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Comments on news posted 2005-03-30 12:03:10: The New York State Court of Appeals has ruled that a Tennessee programmer - who works for a NY company from Tennessee via broadband - must pay NY state income tax. ..

page: 1 · 2

TransitMan
Premium,MVM
join:2000-09-05
Dayton, OH
clubs:
·RoadRunner Cable
·Time Warner VOIP
·Earthlink TrueVoice

This Is Total BS

If I work for a company in my home state, and their headquarters are in BFE, does that mean I pay both my state and the corporation's home state tax. NO

You can only be taxed in the state you make a living in, hence he lives in Tennessee, but the home office is in New York state. His payroll checks are cut in New York state, but he lives in and works in Tennessee. By virtue of this fact, he is only required to pay Tennessee state taxes.

Another analogy, if I work for a local McDonald's, but my checks are cut from the corporate offices in Chicago, IL, do I pay Illinois tax or Ohio tax?
The correct answer, I pay Ohio tax.

Self employeed people who aquire work from an out-of-state company, who do the work in their home, and have never set foot in the state where the work originated are not subject to the originating state taxes. They must pay any and all local home state taxes, as they are working from home.

New York has their money priorities wrong, and this person needs to get a good tax attorney, as well as a corporate attorney to fight this.

As for the other poster who physically works in one state but lives in another, pays Missouri taxes. However, that person is entitled to a full refund of Missouri taxes as he or she is not a resident of that state. They must pay state taxes to the state they live in, hence Illinois.
--
PROUD TO BE HOST OF CRUNCHENSTEIN #2
dick white
Premium
join:2000-03-24
Annandale, VA
·Verizon FIOS

home vs. work vs. corp.HQ state

Every state has a different view so your specific case may vary, but generally you always owe income tax to your state of residence (if it has an income tax). Depending on the rules of the neighboring state you work in, you might owe taxes there too, because that is where your income is earned. Often there are allowances in your home state for amounts paid to other states, but if there is not such an allowance, there will be rules in both states sorting out who gets first choice at taxing you. You won't be taxed twice by different states for the same income. The location of corporate HQ is usually irrelevant, only the location of the local office you work at. For sales and customer support people who may spend most of their time at client sites (perhaps even across several states), the employer's office where you're managed from is the official workplace. And sometimes neighboring states just leave each other's residents alone.

dw

rit56

join:2000-12-01
New York, NY

taxes

New York has a Republican Governor. just today I read of a number of states looking to raise revenue through tax hikes and of those states there was a majority of Republican governors. The Bush administration is running the biggest deficit in the nations history and to attempt to balance the budget they are slicing domestic spending (money they normally give to state governments), not the military, and granting huge tax breaks to corporations and the wealthy. why you people are all complaining about this amazes me. where did you think all the money states need to run local governments was going to come from? I am not at all in favor of taxes but don't you read the papers? deficit... deficit means the government is spending more money than it takes in from tax revenue. state revenue once came in large part from federal taxes but those days are far gone thanks to worst administration ever. the revenue states need has to come from somewhere. blame this on the federal government and the people in the White House. you will see most states doing the exact same thing. not blue or red states but the United States. check yourself. all of you screaming about lower taxes look to your local government. most states are in big trouble and the money you think you are saving Federally you will just be taxed by your state government. check... since this administration has started robbing the middle class has your state raised taxes? maybe in payroll tax, property tax, local sales tax? have they allowed your local phone company another discretionary hidden fee? a national sales tax of I think they want 20% ? remember if they get rid of income tax for a national sales tax remember to add your local sales tax on to the national sales tax. in NY we pay 8.65%. add the future national sales tax that would mean everything I buy will have a sales tax of 28.65%.add 20% to your state sales tax. I'll pass on the national sales tax. this is just the beginning and you can expect state taxes to increase everywhere thanks to the TAX and SPEND REPUBLICANS.

woody7
Premium
join:2000-10-13
Torrance, CA

Re: taxes

Not just repubs, but dems as well.....
--
BlooMe

Amazed_WI

@38.119.x.x

Well, well, well...

What I think is amazing...people complain about the taxes but keep voting the same two parties into office! Vote third party...check out the Libertarian party. You may not believe in everything they have to say, just like anything else, but their overall message is right on...smaller government!!!
dougis

join:2000-05-02
Everett, WA
·Verizon FIOS

Same issue different state

I am in the Same boat, expect I live in WA state and the company is in CA.
To get around CA state income tax (since I am not a resident of CA) we opened an office in WA State (in my house) and the company has a Washington business license. This allows me to not pay the CA taxes (but if WA ever implements one, then I will have to pay it).

