Question
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Jun 20, 2007, 04:47 PM
| | New Member  | | Join Date: Jun 2007
Posts: 2
| | | Per Diem in CA
I have received a daily per diem from a company I work for in San Francisco. I have now been in CA for a year, but still travel home for a week every month. The company has now taken my Per Diem saying that the new CA law states that after a year of subsistence it can be taxed. I have looked for documentation stating this, with no luck. Is it true? and if so are there ways around it?
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Answers
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Jun 21, 2007, 05:09 AM
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#2
| | Ultra Member
Join Date: Apr 2007 Location: Illinois, US
Posts: 1,929
| I don't have an answer about the per diem, but just curious: it seems you are now a CA resident (having spent > 6 months there). So you're filing CA taxes as a resident, and your old home state as a non-resident - is that right? |
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Jun 21, 2007, 07:21 AM
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#3
| | | Tax Expert
Join Date: Feb 2005 Location: Atlanta, Georgia
Posts: 9,787
| Go to the website for the CA Franchise Tax Board. You can probably get a synopsis of the law from there. | |
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Jun 21, 2007, 06:42 PM
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#4
| | New Member
Join Date: Jun 2007
Posts: 2
| Quote: | Originally Posted by ebaines I don't have an answer about the per diem, but just curious: it seems you are now a CA resident (having spent > 6 months there). So you're filing CA taxes as a resident, and your old home state as a non-resident - is that right? |
yes as a resident but mainly b/c i made all my money for the year in CA and have nothing to claim as income in NC. | |
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Jun 22, 2007, 08:47 AM
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#5
| | Ultra Member
Join Date: Apr 2007 Location: Illinois, US
Posts: 1,929
| In that case I would think (though again, I don't really know how the details work in CA) that the per diem would be a taxable benefit paid by your employer, since while you are in CA you are "home," and therefore not incurring any business-related travel expenses. | |
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Jun 25, 2007, 01:19 PM
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#6
| | | Tax Expert
Join Date: Feb 2005 Location: Atlanta, Georgia
Posts: 9,787
| I tend to agree with Ebaines. You in fact are living in California on a permanent basis now, especially if you have not maintained an apartment in NC. | |
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Feb 19, 2008, 08:01 PM
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#7
| | New Member
Join Date: Feb 2008
Posts: 8
| I live in Arizona and work in San Diego, CA.... Arizona is my home-of-record... I had per diem which ended. I am not a resident of CA, just working here in my mind and on paper.
I was also told by my agency that if I take off 2-3 weeks, we can end and restart my contract WITH per diem.
Rick | |
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Mar 5, 2008, 05:04 PM
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#8
| | | Tax Expert
Join Date: Feb 2005 Location: Atlanta, Georgia
Posts: 9,787
| Rick:
You can do that, but it is a risky proposition. Both the IRS and state tax authorities take a holistic view of your circumstances when it comes to such arrangements,
If you just take a few weeks off to avoid the tax consequences of getting per diem over a year, the tax authorities will recognize that tactic for what it is and impose the tax anyway. | |
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Mar 7, 2008, 04:35 PM
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#9
| | New Member
Join Date: Feb 2008
Posts: 8
| I ended up going to a tax place.... between my temp job out of state plus the small business I run, we got it all covered nicely.
Thanks for all the comments ........
Rick | |
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