My fiance works offshore of LA, but we live in MS. What % of his paycheck should be paid to MS state taxes?

Answer 1

All of his income working offshore is taxable to MS. His employer may or may not withhold taxes to MS (probably he will not). Figure a maximum of 5% to MS. He will file a MS resident return and declare all of the offshore income.

If the employer withholds taxes to another state (possibly LA if the company is based in LA and has not filed the paperwork to exempt withholding for nonresidents), then the employee will file a nonresident LA tax return and be able to get a refund of those taxes withheld that have been paid to MS.

If the employer has not withheld LA taxes then the taxpayer will not be required to file a LA tax return.

Answer 2

It doesn't matter where the company is located. As he's a MS resident, 100% of his income is taxable by MS. Go here for some handy paycheck estimators: http://www.paycheckcity.com

For the responder below: Since he is working offshore he is NOT working in LA and therefore LA cannot tax his income.

Answer 3

Depends on where the company is located that is cutting the check. If the company is in MS then he has to pay MS taxes not LA state taxes. However, the company still has to pay Work Comp and Unemployment taxes on any employee working out of state. They have to pay it for each state they work in plus the state they are based in.

At least thats how it works in Montana, Idaho and Washington.

Answer 4

well both of the first answers are good neither is correct. If he works in LA then he will owe tax in LA...however, since you both live in MS then you also owe tax there from money even though it is from outside of the state, but you will get a credit for La tax paid on your MS tax.