Ask Experts Questions for FREE Help !
Ask
    ybzhang88's Avatar
    ybzhang88 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Apr 25, 2008, 02:01 PM
    Which State Tax to Pay, NJ or NC ?
    Hi,

    I am a Chinese citizen, holding a H-1B work visa with a company incorporated in New Jersey. Our company is an IT consulting company, I am sent to different states to perform the service, usually on a short term basis. I was assigned to work on a project for a big company in Charlotte, NC starting from 04/2004 to 12/2004. During that time, I rented an apartment in Charlotte, NC, also bought an used car and had a NC drivers license.

    Since the nature of our company's business requires its consultants like me to travel to client's site in different states to perform the service on a short term basis, my company always deduct New Jersey state tax for me, and I always claim New Jersey as my state of residency, and always filed NJ state income tax.

    Now the problem is that North Carolina Department of Revenue is asking me to file income tax for the year 2004. They even filed a tax lien against me in the court.

    My question is, should I really file the NC state income tax? Considering my assignment in NC is short term, and I never have any intention to be a resident of NC. What should I do?



    Thanks,

    H1-B Tax Payer
    delite's Avatar
    delite Posts: 202, Reputation: 3
    Full Member
    		  
    #2

    Apr 25, 2008, 08:56 PM
    You may need a carolina tax advisor. It appears your nexus is in nj.however you do business on NC,wherein you may subject to taxation on your income earned in nc.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Apr 26, 2008, 06:49 AM
    If you work in any state and have an income, then you must file tax return.
    You must file NC tax return. Then on the NJ tax return where you reported your full year income, you should have claimed credit for the taxes paid to NC.

    Now you must file NC state return for 2004 and pay the taxes.
    You then file amended tax return for NJ, but may be it is too late. Normally any refund claim must be filed within 3 years of regular due date. For NJ, check at the NJ web site.
    ybzhang88's Avatar
    ybzhang88 Posts: 2, Reputation: 1
    New Member
    		  
    #4

    Apr 28, 2008, 08:13 AM
    Thank a lot for your advice. Looks like that I will have to file the 2004 NC income tax and hopefully to remove the lien from court.

    I checked the NJ tax website, indeed, I can not amend my 2004 tax return anymore, as it has been more than 3 years since I filed the NJ 2004 tax return in April, 2005.

    Now I will have to pay state tax twice, and realize that why we need lawyers.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #5

    Apr 28, 2008, 08:32 AM
    No you don't need lawyers; you needed professional advice.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Part Year State Return and Unemployment Compensation from another state [ 1 Answers ]

I was living in Florida when I lost my job in June 2007 and started getting unemployment compensation from the State of Florida. I moved to Boston, MA in August 2007 and continued receiving the unemployment compensation from Florida. I got a new job in November 2007 in Boston, MA. So, my...

State taxes on out-of-state short-term contract [ 1 Answers ]

Hi, Here's my situation. Facts: I am a consultant for company X (W-2 arrangement),which is based in New Jersey, where I was hired for a 6-month contract in New Jersey to perform work for one of their clients--company Z. I am a current resident of Arizona where I have a house and I plan...

Can wife move out of state with child after divorce and residency in state [ 2 Answers ]

My wife and I are living in Ohio, have been residents for 9 months and have a 14 month old child. If we divorce and she would get custody, could she ever move out of the state

2 states: Can I credit state tax of one state to other state [ 1 Answers ]

I have 2 W-2. One from job in Mass. Mass state tax is withheld in that W-2. Then I moved to NC and got a new job in NC. NC state tax is withheld in this second jobs W-2. Both W-2 only have state tax withheld from their corresponding states. So can I credit taxes of one state to another and...

Federal return collected by state for state liability [ 1 Answers ]

I live in wi and filed married jointly I owe the wisc. Dep. Of revenue money but I have paid off the IRS . I filed my fed. Return electronicly and it was accepded, can the wisc .dep. Of rev. take my fed tax return? Or will my fed return be deposited in my account that I have specified with my...

View more questions Search