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Old 05-05-2019, 08:13 AM
 
Location: Florida
5,661 posts, read 3,674,311 times
Reputation: 10620

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Quote:
Originally Posted by Wartrace View Post
I would set up "residency" in a state with no income tax.

https://axleaddict.com/rvs/Full-Time...tate-Residency
This is what I was going to suggest. If you are an independent contractor, you don't pay taxes based on where the client lives, only where you live. I have clients all over the country and I do not pay state taxes at all because I live in Florida. If I go to another state for a week or two and I work from there, I don't pay state taxes to that state... my accountant has never asked about that at all.

I would recommend getting in touch with a tax lawyer or a good accountant and asking these questions. You'll get more accurate information than you will here.
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Old 05-05-2019, 08:41 AM
 
Location: North State (California)
39,632 posts, read 2,995,231 times
Reputation: 12949
Quote:
Originally Posted by AnotherTouchOfWhimsy View Post
This is what I was going to suggest. If you are an independent contractor, you don't pay taxes based on where the client lives, only where you live. I have clients all over the country and I do not pay state taxes at all because I live in Florida. If I go to another state for a week or two and I work from there, I don't pay state taxes to that state... my accountant has never asked about that at all.

I would recommend getting in touch with a tax lawyer or a good accountant and asking these questions. You'll get more accurate information than you will here.
If you earn enough money in other states, they will want income tax. It is not where you live, it is where the money is earned.

https://money.howstuffworks.com/pers...ent-states.htm

I think most states have a non resident tax return requirement. Of course if you are working under the table they likely won't catch you, but if you get a W2 or 1099, you will need to file.
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Old 05-05-2019, 10:00 AM
 
Location: Aurora Denveralis
8,639 posts, read 3,053,074 times
Reputation: 12904
Quote:
Originally Posted by AnotherTouchOfWhimsy View Post
This is what I was going to suggest. If you are an independent contractor, you don't pay taxes based on where the client lives, only where you live. I have clients all over the country and I do not pay state taxes at all because I live in Florida. If I go to another state for a week or two and I work from there, I don't pay state taxes to that state... my accountant has never asked about that at all.

I would recommend getting in touch with a tax lawyer or a good accountant and asking these questions. You'll get more accurate information than you will here.
You might take your own advice, here. In the simplest terms, state income tax is due based on where you work. If you work from home for remote clients, you're working in your home state. If you go work in their office, you're working in their state. Either you weren't fully informing your accountant, or you need a better one.
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Old 05-05-2019, 10:03 AM
 
Location: Florida
5,661 posts, read 3,674,311 times
Reputation: 10620
Quote:
Originally Posted by Quietude View Post
You might take your own advice, here. In the simplest terms, state income tax is due based on where you work. If you work from home for remote clients, you're working in your home state. If you go work in their office, you're working in their state. Either you weren't fully informing your accountant, or you need a better one.
No, I was working from hotel rooms. I work from home (or from other locations within my own community) but occasionally will work some while on vacation. I guess I wasn't informing my accountant... I'm not terribly worried about it. Since the OP wants to do this as a lifestyle, he needs to ask a qualified tax professional. For someone like me finishing up a project while on vacation in another state once per year or once every two years, I am not concerned at all.
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Old 05-05-2019, 10:23 AM
 
Location: Aurora Denveralis
8,639 posts, read 3,053,074 times
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Conceded that it's a complicated situation, but I did say "working from their office" - not just happening to work remotely from your office for which you work for remote clients.

If you bill any significant number of hours while working on location or on site, even as a nominally remote contractor, that state tax agency is going to take an interest.
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Old 05-05-2019, 11:12 AM
 
3,715 posts, read 2,200,006 times
Reputation: 4169
If he works for a company who is headquartered in say, MN, and that company sends him all over the country, wouldn't he just own taxes to MN? Not to the other states? Since he is employed by just one company.

I've had to travel for work now and then, but was still paid the same as if I was in the office. Obviously not for months at a time though.

