Hi all,

My employer is from TX where there is no state tax and my permanent residential address in US is also of TX different from my employer address but a same city like for eg: my employer address is: ABC street , Houston, TX and my permanent address (which is my sisters) address is XYZ street, Houston , TX.

But I worked in many states other than TX which have state taxes imposed and at the same time I haven't leased an apartment, or paid any utility bills in the states in was living during 2006. Even my car is registered in TX.

Are there any adverse consequences if I do not pay state tax and show that I worked in Taxas all year round. Do they have a way to retrieve in which state I was in during specific time.

As deadline is coming near I would really appreciate if tax experts answer this question.

PS: I have International status in this country and employer will apply for a GC in a near future.

Thanks.

Hi all,

My employer is from TX where there is no state tax and my permanent residential address in US is also of TX different from my employer address but a same city like for eg: my employer address is: ABC street , Houston, TX and my permanent address (which is my sisters) address is XYZ street, Houston , TX.

But I worked in many states other than TX which have state taxes imposed and at the same time I haven't leased an apartment, or paid any utility bills in the states in was living during 2006. Even my car is registered in TX.

Are there any adverse consequences if I do not pay state tax and show that I worked in Taxas all year round. Do they have a way to retrieve in which state I was in during specific time period.

As deadline is coming near I would really appreciate if tax experts answer this question.

PS: I have International status in this country and employer will apply for a GC in a near future.

Thanks.
HI
It is always advissable pay taxes for the state you worked. You can ask your employer to provide W2 for each state you are worked and file the returns accordingly

I agree with Ravindrah in part. It depends on how long you were in each state and how much money you made.

Entertainers and professional athletes MUST pay the state incomes taxes in the states where they performed. The time makes no difference there because of the size of the salaries involved.

However, if you worked in a state for only six weeks, then moved to another state for another six weeks, and so forth, it is likely that the income earned is so small that the combination of your personal exemption and the state standard deduction would result in no taxes being due. This is true even if the exemption and deduction were pro-rated.

The general rule I follow is that if the client is in the state for less than 3 months, than no state tax would be due. Once you hit the 3-month point in time, then you should consider filing a state income tax return.

You can always file a Non-resident tax return in the states that you worked in to try to retrieve some of the taxes that you paid in that state. I agree with ATE, that it might not be worth the price of having a tax return prepared for you by a professional, because it would cost you more to have the state return prepared for you than what you would might actually get in a state refund. But if you want to send away for the tax return forms and try to get a refund by filing it yourself, then go for it. But sometimes it's very complicated to do each state return and it takes a lot of time to accomplish. That's why most people don't bother trying to get Non Resident state refunds. They just let the state keep the money.

Excellent point, Mobea.

This year I have been paid multiple time to prepare state tax returns that resulted in minimal tax refunds for which my fee exceeded the state refund.

However, if the state gets a W-2 that shows ALL of the money earned in every state, the state will likely consider ALL of the money to be earned within their state border UNLESS they receive a state tax return (along with copies of all other state tax returns) that shows them how the money is pro-rated between the states.

Sometimes, paying the fee to keep the records straight and keep you out of trouble IS worth the money.