Work in one state, live in another...

State-wise, much depends on the states involved. For nearly a decade, I worked in New Jersey but lived across the river in Pennsylvania. Those two states had a 'tax treaty' and my withholding went straight to PA and I only had to file in PA.

At the same time, NJ and New York State did not have such an agreement. Friends who worked in NY but lived in NJ had to file in both states, but could offset their taxes paid to one against the taxes due the other. Didn't cost them double, but the hassle was considerable. Only people who made out were the tax guys.
 
Nark said:
After being stationed there (San Diego), I subsequently left and moved north to Alaska. With my cali registered car. I did everything properly, by de-registering it with the DMV and registering with AK.

I get a letter ~4 months later stating I owe registration fee to CA because I didn't renew it. uhhh DF's. It was worth the effort to wait on hold and ass-chew the DMV person and get the proper form. I had to "prove" I registered out of state. On the proper form, I stated "no I don't, that's your job."

Never heard anything back.

Sacramento, San Fransisco and much of LA need to fall off into the ocean.
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Got the same thing from MN after moving they're just as bad as Cali with taxes.
 
sorrygottarunway said:
I still keep my "tax address" at my parent's place which avoids NYC/NY taxes. I think you can make your address anything you want as long as you go to collect mail there every so often.
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That's a really really dumb idea. My good friends Dad was one of these guys, it was not a fun thing to witness. He was lucky he was eligible to retire from NWA and had a very interesting career afterwards having to fly very undesirable contract jobs all over the world. Coincidently he now lives in the pilot tax ghetto across the river from PDX....

Hey look, this guy lived at his parents too.

http://jacksonville.com/tu-online/apnews/stories/021204/D80LQVTG0.shtml

http://usatoday30.usatoday.com/travel/news/2003/2003-03-26-nwa-pilot.htm
 
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Maximillian_Jenius said:
What if as a commuter, you wanted to get a small studio or one bedroom apartment. How would that work, tax wise. And let's add in one more wrinkle. You bought a small beater car, to get around in while in DTW?
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States have residency requirements. Typically a commuter won't meet them and as long as you don't draw attention to yourself like putting your kids in public school there, registering to vote, etc. you're fine. Many people own multiple properties.
 
ClarkGriswold said:
That's a really really dumb idea. My good friends Dad was one of these guys, it was not a fun thing to witness. He was lucky he was eligible to retire from NWA and had a very interesting career afterwards having to fly very undesirable contract jobs all over the world. Coincidently he now lives in the pilot tax ghetto across the river from PDX....

Hey look, this guy lived at his parents too.

http://jacksonville.com/tu-online/apnews/stories/021204/D80LQVTG0.shtml

http://usatoday30.usatoday.com/travel/news/2003/2003-03-26-nwa-pilot.htm
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Well in my case it's more defensible... and it's basically to keep paperwork low (i had to file Hawaii, Connecticut, and Georgia and i just don't have the time to deal.) I'm really not a resident anywhere, don't own property- but my residence at my tax address is because I'm there a lot, have my doctors, voting registration, drivers license. I'm more "there" than where I'm renting an apartment. And when you move every 4 years... I just try to keep it simple. When I put down roots and buy real estate, I'll dedicate my residence to whatever state that may be.
 
sorrygottarunway said:
Well in my case it's more defensible... and it's basically to keep paperwork low (i had to file Hawaii, Connecticut, and Georgia and i just don't have the time to deal.) I'm really not a resident anywhere, don't own property- but my residence at my tax address is because I'm there a lot, have my doctors, voting registration, drivers license. I'm more "there" than where I'm renting an apartment. And when you move every 4 years... I just try to keep it simple. When I put down roots and buy real estate, I'll dedicate my residence to whatever state that may be.
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Having a lease and utilities in your name might make it tough for that argument to stick though.
 
CFI A&P said:
Bingo, the jock tax. This is a big detail that much of the public doesn't think of. "Breaking news: Hingle McCringleberry just signed a record breaking 4 year contract worth $50M!" and more than half of it is out the window in taxes. It still isn't a bad deal, but not as glamorous as the headline reads.


