I live in California full time but do some part time work for a company based in Ohio. I never travel to Ohio, all the work is done via the Internet.
Am I responsible for State Income Tax in both states? Just California? Or just Ohio? I
2007-02-26 06:36:28 · 6 answers · asked by Matthew T 1 in Business & Finance ➔ Taxes ➔ United States
Many companies are headquartered in states unlike in which you reside or live. The company in Ohio is responsible to withhold California State Income Taxes. Your W-2
should reflect CA state withholding. If there is Ohio withholding on your W-2 while you were a full-time resident in California, the company made a mistake. They are only required to withhold if you were physically working in that state.
If you worked entirely in CA, and you have Ohio withholding, report as a Resident of California, and as a Non-Resident in Ohio. Make sure you answer all of the questions on the Ohio return that you were physically not in the state. All of your withholding will be refunded to you.
If you worked on a 1099 basis (no withholding), only file in the state in which you live,
California, as a Full-Time Resident. You may have to prove your Residency to the State of Ohio, if you do indeed get a letter from them. Once you have proved your Residency in the State of California, Ohio will drop the matter.
2007-02-26 06:49:46 · answer #1 · answered by bold4bs 4 · 0⤊ 1⤋
Your W-2 should show CA tax, not Ohio. If it shows Ohio it is wrong and you need to get it fixed. We have see this at times on our client's W-2s.
You are responsible for the state taxes in your home state. It doesn't matter that the company is located in Ohio.
Good luck from a fellow Californian!
2007-02-26 06:43:23 · answer #2 · answered by Dizney 5 · 0⤊ 0⤋
You are responsible for taxes in the state in which the work is performed. If you were in California when the services were performed, you are liable for California taxes regardless of the state of your firm.
2007-02-26 06:49:01 · answer #3 · answered by Austin 1 · 0⤊ 0⤋
Both places. You have to file a federal return. Then a California resident return. Then an Ohio non-resident return. Have fun!
2007-02-26 06:44:36 · answer #4 · answered by Anonymous · 0⤊ 1⤋
You pay tax where you produce your income. In this case it seems to me that you will have to pay State Taxes in California.
2007-02-26 06:47:04 · answer #5 · answered by publiof 1 · 0⤊ 0⤋
Probably just California, but you need to contact the Franchise Tax Board (www.ftb.ca.gov for CA) and ask them.
2007-02-26 06:41:52 · answer #6 · answered by Wildernessguy 4 · 0⤊ 1⤋