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State Income tax..base or home state??

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State Income tax..base or home state??

Old 11-26-2015, 03:13 AM
  #1  
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Default State Income tax..base or home state??

I live in Florida and I'm sure one's taxed in the state they reside but my company insists on having MASS state taxes withheld since I'm BOS based. We fly to Maine and NY (Colgan's old routes) and have no destinations in MASS other than BOS. Can anyone help me with a reference(s) so I can show our pay people to stop giving MASS my $$?

I work for a little regional (Penair) that only recently started branching out of Alaska into the lower 48 so they're new to all this...any help appreciated!
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Old 11-26-2015, 04:01 AM
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They shouldn't be since AK is a no income tax state. Your pay should be calculated on your declared home of record. If they're withholding MA state taxes, it may be a state regulation, but I would expect you to be reimbursed at the end of the year for that money.

It sucks because either PenAir or MA is getting a year's worth of 'float' off YOUR money.
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Old 11-26-2015, 04:39 AM
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Default 49 usc 40116

The applicable federal law is 49 USC 40116, subsection (f), reproduced below.

Look closely at sub-subsection (2). There are two possibilities, taxation based on home of record. This is by far the most common, since the typical airline pilot flies across multiple states and is not in any single state more that 50% of the time.

The second part may apply to you. If you are flying more than 50% of your scheduled flight time inside Massachusetts, then you pay MA taxes.

Consult your own tax professional or attorney for your specific situation. Here's your free legal advise for the day- do not lie or play fast and loose with tax rules. Ask all the Northwest pilots convicted and sent to prison by the State of Minnesota for such shenanigans.

Regards,
jagbn


(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.
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Old 11-26-2015, 05:44 AM
  #4  
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Copy guys, thanks. Two other pilots that live out of state said they get all their $$ back from MASS (both VA) but still, they get an interest free loan from me.

Copy on that federal law, perfect! anything else out there to use for my case?

Northwest pilots went to jail? interesting I'll have to look that up!
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