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    san_usa's Avatar
    san_usa Posts: 2, Reputation: 1
    New Member
     
    #1

    Jan 17, 2007, 06:20 PM
    State tax enquiry
    Hi
    I am working as a consultant for a Texas based consulting firm,the company I am working has clients all over usa so I will be moving from places to places as and when the assignment comes in,so while filing state tax how should I file,as my parent company for which I am consultant is in Texas should I file state tax for Texas or should I need to file taxes for all the states where I did assignements,
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Jan 17, 2007, 08:47 PM
    By law, you are supposed to pay state income taxes for any money earned within the state borders.

    It depends a LOT on your company's tax policy.

    If they follow the state law properly, they should begin withholding state income taxes in the state in which you are located once you have been there for a set period. That set period varies from state to state. Usually, it depends on the amount of money earned within the state borders. If the state taxes are withheld, then there is an audit trail, and you must file a state tax return.

    Due to their huge salaries, major sports stars and entertainers have to pay state income taxes wherever they play or perform, regardless on the length of time they are located in the state.

    If your company has not withheld the state taxes and you have been living in temporary facilities like a extended stay hotel, then you can probably not file a state tax return and not be noticed by the state tax authorities.

    However, if you have rented an apartment and put utilities in your own name, then it is likely the state will eventually notice that you are working and earning within their state borders.

    By the way, Texas has NO state income tax.

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