Packeteers

@megapath.net

Re: Same issue different state

why should NY stop with TN?
why not tax all the income generated from support people in Dubie INDIA who are working for NY companies.

frankly, this guy in TN was an idiot for being a NY employee. he should have gone subchapter-S, and gotten paid as a consulting vendor. that way, he would pay low or no corporate income tax in TN and owe NY nothing.
rmoonin

join:2000-08-05
Newtown, PA
·Embarq
·Covad Communications

State Tax

I am a CPA and familiar with the arguments made by New York State and by other states. They are claiming "situs" exists through the internet which is an interesting argument. Perhaps that is why there is substantial growth in those States who have no state income tax such as Nevada and Florida.

viperpa33s
Why Me?
Premium
join:2002-12-20
Bradenton, FL
·Bright House

Remembers when

Myself who lives in NJ, I remember when this was implemented way back when and it created such a uproar. I don't know if they tweaked the law or not but back then NY counted your spouses income even if the spouse didn't work in NY.

It was funny cause the Governor of NJ was going to retaliate and the mayor of NYC had a fit. The mayor saying NJ had no right cause NYC was doing it. Ended up getting the NYC mayor more enraged when some NJ cities along the Hudson was only charging 3% sales tax and NYC was over 8%. That sure bit the mayor in the behind.

NYC and NY state will always be money hungry no matter what. They will find a way, even sinking to the bottom of the barrel to tax something.

Trivia: What food item doesn't NY tax? and for what reason?

war_by_proxy

join:2004-06-15
Houston, TX

Can it be enforced?

What I'd like to know is how New York plans to enforce this ruling. They don't have any authority to go get him in Tennessee, do they? And I doubt Tennessee is going to extradite him to New York.

Gemologist
Premium
join:2001-11-15
USA
clubs:

Crooks

Man NY is bad... Glad I don't live there!
gpslouis

join:2004-11-17
Olney, MD

Another reason to eliminate income tax

Eliminate federal and state income taxes entirely and replace them with a hefty sales tax. Tax all sales except uncooked fruits and vegatables and everyone will be healthier.

Tax cheating will go down a LOT this way, too.

And illegal aliens, who notoriously do not report their income, can't avoid sales taxes.

Income tax is a tax on production, whereas sales tax is a tax on consumption. Stop taxing production and people will have more reason to work harder. Tax consumption more and everyone will have even more reason to conserve.
gpslouis

join:2004-11-17
Olney, MD

1 edit

Live in NY, do work for company in Texas

So if I live in New York and remotely do work for a company in Texas (which has no income tax), then I would not have to pay income tax to New York, right?

jinjimbob
Troy Mcclure

join:2001-11-13

Re: Live in NY, do work for company in Texas

said by gpslouis See Profile:

So if I live in New York and remotely do work for a company in Texas (which has no income tax), then I would not have to pay income tax to New York, right?
You pay both states tax. But never more than the max % of any state.

ff1324
Everybody Goes Home
Premium
join:2002-08-24
On Four Day

September, 2001

As a member of a FEMA Urban Search and Rescue Task Force, I was deployed to New York City at 10:45 AM on September 11, 2001. We were on site for 10 days and returned home on September 21.

When I did my taxes that year, my accountant had the headache of her lifetime dealing with the State of New York. I actually had to file a return with NY and file an adjustment with my home state for the money that NY wanted. I worked for the federal government, was paid by FEMA, but the greedy NY state still wanted their share.

Nice to know that all the criminals aren't only in New York City....Seems there are plenty in Albany, too.
--
The funny thing about firemen...night and day they're always firemen

BootleggerX

@xtn.net

the co. doesn't own the guy

He resides in TN. He sells his services to a co. in NY, but he earns HIS money in TN. He pays an 8.75% sales tax. Now many companies are multi-state however they are incorporated in one state like Florida or New Jersey and if I want to take enforceable legal action I must do so in the state of incorporated.
He should tell them he's calling the FBI and reporting them for extortion. Let New York go after his assets in TN. courts. Who's got popcorn?
KD4CVR

join:2000-09-21
Gainesville, GA

Time to SCRAP the IRS

The best thing to come out of the state of Georgia is Congressman John Linder and his plan to overhall the IRS
»linder.house.gov/ and you can read about the plan at »www.fairtax.org/
sethv77

join:2005-03-31
Bismarck, ND

Not right

They shouldn't have the right to charge telecommuters state taxes if they live out of state. They aren't utilizing any of the resources the state taxes pay for (roads, schools, etc). Their state of residence should get that money...
Forums » Telecommuting Income Taxpage: 1 · 2


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