So... if someone lives in Illinois and telecommutes from home to a company located in California (just hypothetically ), would they pay state taxes to Illinois or to California?
Posted by paigereader (Member # 2274) on :
NOT SURE BUT BE CAREFUL. ONE OF MY BOSSES USED TO WORK FOR A COMPANY OUT OF CALIFORNIA BUT ACTUALLY LIVED OVERSEAS... YEARS LATER, HE WENT TO TRY TO GET A LOAN AND HIS CREDIT SAID HE OWED MONEY IN CALIFORNIA. MANY MANY PHONE CALLS AND FAXES LATER, THEY GOT IT STRAIGHTENED OUT. JUST GET ALL THE FACTS.
Posted by ketchupqueen (Member # 6877) on :
*holds head* The shouting.
California has some tricky tax laws relating to people working in it, working for companies based in it, etc. One might have to pay taxes to both, depending on where. I think living WITHIN the U.S. one would be exempt from that requirement (not so overseas), but I can get Jeff to look it up when he comes home if you want, or ask my aunt (Jeff took a course to certify in CA tax preparation that dealt with this, and my aunt is a CPA in CA.)
Posted by Miro (Member # 1178) on :
I couldn't say for sure, but I know that people living in the DC suburbs and commuting into DC pay their taxes where they live.
Posted by BlackBlade (Member # 8376) on :
Alot of people who work in Oregon (where pay is higher) keep homes in Idaho where taxes are far lower.
Maybe it was the other way around, ;p
Posted by ketchupqueen (Member # 6877) on :
Okay, found it. California does require that non-California residents pay tax on all income received from companies in California. I'm not up on Illinois law; some states require you to pay tax on income received from other states while living in your state of residence, whether otherwise taxed or not, and some do not. I can try to look that up for you if you want. (May I suggest telecommuting to Texas instead? No state income tax there. )
Posted by ketchupqueen (Member # 6877) on :
Here we go: according to the Illinois Dept. of Revenue, individuals who pay tax to another state may be allowed a credit with the state of Illinois (scroll down.) You can call them and ask if you want to know for sure, but I think that since CA requires you to pay non-resident income tax, if you were living in Illinois the state would give you a pass on all income that you paid tax to CA on. You would just have to file a special form.
Posted by ketchupqueen (Member # 6877) on :
quote:Originally posted by Miro: I couldn't say for sure, but I know that people living in the DC suburbs and commuting into DC pay their taxes where they live.
Illinois seems to have a similar reciprocal agreement with surrounding states, according to that page I linked. Posted by Lisa (Member # 8384) on :
<grin> Thanks, I'll check that out.
Posted by ketchupqueen (Member # 6877) on :
Happy to help. (I assume that was for me. )
Posted by Lisa (Member # 8384) on :
'Twas.
Posted by Miro (Member # 1178) on :
quote:Originally posted by ketchupqueen:
quote:Originally posted by Miro: I couldn't say for sure, but I know that people living in the DC suburbs and commuting into DC pay their taxes where they live.
Illinois seems to have a similar reciprocal agreement with surrounding states, according to that page I linked.
Huh? Reciprocal agreement? Not likely.
On the one hand, there's the District (whose local laws are determined by Congress) with its one, non-voting representative in the House. On the other hand, there are Maryland and Virginia (whose local laws are determined by the residents of their states) with their combined four senators and nineteen representatives in the House. Whenever the subject of a commuter tax (a tax on the incomes of people who work in DC but live elsewhere) comes up, the people in Maryland and Virginia write Letters to the Editor and to their various representatives, crying foul about 'Taxation Without Representation'. People in the District write Letters to the Editor crying foul about 'Taxation Without Representation'. The difference is, they actually have representation. So we get screwed. Again.
[/rant]
Posted by ketchupqueen (Member # 6877) on :
Um, I said that Illinois has a reciprocal agreement, I didn't say the situation in D.C. was reciprocal. Posted by Miro (Member # 1178) on :
You said, 'similar reciprocal agreement', after quoting me about DC area taxes. If Illinois has a reciprocal agreement w/other states, it is certainly not similar to the situation in DC. That's what I was pointing out.
Posted by ketchupqueen (Member # 6877) on :
Okay. I meant that there was a similar situation in that people who work in Illinois and live in a neighboring state pay taxes to the state they live in. I didn't mean to imply that the CAUSE of the situation was the same, although apparently I did, and I apologize for my unclear communication. Posted by Miro (Member # 1178) on :
quote:Originally posted by ketchupqueen: Here we go: according to the Illinois Dept. of Revenue, individuals who pay tax to another state may be allowed a credit with the state of Illinois (scroll down.)
This is what I misunderstood. I've read through the link, now, and understand it a bit better. I was under the impression that you were saying people who lived in Illinois and worked elsewhere paid where they worked, and not to Illinois.
Still, Illinois gets more than DC.
quote:I live in another state but worked in Illinois. What state do I file with? You will need to contact your home state for its filing requirements. As a nonresident you are required to file the IL-1040 and Schedule NR and pay tax on income earned from an Illinois source, unless you live in Iowa, Kentucky, Michigan or Wisconsin.
Sorry to bite your head off. It's a touchy issue for me. Posted by ketchupqueen (Member # 6877) on :
Thanks. I thought my head was sore but I couldn't figure out why. Posted by Miro (Member # 1178) on :
Yes, my bark may be bad, but my bite spans continents.
Posted by ketchupqueen (Member # 6877) on :
![[Wink]](wink.gif)
), would they pay state taxes to Illinois or to California?
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