I am assigned and complete my work entirely through the Internet. My paychecks come out of Washington D.C. and I receive a 1099 form at the end of the year. I make estimated tax payments. I was told by one of the large tax places that I have no state tax liability. I just don't see how I don't owe Washington D.C. money. Any help would be appreciated!
2007-03-01 02:00:14 · 3 answers · asked by Jen K 1 in Business & Finance ➔ Taxes ➔ United States
The state you reside in is the state you owe any taxes to if any at all, not the DC or state in which you work. I lived in Alexandria and worked in DC and had to pay state taxes to Virginia. I would only accept such a statement from a tax place that puts it in writing including a hold harmless clause for you. In the event, your state of residence sends you a tax bill, you may still owe taxes but with supporting document, you should not realize any penalties. If the tax firm is ethical, it will put such in writing. Verbal is of no help or defense.
2007-03-01 02:06:57 · answer #1 · answered by Joseph H 4 · 1⤊ 0⤋
State tax liability would depend on where you live. Many if not most states would want their cut if you live in the state.
2007-03-01 10:21:59 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
You're based in that state and you're a wage earner...I bet you do owe taxes. Many states don't tax internets SALES that different from wages.
2007-03-01 02:05:23 · answer #3 · answered by fdm215 7 · 0⤊ 0⤋