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Comments on news posted 2005-11-01 10:23:08: Back in March we mentioned that the New York State Court of Appeals ruled that a Tennessee programmer - who works for a NY company from Tennessee via broadband - had to pay NY state income tax. ..

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oliphant
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join:2004-11-26
Corona, CA


1 edit
Double taxation...

...nothing new for gov't. I'm sure TN will come after the guy too saying he earned the money in TN.

There is no end to the greed of gov't.

Perhaps they can start taxing those employed in call centers in India.

--
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shaner
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join:2000-10-04
Calgary, AB

what junk

What a line of crap. Where does it end? If I travel to New York on a business trip, does that mean I'll have to pay NY income tax an any money I make on that trip? Or if I do some project which a NY company buys? I mean, this is absolutely the stupidest thing I have ever read.
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jtanner
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Cumming, GA
reply to oliphant
Re: Double taxation...

TN doesn't have state income tax. But it's an interesting point--what happens when someone lives in Massachusetts and telecommutes to NY? Wouldn't they get taxed twice?

Jim


N3OGH
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1 edit
reply to oliphant
Sounds like a good idea to me.

NY is one of the greediest states in the country when it comes to taxes. I mean taxed for telecommuting, give me a freakin' break.

I've got a good idea for all these companies. Go set up a data center in Florida. No state income tax. Then they can tel NY to shove it...

gbrown759

join:2003-05-03
Ridgeland, MS
reply to oliphant
TN has no state income tax, but I'm sure there are a few "guys" in a smoky back room trying to find a way to get their share too.


Maarvin
Premium
join:2005-04-11
Denver, CO
reply to shaner
Re: what junk

I mean no offense to those who live there, but NYC has always been known for taxing first and solving problems later. This fellow from Tenn. will unfortunately be tied up in paperwork for years. Try working with the IRS, they may be more receptive.

navalpatel

join:2003-07-28
Lubbock, TX
No taxation with out representation

Technically, since he doesn't live in New York, he wouldn't have voting rights, etc... Thus, couldn't he argue that he was being unconstitutionally taxed because there is no one representing him (in New York since it is a state tax).


jsimmons
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join:2000-04-24
Falls Church, VA

reply to shaner
Re: what junk

said by shaner See Profile :

What a line of crap. Where does it end? If I travel to New York on a business trip, does that mean I'll have to pay NY income tax an any money I make on that trip? Or if I do some project which a NY company buys? I mean, this is absolutely the stupidest thing I have ever read.
Several years ago, I worked on a project that required me to spend 2.5 months working in Colorado, one month in California, and the remainder in Virginia. Strangely enough, the customer we were contracted to was in Alabama. Taxes were withheld from my paycheck for all 3 states in which I worked (even though I was living in a hotel most of the time) and I had to file 3 state tax returns. If that situation ever pops up again, I will quit. The amount of time it took to prepare and file federal and 3 state tax returns was rediculous.

Just glad I'm getting close enough to retirement that I won;t have to deal with such issues much longer.
--
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JTRockville
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reply to jtanner
Re: Double taxation...

said by jtanner See Profile :

TN doesn't have state income tax. But it's an interesting point--what happens when someone lives in Massachusetts and telecommutes to NY? Wouldn't they get taxed twice?

Jim
I live in Maryland. The company I work for is headquartered in Virginia, though they have offices all over the globe.

Whether or not I commute to one of their offices, I pay my taxes to my home state of Maryland. As it happens though, I rarely work from anywhere other than my home. I've been a full-time telecommuter for over 8 years.


xdeadhead
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Mechanicsburg, PA
reply to jtanner
haha living in taxachusetts, i bet they are already being taxed twice.
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JTRockville
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reply to navalpatel
Re: No taxation with out representation

I think it would make more sense if traditional commuters paid tax in all states they travel through to get to work. Why target telecommuters, who don't use any transportation resources?


qdemn7
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join:2003-09-16
Fort Worth, TX

Of Course ....

