Mattio

I was wondering if some JB pilots that live in NH could chime in about income taxes. I thought that if you lived in NH and are based in BOS, you would still have to pay MA income taxes (and I found stuff on the internet that backed this up) but I met a JB pilot today that said he lives in NH and doesn't have to pay the MA tax... Is there like a loophole because the company is headquartered in NY?

dh-98

Hope this helps, company is headquartered in TX, I'm based in EWR, live in VA. I pay VA taxes not NJ. Never been an issue.

ackattacker

The issue is quite confusing, but the way I understand it is that from an IRS perspective your "Tax Home" is your domicile (BOS). This is what makes commuting expenses non-deductible among other things.

However from a State Tax perspective you pay taxes in your state of *residence*. Where you actually live. Residence is NOT the same thing as Tax Home.

So if you live in NH you should NOT have to pay MA taxes. I know a least a half dozen airline pilots who live in NH for exactly this reason.

Where the company is headquartered is irrelevant.

ERJ135

I live in NH, company is based in TX, I'm based in NY.. I pay no state income tax..

ackattacker

"SEC. 1112.(a) No part of the compensation paid by any air carrier to an employee who performs his regularly assigned duties as such an employee on an aircraft in more than one State shall be withheld for income tax purposes pursuant to the laws of any State or subdivision thereof other than the State or subdivision wherein more than 50 per centum of the compensation paid by the carrier to such employee is earned: Provided, however, That if the employee did not earn more than 50 per centum of his compensation from said carrier in any one State or subdivision thereof during the preceding calendar year, then withholding shall be required only for the State or subdivision of the employee's residence, as shown on the employment records of any such carrier; nor shall such carrier file any information return or other report for income tax purposes with respect to such compensation with any State or subdivision thereof other than such State or subdivision of residence and the State or subdivision for which the withholding of such tax has been required under this subsection. "(b) For the purposes of subsection (a), an employee shall be deemed to have earned 50 per centum of his compensation in any State or subdivision in which his scheduled flight time in such State or subdivision is more than 50 per centum of his total scheduled flight time in the calendar year while so employed. "(c) For the purposes of this section the term 'State' also means the District of Columbia and any of the possessions of the United States; and the term 'compensation' shall mean all moneys received for services rendered by an employee, as defined in subsection (a) in the performance of his duties and shall include wages and salary."

Mattio

Bingo! Thanks guys. That's sweet, now just have to talk the gf into moving to NH :-)

jonnyjetprop

Why do you think so many pilots live in Florida

Timbo

If she's just a GF, she gets no vote.

Once she obtains Wife Status, then you have to ask first, but then do as you're told.


Back when I was based in BOS, living in NH (the seacoast, like thousands of other airline pilots) and prior to this new reg (above) the state of MA tried to come after us to grab some state income tax money, since we "Worked" in Boston.

After much discussion with my tax attorney it was decided the most they could claim was for the amount of time I spent in their airspace! Well since most of the departures took you out over the water, then down to RI or Conn immediately, and then we flew around the country for four days, I guessed they could tax me on bout 1% of my income. So I sent them a check for about $7...once. They never bothered me again.

Back in about 1993, we had an excellent, hard nosed, MEC Chairmen who lived in DFW, was based in DFW, but his ALPA office was in ATL. He was not paying GA state income tax because he would commute in, stay in a hotel for a few days, and commute back to DFW.

Then the company called the GA Tax Dept. to report him not paying GA state income tax, just to get rid of him.

sailingfun

The chairman in question actually owned property in GA. That actually did not matter anyway. State income tax is not normally based on where you live. It is a income tax based on where the income is earned. If you live in NJ but drive to NYC to work you pay NY taxes. As posted above a Federal law was passed long ago for airline employees that exempts us from that requirement . Since it's very difficult to determine where we actually work we can use our residence to determine where we will be taxed.
It's strange that Mass would go after anyone in NH since the law is crystal clear. I have never heard of a state doing that. What they will however do is challenge your stated residence. If they can prove that you actually live in MN in your 4000 sq ft home and not in your post office box in Tampa then MN will want their taxes.
In the case of the MEC chairman he performed more then 51% of his work in GA so was not exempt from GA taxes regardless of where he really lived. This also applied to a pilot working in the training department and led to a mass exodus of instructors who really lived in TN or FL but were forced to pay GA taxes. The state of CA even nailed some UAL pilots flying the shuttle years ago because they could show 51% of the flying was inside CA airspace.

Climbto450

I am trying to do the same with the wife.