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Subject Author Date
Working in Kentucky and living in Texas ctsnair 01-28-2007
Posted by ctsnair on January 28, 2007, 6:13 pm
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 I work in Kentucky from Monday to Thursday for a client
based in Lentucky. On Thursday night I am back in Texas and
work for the same client on Friday from Home. For the stay
in Kentucky and travel and other expenses, the client
reimburses me. Am I supposed to pay Kentucky state tax or
can I avoid paying state tax considering Texas as my home
state (where I have an apartment). This working arrangement
is supposed to go beyond a year.

If my employer is supposed to with hold Kentucky state tax
from my salary, can I get it back at the year end claiming
that I am a resident of Texas (where there is no state tax).

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Posted by Bill Brown on January 29, 2007, 2:30 am
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 ctsn...@gmail.com wrote:

> I work in Kentucky from Monday to Thursday for a client
> based in Lentucky. On Thursday night I am back in Texas and
> work for the same client on Friday from Home. For the stay
> in Kentucky and travel and other expenses, the client
> reimburses me. Am I supposed to pay Kentucky state tax or
> can I avoid paying state tax considering Texas as my home
> state (where I have an apartment). This working arrangement
> is supposed to go beyond a year.
>
> If my employer is supposed to with hold Kentucky state tax
> from my salary, can I get it back at the year end claiming
> that I am a resident of Texas (where there is no state tax).

You worked in Kentucky so you will have to pay KY income
taxes whether you lived there or not.

The "not more than one year" rule deals with federal taxes
and the deductibility of transportation and living expenses
while away from your tax home.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Phil Marti on January 29, 2007, 2:30 am
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> I work in Kentucky from Monday to Thursday for a client
> based in Lentucky. On Thursday night I am back in Texas and
> work for the same client on Friday from Home. For the stay
> in Kentucky and travel and other expenses, the client
> reimburses me. Am I supposed to pay Kentucky state tax or
> can I avoid paying state tax considering Texas as my home
> state (where I have an apartment). This working arrangement
> is supposed to go beyond a year.
>
> If my employer is supposed to with hold Kentucky state tax
> from my salary, can I get it back at the year end claiming
> that I am a resident of Texas (where there is no state tax).

The Kentucky issue seems easy. Surely you owe Kentucky tax
on your Kentucky source income. Check the KY instructions
to see if you're considered a resident or nonresident.

Since TX has no income tax you'll get no credit on TX taxes
for the tax paid KY. If you itemize your Federal deductions
you'll be able to deduct either the KY income tax or the
sales tax.

You refer to both a "client" and and "employer." If you're
an employee, yes the employer should be withholding KY
income tax. If you're an independent contractor, you are
responsible for making estimated tax payments.

--
Phil Marti
Clarksburg, MD

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Dick Adams on January 29, 2007, 7:33 pm
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> I work in Kentucky from Monday to Thursday for a client
> based in Lentucky. On Thursday night I am back in Texas and
> work for the same client on Friday from Home. For the stay
> in Kentucky and travel and other expenses, the client
> reimburses me. Am I supposed to pay Kentucky state tax or
> can I avoid paying state tax considering Texas as my home
> state (where I have an apartment). This working arrangement
> is supposed to go beyond a year.
>
> If my employer is supposed to with hold Kentucky state tax
> from my salary, can I get it back at the year end claiming
> that I am a resident of Texas (where there is no state tax).

Are you an employee or an independent contractor? That is
the underlying issue in withholding.

Why not work in Texas and periodically fly to Kenttucky to
meet with the client?

Dick

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Seth Breidbart on January 30, 2007, 10:30 pm
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> I work in Kentucky from Monday to Thursday for a client
> based in Lentucky. On Thursday night I am back in Texas and
> work for the same client on Friday from Home.

For whose convenience is that? You probably owe Kentucky
taxes on those earnings as well as for the work you did in
Kentucky.

Seth

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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