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  • How do taxes work for telerads?

    Posted by srinella on July 20, 2013 at 1:47 am

    If you live in a state like florida , with no state income tax..but you read cases from other states that do impose a state income tax, do you have to pay tax on the percentage of income you generate from those states even though you live in a state without income tax?  
     
    or lets say you work for a telerad company that pays you a salary..that company is headquared in a a state with income tax but you live in a state without one? 

    nfiorentino_46 replied 3 years, 6 months ago 10 Members · 13 Replies
  • 13 Replies
  • Unknown Member

    Deleted User
    July 20, 2013 at 8:18 am

    Ask an accountant. My understanding is that all income from all sources must be reported on federal and home state tax returns.

    • jquinones8812_854

      Member
      July 20, 2013 at 9:11 am

      Federal taxes as independent contractor…will show up slightly differently based on your setup (IC, LLC, etc) but basically the same tax treatment.
       
      State tax is based on the state where you reside…live in FL, zero tax. 

      • srinella

        Member
        July 20, 2013 at 9:20 am

        my amateur research suggest what you have said.   As far as state taxes go, you pay state tax only to the state in which the work is actually performed.   In other words, if you live in  florida and physically perform the work from a home office in florida, you pay what the state tax rate is in florida (0 in that case).   
         
        Note this is totally different than living in one state and working in another. 
         
        Also, my research shows that some states in the north east have this “convenience vs necessity” rule where they charge you the state tax of where your company is regardless of where you performed the work if it was done out of convenience rather than necessity.  Such a state would be new york . (surprise)

        • Unknown Member

          Deleted User
          July 20, 2013 at 9:57 am

          I’m in telerad and have a professional accountant. I’m set up as an LLC based in Georgia (where I live and work). I read from about 19 states. All income goes through the LLC and is taxed at GA state income levels and subsequently federal taxes. My accountant’s opinion was that the “work” of the interpretation is actually being done by you in your home state – where the images came from is moot from a tax purpose.

          • danielpaulino.md_522

            Member
            January 13, 2021 at 7:51 am

            Hey everyone
             
            Bringing back this thread from the past, rather than restarting a thread.
             
            I see the last response was in 2013.
             
            Does anyone have any new info since then? I am in a similar boat:
             
            I’ll be working from a no-income tax state for my employer (W-2 position) in pennsylvania doing telerads. For those doing telework as W-2, have you been paying taxes to the state where the images are taken?

            • waleed.h.raheem_182

              Member
              January 13, 2021 at 8:50 am

              I am in a similar situation residing and working (telerad) in a state with no income tax. The images are acquired in a state that does have state income tax. I pay no state income tax on the telerad income which is W-2.

              • Chris7549

                Member
                January 13, 2021 at 9:56 am

                I believe in most cases, if you are W2, you pay the state you live and not the state of the employer. An exception would be NY. They expect you to pay their state income tax if you work for a NYS based employer remotely unless the job requires you to work in the remote out of state location. Theoretically may have to pay two states income taxes in some scenarios.

                • jennycullmann

                  Member
                  January 13, 2021 at 7:12 pm

                  Quote from NeuroJewDo

                  I believe in most cases, if you are W2, you pay the state you live and not the state of the employer. An exception would be NY. They expect you to pay their state income tax if you work for a NYS based employer remotely unless the job requires you to work in the remote out of state location. Theoretically may have to pay two states income taxes in some scenarios.

                   
                  Yes, and usually these states have made it crystal clear with an additional law/write-in clause that makes it obvious. Like ballplayers playing in their stadium 5 times  in a year, etc.

                  • lisa.kipp_631

                    Member
                    January 13, 2021 at 8:34 pm

                    Its surprising but there is no clear answer. There are several states (I believe 5?) that require you to pay state taxes if the images were acquired there. Some may surprise you including Nebraska. Some states will give you a credit for taxes paid in other states and some wont. There is the potential for the unlucky to be double taxed. It has been litigated a few times but there has been no clear guidance on the federal level. Possibly this may change with all the other industries going to work from home but I havent heard of anything.

                    • jennycullmann

                      Member
                      January 16, 2021 at 8:14 am

                      In the coming days of tax confiscation, nothing would suprise me, to be honest. But currently there is no doubt that there are thousands, or millions, of 1099 who provide tele with billing from multiple different states – and I don’t think these guys could even possibly know exactly which case came from where. And even if they could, it would be so ridiculously onerous you would just throw your hands up in the air.

                    • y.rajshekar

                      Member
                      January 17, 2021 at 1:13 pm

                      If I teleread for a VA hospital located in NYS from Florida, would it matter that VA has bona fide hospitals in Florida too and I am a federal employee?

                    • nfiorentino_46

                      Member
                      January 21, 2021 at 11:26 am

                      A small nit, the days of tax confiscation have been going on over a century now,
                      what you mean is the coming days of wealth confiscation!  
                      And yes, after watching how states conducted themselves re: their own rules
                      in a recent national event, do you think for 1 minute they are gonna let some
                      “rich” doctor, read “their” cases on “their” patients without making your life 
                      miserable. So yes the correct answer is where your butt sits while you do the
                      interpretation is dispositive. And no, whether the Hospital system, including 
                      the government, has a “sister” facility in the state, where you butt sits, as you
                      read, has no legal effect; but realize the state where the study is acquired may
                      not follow the law, and start harassing leading to potential “audits” “judgments”
                      etc.  This is why when people ask me, “why did you take (and pass) the state bar?’
                      I tell them, just like I did not take years of martial arts to beat people up, I did it
                      to protect myself :))
                       
                       

              • jennycullmann

                Member
                January 13, 2021 at 7:11 pm

                Quote from tad972

                I am in a similar situation residing and working (telerad) in a state with no income tax. The images are acquired in a state that does have state income tax. I pay no state income tax on the telerad income which is W-2.

                 
                I had this question a while back too. I even read the amorphous law of the state with the tax (in general) that clearly had a single line that said if you aren’t working in the state it’s not sourced there. But then you ask accountants an sadly like docs they give you the easy answer so as not to help you much or risk anything. What sucks is that you want the real answer, not a conservative one. Everyone knows that paying a tax is going to be “less risky” than not, the question is can you get away with paying none, the entire point of the question.