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  #6  
Old 04-01-2005, 08:44 AM
zigzag13
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Default What state tax to pay?


I've similar problem. Any help is appreciated.
My employer is in New Jersey and cuts NJ taxes on my
paystub. I work on a client place in CT and live there. For
tax year 2004, Jan I stayed in NJ and from feb-Dec I was in
CT. I've my driving licence and car regn changed to CT.

Question is should I file tax returns in CT or NJ?
My employer says he won't do CT tax cuts on my pay stub
b'cos of his own problems.

Your thoughts and advise is highly appreciated.
Thanks
zigzag13

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  #5  
Old 03-27-2005, 12:37 PM
Bryan Kellar
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Default Re: Which state tax to pay

"lcrusader" <lcrusader[at]yahoo.com> wrote:

- quote -

> I am having a bit of a problem trying to understand how
> state taxes are withheld when your employer location is
> different from yours. In 2004, I was a resident of Texas and
> my company was based in Wisconsin. Wisconsin witheld taxes
> from my payroll claiming that income source was Wisconsin.
> Today, after changing jobs, I live in California (high
> income tax) and my employer is based in NH (no state tax)
> and I end up paying CA tax. This time I am told that state
> tax is tied to residency status. I lose either way.
> Which one is correct? Did I really have to pay taxes to
> Wisconsin even though I was never a resident?


You would only owe taxes to Wisconsin (or any other state)
if one of the two things happen: Either you were a resident
of Wisconsin, or you were actually performing the work
there. If you really did neither of those, then there is no
tax due. You could file an amended state return to claim a
refund of taxes paid.

Bryan

--
Bryan Kellar, EA
Oregon Tax Help, Inc. -- Portland, Oregon
www.oregontaxhelp.com
www.canadatax.org

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  #4  
Old 03-27-2005, 11:20 AM
A.G. Kalman
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Default Re: Which state tax to pay

lcrusader wrote:

- quote -

> I am having a bit of a problem trying to understand how
> state taxes are withheld when your employer location is
> different from yours. In 2004, I was a resident of Texas and
> my company was based in Wisconsin. Wisconsin witheld taxes
> from my payroll claiming that income source was Wisconsin.


Wisconsin did not withhold anything from your pay. Your
employer erroneously withheld WI taxes from your pay. If you
never worked in WI and you have no other type of income
sourced from WI, you do not owe any WI income taxes. You
need to file a WI nonresident tax return to obtain a refund.

- quote -

> Today, after changing jobs, I live in California (high
> income tax) and my employer is based in NH (no state tax)
> and I end up paying CA tax. This time I am told that state
> tax is tied to residency status. I lose either way.


This employer is partially correct. See below.

- quote -

> Which one is correct? Did I really have to pay taxes to
> Wisconsin even though I was never a resident?


No and see above. The general rule is that your state of
residence is free to tax all your income received while a
resident regardless of where it is sourced. Any state where
services are performed or a business is operating is free to
tax the income earned in that state regardless of where a
person has a residence.

--
Alan
http://taxtopics.net

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  #3  
Old 03-27-2005, 11:01 AM
Thomas Healy
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Default Re: Which state tax to pay

"lcrusader" <lcrusader[at]yahoo.com> wrote:

- quote -

> I am having a bit of a problem trying to understand how
> state taxes are withheld when your employer location is
> different from yours. In 2004, I was a resident of Texas and
> my company was based in Wisconsin. Wisconsin witheld taxes
> from my payroll claiming that income source was Wisconsin.
> Today, after changing jobs, I live in California (high
> income tax) and my employer is based in NH (no state tax)
> and I end up paying CA tax. This time I am told that state
> tax is tied to residency status. I lose either way.
> Which one is correct? Did I really have to pay taxes to
> Wisconsin even though I was never a resident?


Employer #1 did it wrong. But you will have to file a WI
return to claim the amount that was incorrectly withheld.

Employer #2 did it correctly.

--
Tom Healy, CPA
Boulder, CO
Web: http://www.tomhealycpa.com

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  #2  
Old 03-27-2005, 11:01 AM
Sassy Baskets, EA
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Posts: n/a
Default Re: Which state tax to pay

lcrusader wrote:

- quote -

> I am having a bit of a problem trying to understand how
> state taxes are withheld when your employer location is
> different from yours. In 2004, I was a resident of Texas and
> my company was based in Wisconsin. Wisconsin witheld taxes
> from my payroll claiming that income source was Wisconsin.
> Today, after changing jobs, I live in California (high
> income tax) and my employer is based in NH (no state tax)
> and I end up paying CA tax. This time I am told that state
> tax is tied to residency status. I lose either way.
> Which one is correct? Did I really have to pay taxes to
> Wisconsin even though I was never a resident?


Laws vary from state to state. According to the WI Dept of
Revenue website, if you did not do any work in Wisconsin
(e.g., if you did all your work at home in Texas), then the
wages for that work are not Wisconsin-source income. File
your Wisconsin tax return to get your withholding back.

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  #1  
Old 03-27-2005, 10:42 AM
rick++
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Posts: n/a
Default Re: Which state tax to pay

The Wisconsin case is probably wrong and you should amend
if it saves you money. The California case is correct.

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Old 03-27-2005, 10:04 AM
Paul A Thomas
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Posts: n/a
Default Re: Which state tax to pay

"lcrusader" <lcrusader[at]yahoo.com> wrote

- quote -

> I am having a bit of a problem trying to understand how
> state taxes are withheld when your employer location is
> different from yours. In 2004, I was a resident of Texas and
> my company was based in Wisconsin. Wisconsin witheld taxes
> from my payroll claiming that income source was Wisconsin.
> Today, after changing jobs, I live in California (high
> income tax) and my employer is based in NH (no state tax)
> and I end up paying CA tax. This time I am told that state
> tax is tied to residency status. I lose either way.
> Which one is correct? Did I really have to pay taxes to
> Wisconsin even though I was never a resident?


Earnings can be taxed in two locations, by the state
(county/city) earned and the state (county/city) where you
reside. Generally the state you reside in will allow an
off-set or tax credit for the tax paid to the other state
(the state where it was earned).

From your post it looks like the first employer was doing
things wrong. Unless you worked in Wisconsin, then Wisconsin
taxes should not have been withheld. The second employer is
doing things right, or so it seems.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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  #-1  
Old 03-25-2005, 06:42 AM
lcrusader
Guest
 
Posts: n/a
Default Which state tax to pay

I am having a bit of a problem trying to understand how
state taxes are withheld when your employer location is
different from yours. In 2004, I was a resident of Texas and
my company was based in Wisconsin. Wisconsin witheld taxes
from my payroll claiming that income source was Wisconsin.

Today, after changing jobs, I live in California (high
income tax) and my employer is based in NH (no state tax)
and I end up paying CA tax. This time I am told that state
tax is tied to residency status. I lose either way.

Which one is correct? Did I really have to pay taxes to
Wisconsin even though I was never a resident?

TIA
Ravi

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