Ask Experts Questions for FREE Help !
Ask
    Raul08's Avatar
    Raul08 Posts: 1, Reputation: 1
    New Member
     
    #1

    Feb 5, 2013, 05:00 PM
    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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Feb 5, 2013, 10:49 PM
    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.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #3

    Feb 6, 2013, 05:49 AM
    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.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #4

    Feb 6, 2013, 06:44 AM
    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.

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!

Assume that the corporate tax rate is 35% and the personal tax rate is 38%. The fou [ 0 Answers ]

Assume that the corporate tax rate is 35% and the personal tax rate is 38%. The founders of a newly formed business are debating between setting up the firm as a partnership versus a corporation. The firm will not need to retain any earnings, so all of its after-tax income will be paid out to its...

What is the after tax cost of debt if interest rate is 13% and tax rate is 20% [ 2 Answers ]

What is the after tax cost of debt if interest rate is 13% and tax rate is 20%

Interest rate 13%, Tax rate 0% -Calculate the after tax cost of debt [ 2 Answers ]

Interest rate 13% tax rate 0%. Calculate the after tax cost of capital

Paycheck without Tax Withholding, how can I pay the tax? (Chinese F1 student on CPT) [ 8 Answers ]

I am currently doing an intern holding F-1 visa and on CPT in New York state. My employer didn’t withhold any tax from my paycheck. She said I am treated as an independent contractor. My income in the CPT period will be $4800, according to 1040-ES (NR), the tax will be $4800*10%=480, which is...

F1 on cpt nj tax [ 1 Answers ]

Hey- I was on Co-Op (CPT) in NJ. And I earned 31018$ last year. On W2 it says Federal 4500 Social 2000 Medical 450 Can u tell me why it says social and medical? Do I need to pay that?


View more questions Search