Tax
 

I was just hired and heard a few senior captains have a way to claim residency in Florida and avoid Hawaii State Income Tax. (Despite not even setting foot there). One guy uses an old roommates address that isn't even current. Is this legal?

Search function does wonders.

https://www.airlinepilotforums.com/money-talk/94323-state-income-taxes.html

There are many roads leading to bankruptcy or jail, and each of them has been followed at least once. :rolleyes:

It's called Felony tax evasion by most if not all states. Do you feel lucky?

Hahaha

US Air pilot living in Charlotte with a Texas address for tax purposes:

https://www.justice.gov/opa/pr/forme...ison-tax-fraud

At least 3 guys at Northwest:

Third Northwest pilot convicted of tax evasion | Peninsula Clarion

Fedex guy:

http://wnws.com/news/17806-former-fe...or-tax-evasion




Some pilots think they have it figured out and can show a residential address in Texas, Florida, or any other state with no state income tax. It's outright fraud if you don't physically live there, and a felony tax evasion.

Good luck though, it's a bold move cotton lets see if it pays off :rolleyes:

It's usually a benefit used by members of the Military (maintaining residency in a state elsewhere from the state you occupy while on military duty). The waters get very murky if do it a civilian...

Do you really have to ask if it's legal? Common sense would tell you that it's not...

Most people that do things like this are legitimate Washington residents who were formerly part of HAL's now-defunct Seattle base. Since the vast majority of their flight time is overwater / not technically in any state at all, they file tax in the state they live rather than the state they are based in. There are also a few that do this in Nevada and live in Vegas. These guys are also technically legit for the same reason, as they actually do live in Vegas and spend their layovers at home.

The excuse is "state tax is filed where you work, not where you live, and most of the work is not in any state so I'll file where I live".

Legal? Don't know. Sounds legit enough. I mean state tax in Hawaii is so high if you really don't live here, why would you want to pay it? But the dude that claim Florida and fly 737s out of Newark or something.... prison sucks.

It's entirely legal to do what you post. Transportation workers have a exemption to normal tax law. If you can't determine a state where you perform 51% of your work you may fall back on your state of residence and pay taxes under that states laws. If you actually live in Nevada or Washington you are 100% legal. On the other hand if you don't live in the state you claim you are committing tax fraud.

That thread is nearly worthless..... and rightfully closed.

I especially get a kick out of how several posters claim that FL has very high property taxes.

I pay far less property tax in FL (for a much nicer house) than I do for a rental house in CA (for far better services as well) and the actual dollars paid is less than in GA or many other states with income tax.