Sent from my Startac using Tapatalk.
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I believe most athletes get paid by the game, with that salary number prorated over the number of games in a season. So they don't file all their income in every state, just the income they earn in each state.
 
wheelsup said:
States have residency requirements. Typically a commuter won't meet them and as long as you don't draw attention to yourself like putting your kids in public school there, registering to vote, etc. you're fine. Many people own multiple properties.
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It seems like all these stories of people getting hauled to court over it too had the pretty common theme of claiming to live in states that don't have an income tax. Kinda doesn't really pass the smell test for not being fraud vs the "well I mean, I really don't technically live here" argument, which can be valid.
 
sorrygottarunway said:
I still keep my "tax address" at my parent's place which avoids NYC/NY taxes. I think you can make your address anything you want as long as you go to collect mail there every so often.
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gotWXdagain said:
I believe most athletes get paid by the game, with that salary number prorated over the number of games in a season. So they don't file all their income in every state, just the income they earn in each state.
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That's correct, and at least in the NFL (maybe others and probably with some exceptions) the off season is unpaid. Hingle McCringleberry is only paid pro-rated over the 17 game season, give or take the pre & post season games plus roster bonuses or other incentives.
 
NovemberEcho said:
everyone so upset but why do y'all think so many corporations have their HQ at an empty storefront in Delaware? It's not cause of the nice views of downtown Wilmington.
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I suspect those companies are in a better position to legally fight an IRS audit or bribe the IRS than most individual pilots.
 
Yakob said:
I suspect those companies are in a better position to legally fight an IRS audit or bribe the IRS than most individual pilots.
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Not to get political, but this is one of the great inequities of the current American system. The rules fundamentally aren't the same for the "little guy" as they are for the big guy. While on "paper" they're the same, issues like this prove to me they are not.
 
ppragman said:
Not to get political, but this is one of the great inequities of the current American system. The rules fundamentally aren't the same for the "little guy" as they are for the big guy. While on "paper" they're the same, issues like this prove to me they are not.
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As explained to me by an IRS agent I know:

When you owe a few hundred or thousand, you have a debtor. When you owe millions, you have a business partner.
 
CFI A&P said:
That's correct, and at least in the NFL (maybe others and probably with some exceptions) the off season is unpaid. Hingle McCringleberry is only paid pro-rated over the 17 game season, give or take the pre & post season games plus roster bonuses or other incentives.
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Also in salary capped leagues it gets more complicated, I'll use the NHL as an example:

The salary cap formula is equal to 50% of the total Hockey Related Revenue (TV contracts, butts in seats, the like) divided by the number of teams, which is 31 for next season. The way they actually calculate it is usually around Feb or March the head of the NHLPA (union) meeds with the NHL board of governors and looks at the current revenue and projected revenue for the remainder of the current season, then based on that and the economy they project what revenue will be for the next season, and base the next season's cap on that number.

But what happens if revenue falls below or above that number?

Well if it's above, it's pretty simple, the NHLPA can apply the difference to the next season's cap as an "accelerator" option. Now if it goes below, its where it hits the players- and this was one of the major points of contention in the last lockout. The NHL/NHLPA collective bargaining agreement includes an Escrow clause, where a set percentage of the player's post-tax income is withheld in an escrow fund. The percentage is the same for every player, and whatever amount HRR falls below the projection, the owners take their due out of the escrow fund before it gets paid back to players at the end of the season.

So if not as many people buy game tickets or the TV package, Ovie loses money.


Sent from my iPad using Tapatalk Pro
 
Yakob said:
I suspect those companies are in a better position to legally fight an IRS audit or bribe the IRS than most individual pilots.
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I believe these companies have people that take the time to read tax statutes and legally abide by the rules, which favor them.
 
Yakob said:
I suspect those companies are in a better position to legally fight an IRS audit or bribe the IRS than most individual pilots.
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I believe these companies have people that take the time to read tax statutes and legally abide by the rules, which favor them.
 
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