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I am moving to CA from WA. My job will be the same (my salary will be the same), my company is the same which is in WA. We own a home in WA (will rent out).
My company does have an office (work location) in CA and they are working on setting me up there.
So, do I still need to pay CA state tax? Please let me know
I live in nevada(no state tax), work in nevada, but drive over 62 miles one way to work. I used mileage as a deduction on my taxes this year. My accountant said I have to pay CA tax because if using the deductions, the company I work for is an original CA company. This doesn't sound right to me.
"Commuting expenses. You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. These costs are personal commuting expenses. You cannot deduct commuting expenses no matter how far your home is from your regular place of work. You cannot deduct commuting expenses even if you work during the commuting trip."
I think the old phrase "you can't have your cake and eat it too" phrase comes in here. Someone can correct me if I'm wrong but I understand it as this:
If you are going to claim mileage it would only be allowed (and a stretch at that) to claim it under the assumption you are driving to a secondary office, not the primary office. This would mean you claim the primary office as your "main" place of employment. Because it's in California, then you would also have to claim California income tax.
Really, that's a huge stretch and it sounds like you should only pay Nevada state income tax (or not pay if they don't have it) however your mileage to and from your office wouldn't be deductible, regardless of how far it is.
... I would talk to your payroll or HR office and get it straightened out and claim a full CA tax refund and amend previous CA returns to get your money back. If they ask you to explain the amended return, just tell them you never worked in California. You'd need to amend your federal returns as well to account for the CA refund. Since this amount will be many thousands of dollars, I would say its worth the effort.
Hello, I have a similar issue, I started working in California from Sept 2013 to Dec 2014 and then moved to Charlotte, N.C in Feb 2015 to current.
My employer is in CA, and I'm paying CA tax and CA disability from Feb 2015.
I cannot say, I never worked in California, but what should I do in my case? Please advise.
Hello, I have a similar issue, I started working in California from Sept 2013 to Dec 2014 and then moved to Charlotte, N.C in Feb 2015 to current.
My employer is in CA, and I'm paying CA tax and CA disability from Feb 2015.
I cannot say, I never worked in California, but what should I do in my case? Please advise.
California Franchise Tax Board regards all income generated in CA as it's tax base.
If you are working remotely for a CA employer and the income is generated in CA, you may still owe CA taxes even if you're in another state.
Best to check with your accountant to clarify your income source and the possibility of a refund from CA, if any.
You should not pay any California tax. Also to back up your claim to not pay CA tax, be careful as some have said California FTB checks for:
1. where your car is registered
2. your car insurance is not for a California address
3. your bank and credit card statement addresses should not be in CA
4. your driver's license is NOT CA
5. where you are registered to vote (not CA)
The source of income rule should be thrown out when you have sales people living on the east coast who work for a CA based company, yet their clients are on the east coast.
Last edited by frankrj; 12-21-2015 at 07:11 AM..
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