state does not have an income tax (Lets assume you live in FL and work in GA). You would need to file a Non resident Georgia return claiming the income. Because your state does not have an income tax you needn't file anything in FL. Normally you would file the non resident return and get credit for any taxes paid to the non resident state on your resident state income tax return. You would then pay the difference to the resident state.
Note that "portfolio" types of income (EG interest, dividends, capital gains) are sourced to your resident state. In other words the income is not taxable in the state you work in.
2007-02-11 01:51:01 · answer #2 · answered by smh60437 3 · 0⤊ 0⤋
If you drive in 2 or more states you are protected by Interstate Commerce and only subject to the state income tax of your residence.
2013-12-03 09:20:15 · answer #3 · answered by Michon 1 · 1⤊ 0⤋
That depends upon where you physically report for work. If you report for work in a state with an income tax you are considered to be working in that state and must pay income tax there.
If you take your rig home with you and are dispatched from home then you do not pay taxes in the state where the company operates out of.
2007-02-11 02:01:19 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 1⤋
The truth is you need to file a non-resident tax return in the state in which you have employment. That is considered your "tax home", even though you live in a state that has no income tax. It is considered a privilege tax. You have the privilege of working and they have the privilege of taxing you on your income from their state.
2007-02-11 01:52:13 · answer #5 · answered by Jessica M 4 · 1⤊ 0⤋