Of course this has nothing to do with NY being one of the states with the highest levels of State "Entitlement" programs around. The pols have to find a way to pay for all those "Bread and Circuses" so they can keep getting re-elected.
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adams_aj

join:2004-08-31
Smithville, MO

Taxation without representation

I'm already facing taxation without representation. Old news. I live outside of Kansas City, MO, but since I work in the city, I have to pay their city earnings tax. I don't get to vote in city elections. Bam. Nothing I can do about it. If you either work or live in KC, you pay the tax. Period.

They're actually looking at forcing the Kansas City Royals' (baseball) and the Chiefs' (football) opposing players, coaches, etc. to pay the earnings tax when they come to play. . . hasn't gone very far, though, but that would add up to a nice, tidy sum if they can pull it off.
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Jim Gurd
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Plymouth, MI
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Federal courts

It seems he could still appeal through the federal courts. The SC refused to hear it but doesn't mean that other courts at the federal level will refuse the case. It looks like he went directly from the NY courts to the SC.

What would happen if he refused to pay? Would (or could) they come after him in Tennessee?


Steve
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Yorba Linda, CA

reply to navalpatel
Re: No taxation with out representation

said by navalpatel See Profile :

Technically, since he doesn't live in New York, he wouldn't have voting rights, etc... Thus, couldn't he argue that he was being unconstitutionally taxed because there is no one representing him (in New York since it is a state tax).
Nice try, but no way. By this logic, foreigners and felons (neither of whom can vote) who live in the state would pay no tax either.
--
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vic102482
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join:2002-04-30
Upper Marlboro, MD
Based on that Logic

Tennesee should charge the city of new york tax for providing the living enviornment for a new york employee.
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bistro777
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Englewood, CO

reply to navalpatel
Re: No taxation with out representation

This is the same "tax thinking and regulation" that is in place, for example, for professional athletes. For "normal folks," how much time do you need to spend in a state? If you spend 14 working or "duty" days in New York State in the course of a year, you're in the clear. Work in the state for more than 15 days, and the state could require you to file a return.

Some discussion can be found here - - -

Telecommuters, Beware of New York
Could you be hit by the 'jock tax'?
Fighting for fair telework tax - New York State's practice spurs draft federal legislation



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TheGhost
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reply to jsimmons
Re: what junk

That is the way consulting works. I have done it for almost 10 years and have almost always had to file at least 2 state income tax returns. I think it varies and I may have the exact number of days incorrect (order of magnitude is right though), but basically if you do work (business trips, etc) in another state for more than 10 days, you have to file state taxes there and claim them as out-of-state taxes paid in your home state. Some states have reciprocity (ie: IL and WI), and in those cases, you only pay taxes in your home state.

It gets worse if you are on a long-term project out of state. If you work in another state for >1 year and have been reimbursed for meals, hotel, etc., those reimbursements then become taxable income. You have to stay out of the area for 22 days before you can go back to avoid this. Working in NJ across the river from NYC would not count if you lived in the midwest for example.

I am so happy to not be doing it anymore.

TheGhost


cableties
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join:2005-01-27
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reply to N3OGH
Re: Double taxation...

Though I agree with telling them to shove it, I am doubtful its smart to put a data center in Florida. Unless you can afford the emergency standby needs from the strain of hurricanes.;)
But this is not the last we'll hear of this. I figure some law professor will open debate in a classroom, and some tech-saavy lawyers will (EFF?) commit to this as unfair taxation.
How about dumping our old CRTs in the Hudson? Or old modems?
(I know, more EPA violations..its pollution)

I had a friend that worked in the city and lived in NJ. He paid BOTH NJ and NYC wage taxes. heck, I worked 1 mile inside Philadelphia and had to pay local borough and philly wage taxes. I would have to pay telecommuting too (as an employee of a company located inside their zone).

Sounds to me like:
-quit the job and consult for them or
-get them to compensate for costs (electricity, systems, cable/WAN connection) if not already
-make salary worth it

(sucks. money you save on commuting, protection to environment and pollution and you still get shafted!)

csalazarv
Premium
join:2004-01-21
Costa Rica

reply to vic102482
Re: Based on that Logic

"What a line of crap. Where does it end? If I travel to New York on a business trip, does that mean I'll have to pay NY income tax an any money I make on that trip?"

actually listen to this one, the IRS was telling pilots of non USA airlines that they were suposed to pay income tax on the portion of their flight/wages that was flown inside USA air space

nice eh?
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