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-   -   Cpt tax rate (https://www.askmehelpdesk.com/showthread.php?t=732491)

  • Feb 5, 2013, 05:00 PM
    Raul08
    Cpt tax rate
    Hi,

    I am working on CPT.

    I have been living in California since May 2012 and that's the same time I started working as well. I used to work remote from California for a New jersey based company. On my W2 the addresss is my old NJ address.

    Then the company moved to Texas, but I was still working remote from California. On my W2 is the company's new Texas address.

    On all my bank doc. And license is of califonia.

    1. Where do I file my returns?Which states and how? If I have to file in California, how should I do it as I do not have any withhold taxes (no W2) here.

    2. If not in California than will there be any issue as I have my license and bank doc stating California address.

    3. I know that Texas has no state taxes, so I do not need to file there but will there be any issue by IRS for other states?

    4. What is the tax percentage I should be paying as on CPT.

    Thanks

    Raul
  • Feb 5, 2013, 10:49 PM
    AtlantaTaxExpert
    Raul,

    If you live and work in California, THAT is where you file, even if no California taxes were withheld.

    If you continue to work in California and your employer refuses to withhold California taxes, you need to make quarterly estimate tax payments for 2013.
  • Feb 6, 2013, 05:49 AM
    MukatA
    If you live and work in California, all your income is taxable in CA. Any income earned while present in a state must be reported to that state.
    You worked for NJ employer, it is not treated as NJ income and is not taxable in NJ.
    TX does not have state income tax for individuals. Still you must report this income on your CA tax return.
  • Feb 6, 2013, 06:44 AM
    AtlantaTaxExpert
    MukatA makes a good point. After a certain period in a state, usually one year, the move to that state ceases to be temporary, and the state requires you become a resident for tax purposes, which makes ALL world-wide income subject to the state income tax.

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