Originally Posted by
Broncofan
I live in Nevada but I am based in California. Everyone I talk to says I only have to pay state taxes in Nevada which is none. But I read something recently that said you have to pay state taxes in any state that you spend either 50% of your time or make 50% of your money in as well. Most of my flights depart or arrive in a California City. Anyone have any Enlightenment on this situation? I don't want to be deer-in-the-headlights during an audit.
No, you don't have to pay CA state income taxes. Here's the text of the applicable federal tax statute.
"The applicable federal law for taxation of air carrier employees (pilots and flight attendants) is 49 USC section 40116(f).
(f)Pay of Air Carrier Employees.— (1) In this subsection— (A) “pay” means money received by an employee for services.
(B) “State” means a State of the United States, the District of Columbia, and a territory or possession of the United States.
(C) an employee is deemed to have earned 50 percent of the employee’s pay in a State or political subdivision of a State in which the scheduled flight time of the employee in the State or subdivision is more than 50 percent of the total scheduled flight time of the employee when employed during the calendar year.
(2) The pay of an employee of an air carrier having regularly assigned duties on aircraft in at least 2 States is subject to the income tax laws of only the following: (A) the State or political subdivision of the State that is the residence of the employee.
(B) the State or political subdivision of the State in which the employee earns more than 50 percent of the pay received by the employee from the carrier.
(3) Compensation paid by an air carrier to an employee described in subsection (a) in connection with such employee’s authorized leave or other authorized absence from regular duties on the carrier’s aircraft in order to perform services on behalf of the employee’s airline union shall be subject to the income tax laws of only the following: (A) The State or political subdivision of the State that is the residence of the employee.
(B) The State or political subdivision of the State in which the employee’s scheduled flight time would have been more than 50 percent of the employee’s total scheduled flight time for the calendar year had the employee been engaged full time in the performance of regularly assigned duties on the carrier’s aircraft. "