He is not necessary making money in the other states, his company is by sending him there.

Feel free to poke holes in my theory......

<edit> I am not an accountant, nor do I pretend to be one anywhere at all

Last edited by WouldLoveTo; 05-05-2019 at 11:44 AM..
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Old 05-05-2019, 11:26 AM
 
Location: Aurora Denveralis
8,639 posts, read 3,053,074 times
Reputation: 12904
Quote:
Originally Posted by WouldLoveTo View Post
If he works for a company who is headquartered in say, MN, and that company sends him all over the country, wouldn't he just own taxes to MN? Not to the other states? Since he is employed by just one company.
Yes, more or less. If he works for 3M and has a desk in Minneapolis, but travels all over to measure desk heights, he would pay taxes only in MN. However, if he works at a division in California any appreciable amount of time, he would owe taxes on the income earned there.

This is mostly an issue because the OP seems to be focusing on gig and contract work, which wouldn't have a home-office or home-state focus. Wherever he works is where he would owe taxes.
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Old 05-05-2019, 12:38 PM
 
57 posts, read 48,305 times
Reputation: 84
Thank you everyone for the input so far.

I watched a few videos by Bob from Cheap RV Living. Very helpful and informative but his videos are oriented towards retired people. My situation no doubt complicates it but hopefully not too much. I will be digging into it more later tonight when I get home.

The company is located in Nebraska. They are a contract group and I will be a subcontractor for them. I will likely email them and ask them how they handle taxes and that should clear up some questions.

I will let you all know.
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Old 05-05-2019, 02:07 PM
 
660 posts, read 178,592 times
Reputation: 1598
Quote:
Originally Posted by Quietude View Post
"Away from home" implies you have one. That would be your legal domicile and address. If it's something like parents, use it as your permanent address.

State taxes would have to be paid in whichever state you earn the money, and reported in your home state.

Generally, the only issue of residence is state taxes. If you live in Kansas and job-travel all over Nebraska, it doesn't really matter what cities or locations in NB.

There are specific IRS rules about "residence," down to (I believe) days of presence in each location. They wouldn't affect federal taxes but would determine apportioning of state taxes.
If you are in one state 183 days out of the year- that is where you reside.
Some people travel for business , etc.
If they want to claim Fl- no state income tax, they have to prove they “ lived” there 183 days in that year.
People I know have a log book they record their presence and absence...to prove to the tax authority their residence / domicile.
You have to pay tax to a state where you earn your money - and get credit in your residence state when you file tax.
For address you may use post office box- or UPS stores with boxes. Some even let you use their store address and “#” symbol as your unit number as if you are in the apartment..
Check the rules on driving license in the states you are considering as well as auto insurance-

As a subcontractor you are responsible for all tax withdrawals - Medicare, SS, etc- make sure you do not forget that.
Normally if you are an employee- your company pays half and withdraws another half from your paycheck and remits it on your behalf to taxation division.
As a subcontractor you will have to do that ( both half’s)- so make sure when negotiating your pay include that.
Remit your tax payments timely- or you may incur penalties.

https://www.irs.gov/businesses/small...ed-or-employee

Last edited by Nik4me; 05-05-2019 at 02:17 PM..
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Old 05-05-2019, 04:50 PM
 
Location: Wartrace,TN
5,558 posts, read 8,900,643 times
Reputation: 11068
Quote:
Originally Posted by AirDroz View Post
Thank you everyone for the input so far.

I watched a few videos by Bob from Cheap RV Living. Very helpful and informative but his videos are oriented towards retired people. My situation no doubt complicates it but hopefully not too much. I will be digging into it more later tonight when I get home.

The company is located in Nebraska. They are a contract group and I will be a subcontractor for them. I will likely email them and ask them how they handle taxes and that should clear up some questions.

I will let you all know.
You will be paying Nebraska income tax if this is the case. You will be paid by an entity in Nebraska so that is where you owe. It doesn't matter what state you work in; your source of income is based in Nebraska.
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