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Old 12-26-2018, 07:05 AM
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Default Lax based and Cali taxes

For anyone who commutes to lax from out of state how does California handle your taxes? I am under then impression that California wants you pay taxes because you're based there, is this correct?
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Old 12-26-2018, 08:25 AM
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Not exactly. They will force you to pay the ca disability however no state taxes are withheld or required because we are involved in inner state commerce.
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Old 12-26-2018, 09:14 AM
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I’ve read on here if you fly more than 50% in CA you pay. You will not come close to that at AA. They don’t take CA income tax from me.

You will pay CA disability at a rate of about .9% until you reach the cap of $1,149. If you go out on LTD my understanding is the company will reduce your benefits by 5he amount paid to you by CA, so it has no value to you.
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Old 12-26-2018, 10:06 AM
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Originally Posted by PRS Guitars View Post
...If you go out on LTD my understanding is the company will reduce your benefits by 5he amount paid to you by CA, so it has no value to you.
Just gotta love the APA negotiators.
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Old 12-26-2018, 11:51 AM
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Great. Glad to know this. Thank you for the information.
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Old 12-26-2018, 12:19 PM
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Originally Posted by Pilotman520 View Post
Not exactly. They will force you to pay the ca disability however no state taxes are withheld or required because we are involved in inner state commerce.
I believe it is interstate (between states) commerce. Inner state is within one state (like flying between LAX and SFO).
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Old 12-26-2018, 01:55 PM
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California does want to tax your income in that scenario. It usually doesn’t happen right away, but the Tax Board, when it determines you are based in the People’s Republic, may send you a letter demanding back income tax.

As previously stated, if less than 50% of your flying is in/above California, you don’t owe income tax. But if you received The Letter, you have to prove you are not obligated. Otherwise they will pursue the matter.

Your Flight Ops or Payroll department can usually draft a letter that works. Sometimes you may need to produce flight logs showing you departed a Cali base but flew out of state during your pairing.
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Old 12-27-2018, 04:45 AM
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Originally Posted by TransWorld View Post
Inner state is within one state (like flying between LAX and SFO).
If you really want to split hairs that would be intrastate.
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Old 12-27-2018, 05:31 AM
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Originally Posted by ipdanno View Post
California does want to tax your income in that scenario. It usually doesn’t happen right away, but the Tax Board, when it determines you are based in the People’s Republic, may send you a letter demanding back income tax.

As previously stated, if less than 50% of your flying is in/above California, you don’t owe income tax. But if you received The Letter, you have to prove you are not obligated. Otherwise they will pursue the matter.

Your Flight Ops or Payroll department can usually draft a letter that works. Sometimes you may need to produce flight logs showing you departed a Cali base but flew out of state during your pairing.
This is what I was expecting to happen. Thank you.
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Old 12-27-2018, 10:42 AM
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Originally Posted by Surprise View Post
If you really want to split hairs that would be intrastate.
Yes, but I was quoting “Inner State”, the incorrect word from above. I should have quoted “Inner State” [sic].
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