Home Page link  

telecommuting to CA - CA state tax liability?

 

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated)

 Post an article  get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
telecommuting to CA - CA state tax liability? kirthg0 03-16-2008
Posted by kirthg0 on March 16, 2008, 10:17 am
Please log in for more thread options
It seems like this should be a simple question, but searching around
the net I see a lot of conflicting information.

I live in Texas (own a house here and everything) and telecommute to a
company based in California. Do I have to pay CA state income tax?

My employer does not withhold any state income tax. Texas has no
state income tax.

Thanks!

--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Ron Hardin on March 16, 2008, 3:15 pm
Please log in for more thread options
kirthg0@hotmail.com wrote:
>
> It seems like this should be a simple question, but searching around
> the net I see a lot of conflicting information.
>
> I live in Texas (own a house here and everything) and telecommute to a
> company based in California. Do I have to pay CA state income tax?
>
> My employer does not withhold any state income tax. Texas has no
> state income tax.
>
> Thanks!

I telecommuted to NJ from Ohio, and the company sought a temp employer
for me so I wouldn't be an independent contractor ; their first choice
for temp agency rejected itself because they had no license in Ohio;
so another was picked instead.

Which indicates, to me, that the state you work in, rules.
--
rhhardin@mindspring.com

On the internet, nobody knows you're a jerk.

--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by removeps-groups@yahoo.com on March 17, 2008, 1:05 pm
Please log in for more thread options
On Mar 16, 7:17 am, kirt...@hotmail.com wrote:

> I live in Texas (own a house here and everything) and telecommute to a
> company based in California. Do I have to pay CA state income tax?
>
> My employer does not withhold any state income tax. Texas has no
> state income tax.

The general rule is that you have to pay California tax on your
California source income. If the company operates in many states and/
or countries, they somehow get around this rule. Maybe the company is
registered in Nevada or something. Not sure how it works. And to
which state were SDI (disability) and FUTA (unemployment) paid?

--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by D. Stussy on March 17, 2008, 5:33 pm
Please log in for more thread options
> On Mar 16, 7:17 am, kirt...@hotmail.com wrote:
>
> > I live in Texas (own a house here and everything) and telecommute to a
> > company based in California. Do I have to pay CA state income tax?
> >
> > My employer does not withhold any state income tax. Texas has no
> > state income tax.
>
> The general rule is that you have to pay California tax on your
> California source income. If the company operates in many states and/
> or countries, they somehow get around this rule. Maybe the company is
> registered in Nevada or something. Not sure how it works. And to
> which state were SDI (disability) and FUTA (unemployment) paid?

If you NEVER step into the state, then there's no state taxes. However, you
(and your employer) still subject to both income and payroll taxes in the
state where you live.

If you visit the employer's office in California, even once a year for a
day, you then become subject to the state's taxes. Alot of sports players
have been hit with this for their "away from home" games. Whether you're
hit just on the income for the time that you're in California or all of it
may depend on facts you haven't stated.

--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by kirthg0 on March 17, 2008, 5:49 pm
Please log in for more thread options
>
>
> > On Mar 16, 7:17 am, kirt...@hotmail.com wrote:
>
> > > I live in Texas (own a house here and everything) and telecommute to a
> > > company based in California. Do I have to pay CA state income tax?
>
> > > My employer does not withhold any state income tax. Texas has no
> > > state income tax.
>
> > The general rule is that you have to pay California tax on your
> > California source income. If the company operates in many states and/
> > or countries, they somehow get around this rule. Maybe the company is
> > registered in Nevada or something. Not sure how it works. And to
> > which state were SDI (disability) and FUTA (unemployment) paid?
>
> If you NEVER step into the state, then there's no state taxes. However, you
> (and your employer) still subject to both income and payroll taxes in the
> state where you live.
>
> If you visit the employer's office in California, even once a year for a
> day, you then become subject to the state's taxes. Alot of sports players
> have been hit with this for their "away from home" games. Whether you're
> hit just on the income for the time that you're in California or all of it
> may depend on facts you haven't stated.
>
> --
> << ------------------------------------------------------- >>
> << 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 atwww.asktax.org. >>
> << Copyright (2007) - All rights reserved. >>
> << ------------------------------------------------------- >>

Interesting. I have visited my employer in CA for short periods, is
the tax somehow prorated as a fraction of the year? Which other facts
are used to determine this?

In response to the question from an earlier post, I don't think my
employer withheld anything for SDI or FUTA.

Thanks for the responses.

--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Similar ThreadsPosted
Former MA employee now living in CT and telecommuting - state tax q November 29, 2007, 3:56 pm
tax liability February 15, 2008, 1:21 pm
Tax Preparer Liability January 6, 2007, 12:21 am
Liability of LLC Members June 6, 2007, 4:39 pm
changed UTMA to 529 - tax liability? February 5, 2008, 1:33 pm
Hi all, How to estimate Tax liability for tax extension? April 14, 2008, 10:47 am
401K Withdrawal rollover tax liability April 25, 2007, 3:58 am
Moving 401k from old to new company - tax liability?? February 12, 2008, 1:49 pm
Is personal liability insurance deductible? March 26, 2008, 7:04 am
How does accountant's liability insurance work? September 4, 2008, 2:25 pm

Contact Us | Privacy Policy
This site is not affiliated with Intuit - makers of Quickbooks and Quicken software
This site is not affiliated with Sage Software - makers of Peachtree accounting software
XML SitemapXML Sitemap