My permanent residence is in Ohio, but I'm working in CA for 3 months. Should CA tax be taken out?

Question

Okay, so my permanent residence is in Ohio, but I'm doing a 3-month internship in CA. I got my first check today and they took out CA tax, but not Ohio. I was sure to put my Ohio address on my W4, but HR changed it (without my knowing I might add) to the address of the apartment they are providing me.

In the past I have lived in Ohio and worked in WV. I always paid OH tax not WV. Moreover, I had a job in PA, and paid OH tax, not PA. So, since I am a resident of Ohio, I'm thinking OH taxes need to be taken out, not CA.

Also, did HR have a right to change my address without asking me? I signed my name to that form, and they changed what I wrote without consulting me... that doesn't seem legal.

Answer 1

Yes and you won't have Ohio tax taken out during that time. You must pay taxes in the state you are working in.

Answer 2

HR is correct on withholding CA tax. The other states you spoke of all have recriprocial agreements not to tax each other residents which is common in border states.

Don't Fret -
You'll need to file a CA non resident income tax return and pay tax to CA. You will receive a credit on your Ohio return for taxes paid to CA.

Residence is determined by your domicile not your address. Just be sure to save things that prove your domicile is in Ohio in case the question ever comes up.

BTW linlyons is TOTALLY incorrect on the IRA issue. CA used to do that but was preempted by Federal Law. The Supreme Court decided the Issue in Davis v. United states if I remember correctly.

Answer 3

honey, you pay state tax in the state you are working,federal tax in the home state at your home address.