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LAX or SFO based but live out of state. Taxes

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Old 10-28-2014, 09:21 AM
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Default LAX or SFO based but live out of state. Taxes

We live in Denver. Wife was originally based in EWR. Got a lateral to LAX. Pay stub and all of 'My Info' still show EWR and NJ deductions (NJ Unemployement/HCSF/WDPF etc. No NJ state taxes though were ever withheld. Only Colorado). No additional money has been deducted for these things since her lateral.

Since she's flying out of LAX now, I assume she should be having some sort of CA based taxes/deductions being reported/removed. When questioned, payroll said it doesn't matter that everything is still Jersey based.

Seems wrong?
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Old 10-28-2014, 09:32 AM
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Originally Posted by steve0617 View Post
We live in Denver. Wife was originally based in EWR. Got a lateral to LAX. Pay stub and all of 'My Info' still show EWR and NJ deductions (NJ Unemployement/HCSF/WDPF etc. No NJ state taxes though were ever withheld. Only Colorado). No additional money has been deducted for these things since her lateral.

Since she's flying out of LAX now, I assume she should be having some sort of CA based taxes/deductions being reported/removed. When questioned, payroll said it doesn't matter that everything is still Jersey based.

Seems wrong?
Once the state of California finds out she is based in California, they are going to claim she never filed a state income tax return and demand proof that you live out of state.

Payroll or whoever you talked to is wrong. California will have SDI deducted from her paycheck and you are better off being California based than New Jersey based because the labor laws are more friendly and you have outs there that you don't have in New Jersey, even if you live out of state.

For example, you aren't sick but your kids are. Your wife can call in "California sick" which means she needs to use sick time to take care of a family member. Also all the super liberal labor laws apply to you, so for example your employer can't arbitrarily reduce your pay if they overpay you without your written consent.

Good luck.
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Old 10-28-2014, 09:41 AM
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Originally Posted by pilot64golfer View Post
Once the state of California finds out she is based in California, they are going to claim she never filed a state income tax return and demand proof that you live out of state.

Payroll or whoever you talked to is wrong. California will have SDI deducted from her paycheck and you are better off being California based than New Jersey based because the labor laws are more friendly and you have outs there that you don't have in New Jersey, even if you live out of state.

For example, you aren't sick but your kids are. Your wife can call in "California sick" which means she needs to use sick time to take care of a family member. Also all the super liberal labor laws apply to you, so for example your employer can't arbitrarily reduce your pay if they overpay you without your written consent.

Good luck.
Fabulous. More payroll fighting. They still haven't got the extra life insurance deduction were signed up for in FEBRUARY correct. Grieving it to ALPA has done nothing. Phone calls back and forth between payroll and MetLife is worthless. Really out of ideas here to get this sh** fixed.
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Old 10-28-2014, 09:45 AM
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Originally Posted by pilot64golfer View Post
Once the state of California finds out she is based in California, they are going to claim she never filed a state income tax return and demand proof that you live out of state.
I've heard that California is particularly obnoxious about questioning this. However, the law is clear, that pilots and railroad folks pay state income tax only in their state of residence (Colorado, in this case) provided more than 50% of your flying is out of state. So if they ask for proof, you provide it, and everything should be kosher.

However, your domicile is your "tax home" even though you don't reside there or pay state income taxes there (weird, huh?) so things like disability insurance and unemployment and such should follow your domicile moves.
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Old 10-28-2014, 10:35 AM
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Originally Posted by ackattacker View Post
I've heard that California is particularly obnoxious about questioning this.
California is going to do everything they can to get your money. When I was flipping houses in Riverside County, even though I was a NV resident, California was making me prove on each transaction that I wasn't delinquent on paying them taxes and they still taxed the profit of each flip. Fortunately, if you pay yourself a high enough commission there is no "profit".

Not sure why they make it so hard to do business there, but I'm not into owning or doing any business in California other than going to work there.
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Old 10-28-2014, 01:21 PM
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Steve:

It's been contested way in the past. You live in Denver and fly out of LAX. You will owe Colorado State taxes and pay this, CA OASDI/EE, to California.

Pretty simple, but make sure you make Colorado your state of residence to UAL and your personal taxes.
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Old 10-28-2014, 02:01 PM
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Originally Posted by pilot64golfer View Post
California is going to do everything they can to get your money. When I was flipping houses in Riverside County, even though I was a NV resident, California was making me prove on each transaction that I wasn't delinquent on paying them taxes and they still taxed the profit of each flip. Fortunately, if you pay yourself a high enough commission there is no "profit".

Not sure why they make it so hard to do business there, but I'm not into owning or doing any business in California other than going to work there.
If you're making money in CA, on the fact that CA real estate is appreciating faster than in NV, why shouldn't you have to pay taxes on those sales to the state of California? Just wondering.
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Old 10-28-2014, 02:35 PM
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Originally Posted by pilot64golfer View Post
California is going to do everything they can to get your money. When I was flipping houses in Riverside County, even though I was a NV resident, California was making me prove on each transaction that I wasn't delinquent on paying them taxes and they still taxed the profit of each flip. Fortunately, if you pay yourself a high enough commission there is no "profit".

Not sure why they make it so hard to do business there, but I'm not into owning or doing any business in California other than going to work there.
If you pay yourself a commission on a home sale in CA you will owe the state of CA income taxes on that commission regardless of where you lived. You might avoid Capital gains but legally you have to file a state return for all income earned in the state. Living in Nevada would have no bearing on this.
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Old 10-28-2014, 03:04 PM
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Originally Posted by ReserveDog View Post
If you're making money in CA, on the fact that CA real estate is appreciating faster than in NV, why shouldn't you have to pay taxes on those sales to the state of California? Just wondering.
Because I get double taxed. CA gets me on the profit as well as IRS taxes. And it wasn't because properties were going up faster, my source for cheap properties had them all over the Southwest so I had to do it in whichever state.

CA didn't get a penny.
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Old 10-28-2014, 03:05 PM
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Originally Posted by sailingfun View Post
If you pay yourself a commission on a home sale in CA you will owe the state of CA income taxes on that commission regardless of where you lived. You might avoid Capital gains but legally you have to file a state return for all income earned in the state. Living in Nevada would have no bearing on this.
No. CA does not have a "commission tax". Real estate agents in CA file tax return just like anyone else. Also, if the exact amount of commission earned is paid out as a referral fee to a broker out of state, then the net commission in CA is zero and the entire commission is a taxable event in NV that has no state income taxes.
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