Thread: Two Questions
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Old 07-10-2007 | 12:39 PM
  #10  
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rickair7777
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From: Engines Turn or People Swim
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Some states (Penn, Colo. for sure) will withhold some special crew taxes from your paycheck if you are domiciled there. Technically you are supposed to file income taxes, but the withholding is small and most states won't bother you if you just let them keep their withholding.

DANGER: There is no federal law that says that you cannot be compelled to pay income taxes in more than one state! Each state has their own requirements for what constitutes residency, and they are not necessarily exclusive of each other.

Governments like to line their own pockets...if you meet a state's tax eligibility, they are NOT going to let you off the hook just because you paid taxes in another state. After all it's THEIR money and they are ENTITLED to it...they are not going to be understanding.

To make matters worse, "residents" probably have to pay tax on ALL income, not just that earned in domicile. I have to be very careful because my wifes job (filing jointly) and other sources of income could also get taxed.

Pilots can get in trouble here if they start getting mailing addresses, registering cars, or other things that will document that they spend time in their domicile. Also states are likely to consider ALL of time you spend on a trip that starts and ends at your domicile as "resident" time.

Best thing is to leave no paper-trail in domicile, no car registration, leases, etc. (an informal crash-pad lease should be fine).
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