Temp work out of state....tax ???

[mrvette]

Some friends sent to Ga. for temp work, they live in Floriduh.....and so the company sent them there, to a client needing a bail out.....and they withholding GA. income taxes......

Watt to do???:issues:

[Mike Mercury]

State Tax Obligations

https://www.justia.com/covid-19/taxes-and-covid-19/taxes-and-working-remotely-in-a-different-state/

A worker may have tax obligations in any state where they reside and possibly the state where their employer’s worksite is located.

A permanent remote worker will file their personal income taxes in their state of residence, whether they are a W-2 employee or a 1099-NEC independent contractor.

If your W-2 lists a state other than your state of residence, you will file a non-resident tax return to that state as well as a residential tax return to your home state. Your home state may credit any income taxes that you pay in the other state.

Most states require a personal income tax return after a worker spends a certain amount of time working in the state, regardless of where the worker is permanently domiciled. For example, Arizona requires a tax return after 60 days of working in the state. New York requires a return after just one day of working in the state.
Multiple States, Multiple Tax Returns

If you reside in one state and work in another state, and your employer’s worksite is in a third state, you may have to file as many as three tax returns.

If your home state does not require income taxes, you will only need to file a tax return to the state listed on your W-2. If the state listed on your W-2 is the same as your home state or is one of the other states with no income tax, you will not have to file a personal income tax return for any state.
States Without Income Tax:
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming

State Tax Agreements and Exceptions

Thirteen states have instituted pandemic exceptions for taxpayers. If a taxpayer temporarily relocated to one of these states due to the pandemic, they will not be liable to that state for income tax.
States With Pandemic Exceptions:
Alabama, Georgia, Illinois, Indiana, Massachusetts, Maryland, Minnesota, Mississippi, Nebraska, New Jersey, Pennsylvania, Rhode Island, South Carolina

Some states have reciprocity agreements. This means that the states in the agreement have made paying taxes to each state easier on the worker. Agreements are more common between commuter states, such as Illinois and Indiana or Virginia and Washington, D.C. Reciprocity agreements may include tax credits or even exempt a worker from having to file a non-resident tax return at all.

Some states follow the “convenience of the employer” rule, which requires a worker to pay income taxes where their employer’s office is located because the employee works remotely for convenience’s sake rather than necessity. These states are Arkansas, Connecticut, Delaware, Massachusetts, Nebraska, New York, and Pennsylvania. This means that under certain circumstances, a person might be taxed both where they work and where their employer’s office is located, resulting in double taxation without any tax credit.

For example, if Jonathan works from his home in New Hampshire but is employed by a company in Connecticut, he will pay Connecticut income taxes under the convenience of the employer rule, even though his home state of New Hampshire does not have income tax.
Remote Work by Necessity or Convenience?

Depending on a state’s definition of working remotely by necessity or convenience, the coronavirus pandemic and a state’s travel restrictions may affect which category applies to a worker. Taxpayers who are unsure about their status should consult with a tax preparer.

Massachusetts has altered its tax scheme specifically in response to the pandemic. Massachusetts workers performing services outside Massachusetts due solely to the state of emergency are treated as though they remained in Massachusetts for tax purposes. Massachusetts will also award a tax credit for workers who started working in the state of Massachusetts as a result of the state of emergency, although they continue to incur tax obligations in another state.

and

https://www.cnbc.com/2020/09/08/hiding-from-the-pandemic-in-another-state-prepare-for-tax-probmes.html

[ZipZap]

I have done non-res taxes many times. While it's a PITA, the major tax software companies do a good job. If I take your story as containing all relevant facts, as long as the workers did not take up residence in GA, then it should be pretty easy. Just file non-res in GA and file res in FL.

[DJ_Critterus]

I have done non-res taxes many times. While it's a PITA, the major tax software companies do a good job. If I take your story as containing all relevant facts, as long as the workers did not take up residence in GA, then it should be pretty easy. Just file non-res in GA and file res in FL.

It's easier since we don't pay state income tax here in FL. The demofelons want to change that, though.

[Bill]

It's easier since we don't pay state income tax here in FL. The demofelons want to change that, though.

Texas also has no state income tax. We do,however, have extremely high property tax, although that gets better once you turn 65.

[ZipZap]

It's easier since we don't pay state income tax here in FL. The demofelons want to change that, though.

Agreed. If they want to get the money back from GA, as I had to this year from CA, they need to file a non-res. The pension administration company had me as CA up through April, and pulled CA withholding. I actually declared residence in CO as of 1 January 2021. Paid ~5% on state tax as opposed to ~10%.

Gene - Just tell them to buy Turbotax and answer the questions...

[mrvette]

Tanks guyz, Mike for certain.....your post sent on to affected parties.....

:seasix: