Airline Pilot Central Forums - Skywest pilots based in CA not living there

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Quote:

Originally Posted by Convairator (Post 659425)

I would strongly favor pushing California out into the ocean....

Your eloquent and well reasoned statement has failed to convince me to leave. I will continue to sit in my living room and enjoy the sight of waves breaking on shore. I hope you continue to enjoy your double-wide on a muddy hillside.

Quote:

Originally Posted by AirlineCPA (Post 706258)

The only state that has hit any of my clients on this is California, though it is possible that other states may try it as well. I was able to resolve the matter for my clients without them having to pay CA state income tax. Give me a call if you do get hit with this. I can either respond to the California Franchise Tax Board on your behalf or file an amended return in your home state to get credit for tax paid to CA if you already paid them. You can go to AirlineCPA.com - AIRLINE CREW TAXES and PER DIEM for my contact info.

I will keep your number handy! I was based in CA in 07 & 08 paid my taxes in Iowa where I lived back then and still do now. Haven't gotten my letter yet but won't be surprised when it arrives. If I end up having to pay them $, it will be in the form of an IOU since that is the preferred method they use to pay their fine citizens!

It is actually just a function of an automated system. The system attempts to reconcile state tax returns against ssn's that paid CASDI. That is the California State Disability insurance. Even transportation workers with a different tax home (state) pay CASDI via payroll deduction. You probably noted the 3 or 4 bucks per paystub that goes to CASDI if you are domiciled there. When the system finds an SSN that paid CASDI that has no associated state tax return it generates the letter.

Just check the box for not required and in the comments write that you are a resident of xxxx state and are only based in CA not subject to state income tax. Drop the form in the mail and you are done.

It's just that simple. You will get a confirmation back in a week or two that the records have been updated. That's it.

As for paying a CPA to "FIX" the problem, forget it. Fill out the form they sent with the notice and you are done. It is a non-issue and certainly does not require the services of a CPA to resolve.

If you're a regional FO, you shouldn't worry too much. Afterall, they pay you in peanuts, right? how much can they squeeze an empty tube of toothpaste?

Relevant federal law

The applicable federal law is found at 49 USC sec. 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.

I am not your lawyer. Consult with a legal or tax professional of your choosing. Whatever you do, do not talk to the California tax people without getting competent legal advice.

Quote:

Originally Posted by TheDashRocks (Post 706359)

Are union dues a write-off?

They sure are. . .

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Originally Posted by jagbn (Post 707675)

Consult with a legal or tax professional of your choosing. Whatever you do, do not talk to the California tax people without getting competent legal advice.

Depends on how one chooses to handle it. I simply filled out the form, checked off the appropriate box, explained on the back, and sent it in. Got the letter back a short time later saying the matter was closed and no further action was required on my part.

Other people I know called the Californian tax people, spent time on hold due to the usual and standard governmental bureaucratic inefficiencies, talked to a real live person explaining the situation, and had the matter dropped all the same.

Quote:

Originally Posted by TheDashRocks (Post 706359)

Are union dues a write-off?

Generally yes, but you have to itemize. IRS publications state that taxpayers claiming travel expenses for their job must claim them on Form 2106 – Employee Business Expense which flows to Schedule A – Itemized Deductions.

Quote:

Originally Posted by AirlineCPA (Post 707769)

Yes, but you have to itemize. Crew members claiming travel expenses for their job must claim them on Form 2106 – Employee Business Expense which flows to Schedule A – Itemized Deductions.

Does that not get into some really sticky territory when you talk about "claiming travel expenses"?

Especially for guys that try to write off commuting expenses, like crash pads, etc?

I've heard of guys doing it, but it was explained to me that since you commute, you "choose" to live in one place but work in another, and that crash pads, hotels related to commuting, parking, etc can't be deducted?

Now, if your company REQUIRED that of you, and it wasn't your "choice", that's a whole different matter.

Quote:

Originally Posted by TheDashRocks (Post 706359)

Are union dues a write-off?

Quote:

Originally Posted by Milo (Post 707761)

They sure are. . .

Quote:

Originally Posted by AirlineCPA (Post 707769)

Yes, but you have to itemize.

I was trying to be a wiseass....You know...asking someone from a non-union airline if union dues are a write-off...never mind.