Tax time!

[BRPORSCHE]

Hey Guys,

Looking for some general information, and hopefully someone can point me in the right direction.

In the past I have always had an easy time when it comes to filing my taxes. Single, no dependents, no home, no loans, and no Texas state income tax !

Well this year some of that changed, and I am looking to hopefully limit my damage.

1. Quit old job located in Texas. Was paying federal taxes but no state income tax.
2. Was hired by new job located in California. I am paying both Federal and state income tax.
3. I have spent a total of a month in California in 2014. Was always in a hotel.
4. Retained Texas residence.

Here is the question… Can I in anyway recoup those California income taxes since I am not a resident and I have spent less than a month in California?

I plan on having my taxes done by a CPA this year, but am just trying to make sure I have all my ducks in a row.

Thanks!

[allaircooled]

I work in 2-4 states per year depending on how long a project is. Have to do a return for each one. At least I don't have to pay taxes in my home state.

I usually get a refund from those states though. I have always done my own taxes but this year I think I will pay someone. It's starting to get complicated.

[john70t]

Originally Posted by BRPORSCHE

Here is the question… Can I in anyway recoup those California income taxes since I am not a resident and I have spent less than a month in California?

Magic8ball indicates no:
https://www.ftb.ca.gov/individuals/fileRtn/Nonresidents_PartYear_Residents.shtml#how_taxed
"Nonresidents of California - Taxed only on income from California sources.
Part-year residents of California - Taxed on all income received while a resident and only on income from California sources while a nonresident."

[BRPORSCHE]

Originally Posted by john70t

Magic8ball indicates no:
https://www.ftb.ca.gov/individuals/fileRtn/Nonresidents_PartYear_Residents.shtml#how_taxed
"Nonresidents of California - Taxed only on income from California sources.
Part-year residents of California - Taxed on all income received while a resident and only on income from California sources while a nonresident."

Bolded is the part I am most interested in. It is a global company that has its head quarters in Houston.

[john70t]

Interesting scenario.
1). Technically, only the company records vs. your bank account (concurrently) knew you might have been receiving wages while in state.
2). The CC indicates you only spent time there. For whatever reason.
3). Where you working on California company business solely, while staying there, or all international company business matters?

I'd advise following whatever best prudent and professional legal advice there exists. Cough.

"From California sources" seems to be the determinant clause.

[john70t]

(The Cali Tax Franchise has the Eye of Sauron, the reach of Mister Fantastic, and the grip of a bench vise. Conflicting records are easily sourced.)

[fintstone]

As far as CA is concerned, you are a CA resident and liable for taxes on any pay received after your arrival there. They will track you to the end of earth to get their due.

[fintstone]

This is the example that I believe applies to you (unless I misunderstand your initial post...that you live and work in CA.). It does not matter where your company headquarters are located or where your paycheck comes from.
https://www.ftb.ca.gov/forms/2013/13_1031.pdf

Example 2 – In December 2012, you moved to California
on an indefinite job assignment. You rented an apartment
in California and continued to live in the apartment. You
retained your home and bank account in Illinois until April
2013, at which time you sold your home and transferred
your bank account to California.
Determination: Your assignment in California was for an
indefinite period; therefore, your stay in California was
not of a temporary or transitory nature. Although you kept
ties in Illinois until April 2013, you became a California
resident upon entering the state in December 2012. As a
resident, you are taxed on your income from all sources.

[red-beard]

If less than 30 days, I expect you'll be able to recoup the California taxes. But you will be paying someone to fill out your forms.

I would go with Turbo Tax or one of those types Federal with a state of California program as well. It should be very simple. One thing, if you pay state income tax to California, I think you will lose the ability to deduct Texas sales tax.

[BRPORSCHE]

Thanks everyone.

Looks like I need to compile my trip itinerary, and count how many days I was in California. They really don't make this easy do they?!

[red-beard]

I would have raised hell with the HR group and never let them collect the CA taxes in the first place.

[JJ 911SC]

Originally Posted by red-beard

I would have raised hell with the HR group and never let them collect the CA taxes in the first place.

And maybe tag as a potential problematic employee... to be let go before the probation period ends.

[allaircooled]

My company is head quartered in Tampa, I worked in Cali the first half of the year. Then Colorado for the summer, and now I am in Oklahoma. I am a resident of Florida and my company had taxes taken out of my check for each of those states. Which of course means I have 3 state tax returns to file in January.

You will pay taxes for whatever state you work in regardless where your company is based out of or what state you are a resident in.

edit: actually I am not sure what people pay when their home state has income taxes and work in another state that has income taxes. Florida has no income tax but I do pay in all the states I work in.

[red-beard]

He was in California for less than 30 days. It was a business trip. Training I believe. I didn't pay taxes to Illinois when I worked for Solar Turbines and made several trips to Peoria. He wasn't a resident or planning to be a resident of CA. He shouldn't have had taxes collected. Now he has to fill out forms and presumably pay for someone to get his money back.

And my "raised hell" was an exaggeration. They made a mistake.

20+ years ago, GE incorrectly collected payroll taxes for Massachusetts. I went to the payroll dept. The first response was "just file forms and get the money back at tax time". I said: "It wasn't my mistake, you need to correct this." Yes, I had to go up a level, but they corrected the mistake and returned the money to me. The person who makes the mistake should be the one to correct it.