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    TaxDmer's Avatar
    TaxDmer Posts: 1, Reputation: 1
    New Member
     
    #1

    Sep 2, 2008, 10:11 PM
    Tax Allocation Request
    Hi,

    I am an IT consultant and working outstate since this June. I live in California but working for a client at Hartford, CT. I fly into Hartford either on Sunday or Monday and leave normally on Thursday. I recently got an email from my company to ask me to file "Tax allocation request". Anyone knows why I need to file it and how do I avoid it? I am not a big fan of doing tax... so I would like to try to make my tax as easy as possible and this tax allocation request seems make my year end tax return become complicated. Would they take out more tax on my payroll? Thanks for reading this and any help is greatly appreciated! :-)


    TaxDmer
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Sep 3, 2008, 11:48 AM
    TaxDmer:

    The tax allocation request is to determine how much of your pay is allocated to Connecticut.

    You see, Connecticut wants to tax the income you earned while you were IN their state. California will tax that income as well, but will give you a credit for the CT taxes paid so you do not suffer double taxation.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #3

    Sep 3, 2008, 03:02 PM
    Read about working in two states
    Your U.S. Tax Return: Working or Living in Two or More states

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