Tax Issues with an Employer

[kb0zke]

Ronbo, I've seen our "home" there in SD. It is one of many spaces about 10" wide x 12" deep x 2" tall. No, we don't actually fit in that space, but that is our legal home. Those who use Escapees as their legal address probably have a similar "home."

 

Our real home is about 340 square feet - and we still manage to lose things in it! (That 340 square feet is figured as a 40' long motor home that is 8.5' wide. There are no slides to complicate things.)

[GlennWest]

I still work full time and also travel full time. From the way I understand this is what this topic is. One cannot deduct lot rental, mileage, food, etc. if you don't have a residence with some living quarters. One has to have a home other than their RV. My decucations yearly is more than I have in my home. The land was as much as building and concrete pads but I consider this all an investment also. May sell when I retire hopelfully at a profit.

[RVdreamingTelecommuter]

Yes, I know I could "move" to a state which does not have an income tax, but I was told I would then have to pay Michigan taxes if there is no agreement. The positive thing about being an Ohio resident is that my license fees and insurance costs are very low there. And I like my son handling my mail.

 

This is very different than what I understood as the rule for telecommuters. Unless Michigan has a special rule for telecommuters, my understanding is that states cannot charge permanent out-of-state employees with in-state income taxes. The rule you describe is most likely for employees who physically live in a no-income-tax state (for example New Hampshire) but commute to company in an income-tax state (for example Massachusetts).

 

For telecommuters, it's mainly about where you are physically working from and I think there's a rule that the company does not have a dedicated space (office, cubicle) for you in the company building.

This is just my experience telecommuting for many years, YMMV.

[Kirk W]

For telecommuters, it's mainly about where you are physically working from and I think there's a rule that the company does not have a dedicated space (office, cubicle) for you in the company building.

There is no standardized rule about state taxes. Each state has their own personal income tax laws, ranging from places like TX, WY, FL, SD, WA, NV, and AK which have no state income tax at all to CA and HI where personal income tax can exceed 10%. The laws vary just as widely in how they are collected and who is expected to pay them. You need to concern yourself with the laws of both the state where you are working and also the one you are physically in while working, as well as the laws of your state of domicile. There is no simple rule that covers everyone all of the time.

[pugsly]

I think you need to get a lawyer. You may be able to clarify some things retroactively.

 

For most of my employment, I always had a contract that made it clear what my home base / address was and that if my employer requested me to be other places for their convenience, well that was just what it was - me going someplace at their request, not moving.

 

I am not a lawyer, but I did use one to avoid the sort of complications that you seem to now be encountering.

 

Good luck with sorting it all out - and definitely consult with a better authority than the internet on this one!

[R. Walter]

I think you need to get a lawyer. You may be able to clarify some things retroactively.

 

For most of my employment, I always had a contract that made it clear what my home base / address was and that if my employer requested me to be other places for their convenience, well that was just what it was - me going someplace at their request, not moving.

 

I am not a lawyer, but I did use one to avoid the sort of complications that you seem to now be encountering.

 

Good luck with sorting it all out - and definitely consult with a better authority than the internet on this one!

 

You can spend your money on a lawyer if you want, but a good tax accountant would be the better idea. This subject matter is not a new area of law, but is well established, albeit with state-to-state variations.

[pugsly]

 

You can spend your money on a lawyer if you want, but a good tax accountant would be the better idea. This subject matter is not a new area of law, but is well established, albeit with state-to-state variations.

 

Good point. The lawyer I've used for contracts is also a CPA and very familiar with tax law.

[richfaa]

Regarding Ohio. We winter in Florida and there is no reciprocity Of course Florida does not have a State income tax. We pay Ohio State tax and after the allowed deductions it is not all that bad. Registration fees for vehicles are just about the same Ohio/Florida.

 

If you have property in Florida you will pay taxes on it as in any State.We find that although Florida does not have a State income tax they tax about everything else. There is really no advantage for us to change our domicile from Ohio to Florida.