I recently moved to Nevada which have no state taxes, however, I am a consultant and work out of state M - Th. How will I be taxed?
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I recently moved to Nevada which have no state taxes, however, I am a consultant and work out of state M - Th. How will I be taxed?
Depends on the state to which you travel for work. If it is California, it has non-resident income tax laws, which require withholding of California state income taxes from your earnings. You will need to check the California 540NR booklet to see if you will be charged tax in California. Unfortunately, I can't seem to find a good link for you to view. However, if it is California, you have to file tax forms every year if you earn income in that state, regardless of where you actually live.
Here is the California franchise tax board url. I know I'm being presumptuous to guess California, but in case I guess correctly, here you go.
2006 Form 540NR Long / Short, Nonresident or Part-year Residents
It does not matter which state.
Federal tax court rulings have long established that the states have the right to tax income earned within their borders, and each state does so with varying degrees of enthusiasm and effectiveness. Much depends on HOW MUCH you earn while working in the other state.
Unfortunately, California is REAL HIGH on the effectiveness scale, so pay attention to what GoldieMae has provided.
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