Skywest pilots based in CA not living there
 

My fiance was based in FAT for 2007 but we lived in IL. He just got a letter from CA claiming that he did not file CA state income taxes and they want their money. He filed in IL and paid in IL, we lived in IL. The letter states if you work in CA you have to pay CA income taxes even if you do not live there. Have any of you guys had the same problem? What's the best way to go about this?

Yes, had this same problem. I showed them my state tax return and that seemed to shut them up for now. But hey, what do you expect from a state that's bankrupt.

Based in TX, forced to pay in CA where I lived. What did I do? I paid. Sorry couldn't be of more help. Hopefully someone else has other options for your fiance.

Well I figure since you reside in CA, then you have to pay CA taxes. However the first respondent lives in IL and paid IL taxes. CA can't put someone in double jepardy and have them pay 2 state taxes.

I would strongly favor pushing California out into the ocean and watching it float away, then they could join up on china and be a complete communist country. Rolling blackouts, earthquakes, pollution, smog, mudslides, through the roof cost of living, extremely high taxes, legalizing illegal immigration, bastardizing and harassing on our US service members, nancy pelosi, san francisco.

California wants you to pay double taxes because they need to put food on the table of all their new 'immigrants' and put their kids through college for free. California, the worst place on earth.

Our problem is different. He was based in CA, lived in IL. He paid in IL. Sounds like we did what you did.

Best.
Idea.
Ever.

Unfortunately, there is no federal standard that says you only have to pay taxes in one state. Each state sets it's own requirements, and if you meet the requirements of two (or even three) states, you have to pay them all.

It's not a bad idea to research the requirements for the state you are domiciled in, if you don't live there.

Also try to fly under the radar...avoid going on record with a local address, car registration, etc.

PA and CO will withhold a small amount just for being domiciled there...I don't think you can get that back. But they don't seem to to try to tax as a resident.

If you live in another state and you pay income taxes to that state CA has no claim, in addition there are special tax considerations for transport workers that keep them from being able to make your husband pay.

Heres a link to a SkyWest FO's website he and his wife are both CPA's and could probably give you some advice if you need it.

AirlineCPA.com - SERVICES

Did the letter have a stamp on it, or an IOU?

I would have to agree with some of the above but not the last sentence. I've been around our union for a couple of years now, as well as most of the developed areas of the world. I'm still struggling to find a better place than California. There is a reason for the high amounts of $ circulating in the state, though I can't say the same for it's gov.

They don't call the state the People's Soviet Socialist Republic of California for nothing. With their massive budget deficits, they'll be looking high and low for any change that might be under the sofa cushions.

I received the same letter the other day, I called them, told them i was only based there for 5 months and never lived there. (Not even a crashpad)
They told me to fill out section B on the form and fax or mail it back to them. I filled it out and told them that less than 50% of my income was made while working out of CA and thats all i was told to do. We'll see if i hear anything back from them or not but this was from 2007 taxes!! 2 years later they are attempting to hit me up for taxes because they're going bankrupt. Not my problem California :cool:

Maybe, maybe not. If he is just domiciled there, he should be OK. But if he has a CA address, car registration, etc he might have a battle to fight.

Again, just because you pay taxes in one state does not automatically exempt you from having to pay another...many folks do, but they are usually dual-residents who split their time between the states in question. Flight crew can usually avoid it by not putting down roots and leaving a paper trail.

And when it comes to government revenue services...if they say you ow them, you are guilty unless you can prove otherwise.

California is the worst place on earth.... You should never move there you'll hate it. No seriously please stay out. All you big manly conservatives scare us liberuls; we may be too scared to work and pay federal taxes so that the goverm'nt can dole out the money to all you real americans in the fly over states.

Huh? .

Just to let you all know, if you give California to China, this country will see a dramatic food shortage or higher prices for your food as it will have to be imported from China.
But, as you wish....

re-re-repost from
clipping from an earlier post

Your CA income isn't taxed unless more than 50% of your flight time was in California. Whether they'd make you document that, and how that would play for a reserve guy who didn't get launched every day-who knows. Next link is from the State of California tax website, so, hopefully whatever crat you wind up speaking with next week is somewhat aware of California tax laws. If not, 1031 is the pub you need to remember (See p.7)

http://www.ftb.ca.gov/forms/2008/08_1031.pdf

what he said is this: if you look at a map of th ratio of tax money sent to the federal government v. fed tax money coming in, it almost perfectly overlays a map showing the voting tenancy of the states. i.e. NY & CA send in a lot more tax dollars to the Federal government than they ever get back, and the Mississippis & Oklahomas get a lot more than they every pay out.

MOD INPUT: We can talk economics, but this is getting awfully political. Please steer clear of that.

Getting taxed in 2 states, that's crazy!! Anybody else have this come up in any states other than CA?

what is this world coming to?

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 thought I've heard the most ignorant comment on this message board a few months back, I am obviously mistaken. I'd like to hear the facts surrounding your claims. I'd like to put ignorant people like you on an iceberg and have you float away out of the US. Do you even know what communism means?

First of all I'm pretty sure CA is #1 on the list of Federal Tax Revenues by state, you watch CA float away, you will see over $300 billion float away yearly. I'd rather have one earthquake every 20 years than 20 tornadoes every year. Your other claims, name one state that does not have that.

Where do you live?

I like California, and San Diego in particular, so I think I'll just keep living here.

I was eating at a restaurant the other day, and some guy was talking smack on his cell phone... how terrible California is, and how he can't wait to leave. I offered to buy him a one-way plane ticket that left immediately. Sure don't want him to suffer one more minute.

About 75 degrees today, clear blue skies, light coastal breeze. Think I'll have an ice tea.

Yikes, I read that blurb about non-residents and calculating how much flight time occurs in CA and how much time of your trip is spent in CA (ie. layovers). It sounds like a very convoluted formula for determining how much you need to pay. I've been working in CA and living out of state for a couple of years and have only had to pay CA disability taxes. I was told that if you work for the airlines and are already paying another state's taxes, you are not obligated to pay taxes in another state that you are working in. But I have never been audited or been asked by CA to pay up.

Taxes
 

Hey Freightpuppy. Just have R. comat the check to me, based in LAX now. I'll forward it to Sacramento.

Smile...

C. W.

Agreed. Stay out of California if you dont like it. I dont live there now but wish I did. I have been to every state in the country, and many, many countries all over the world and there is no place like California. I love it. All you East Coasters or whereever you live, can stay on your side of the country, in your run down cities, and I'll keep enjoying the 75 degree year round weather, mountains, deserts, and Pacific Ocean. Stay out children.

Are union dues a write-off?

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.

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.— 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.

They sure are. . .

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.

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.

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.