Advertisement

Find answers, ask questions, and connect with our community around the world.

  • telerads and taxes

    Posted by dwaynen31 on January 27, 2019 at 2:43 pm

    I was hoping someone could shed some light on this scenario.  I will of course consult with a CPA.  Nonetheless, I was wondering if anyone had any first hand insight.
     
    What if you lived in a state which imposed a state income tax but you’re income was sourced in a state with no income tax. Would it be legal to not pay your state income tax since the income is sourced in a state with no state income tax?
     
    Is this a grey area or are you required to pay the state you live in taxes on income even though it’s sourced in a state with no income tax.
     
    thanks

    jennycullmann replied 3 years, 9 months ago 10 Members · 14 Replies
  • 14 Replies
  • Dr_Cocciolillo

    Member
    January 27, 2019 at 3:14 pm

    You pay state income tax where you reside

  • kaldridgewv2211

    Member
    January 27, 2019 at 3:16 pm

    You report income where you live. I think the diff is you’d get credit or no credit. Depending on what other states collected income tax(or didn’t).

    • ruszja

      Member
      January 27, 2019 at 5:39 pm

      As a general rule you pay tax either where you are domiciled or where the work was performed. Entertainers who have shows in 20 states file 20 tax returns.

      If you want to save state tax as telerad, move to a no income tax state: TX, TN, FL, SD, WA, NH.
      They will get you on other taxes, but you can choose not to own that 10000sf McMansion or buy a new car every year.

  • leboyd1

    Member
    January 28, 2019 at 11:01 am

    Quote from Rad8tr

    Is this a grey area or are you required to pay the state you live in taxes on income even though it’s sourced in a state with no income tax.

    thanks

    This part is correct, except it is not a grey area. Also, if you worked in state that has income tax (which I do) and live in a different state which also has income tax (which I also do), you would have to file in both states as well as federal. I usually end up paying both states, since the one where I earn the income is generally a lower overall rate. I am clearly not in the optimal tax situation…

    • Lee

      Member
      January 28, 2019 at 11:08 am

      Quote from NewEngRad

      Quote from Rad8tr

      Is this a grey area or are you required to pay the state you live in taxes on income even though it’s sourced in a state with no income tax.

      thanks

      This part is correct, except it is not a grey area. Also, if you worked in state that has income tax (which I do) and live in a different state which also has income tax (which I also do), you would have to file in both states as well as federal. I usually end up paying both states, since the one where I earn the income is generally a lower overall rate. I am clearly not in the optimal tax situation…

       
      This is my understanding as well. If you’re lucky, then your employer will be able to withhold to whatever state you’re domiciled in, if applicable, because that’s generally simpler. If you’re really lucky, then the state where you work will give you a tax credit for what you paid to the state where you live, meaning your overall tax burden won’t be higher.
       
      Oh, and this may be obvious, but you file as a nonresident in the state where you work.

      • jennycullmann

        Member
        October 19, 2020 at 10:49 am

        Considering a job … w2 or 1099
         
        If I am a resident of a no income tax state and read images for a group (shift work let’s say) located/with patients in a state that has income tax, do I have to pay the source income state tax? Does it matter that I am licensed there and that somehow makes me have a “nexus”? Are accoutants just cautious so they will tell you that theoretically they could claim nexus and charge you the taxes or back taxes with penalties?
         
        Thanks. Even as a w2 could you theoretically get a refund from the state if your employer withheld, but you were in, and doing the work from, a no income tax state?
         
        I appreciate anyone’s help or advice, thank you in advance.
         

        • lisa.kipp_631

          Member
          October 19, 2020 at 11:26 am

          You need to consult a cpa. I work for a company in one of the stingy states that requires state income tax is paid to them. Im lucky enough to live in a state that will credit me my income tax paid to my work state. This is not a guarantee and there are some situations where you can be double taxed.

          • jennycullmann

            Member
            October 19, 2020 at 3:16 pm

            Thanks brickster

            • bradford.gildon

              Member
              October 19, 2020 at 4:15 pm

              I think if you live in a no-state tax like Texas you only need to pay tax for work in ny, ct, and a few others. They are the only ones that use “convenience rule” for telework.

              • jennycullmann

                Member
                October 19, 2020 at 4:32 pm

                Quote from BlackTea

                I think if you live in a no-state tax like Texas you only need to pay tax for work in ny, ct, and a few others. They are the only ones that use “convenience rule” for telework.

                 
                So it’s essentially the confiscatory states who also have made particular laws to get ballplayers to also pay them money for traveling to their stadium for a 3 game stand or so. Would it be a CPA from that very state that could give you a definitive answer?

                • mpezeshkirad_710

                  Member
                  October 24, 2020 at 12:46 pm

                  I’m going to meet with my accountant this week to get clear answers on this with my specific states.  It might make a difference in where I choose to live long term.

                  • ghuang920

                    Member
                    October 24, 2020 at 2:41 pm

                    Quote from Takayasu

                    I’m going to meet with my accountant this week to get clear answers on this with my specific states.  It might make a difference in where I choose to live long term.

                    I think thats a good idea. Consult with the pros. Over a long career, a decent amount saved in taxes is huge, especially if youre flexible where you want to live and stay. 

                    • mpezeshkirad_710

                      Member
                      October 24, 2020 at 5:35 pm

                      If more rads and other workers start going remote (which seems to be happening) these state vs state tax considerations will really become significant.
                       
                      I fear governments will try to take their cuts though.  SALT deduction has been capped so federal government is no longer subsidizing state taxes.
                       

                    • jennycullmann

                      Member
                      October 26, 2020 at 8:20 pm

                      Yes, the biggest worry is that you can technically have a winning argument, even written in state X law code but they have that whole “we say so” thing that makes it a case of possible “guilty until proven innocent.” I think mostly, like i said above, they have to mark particular legislation dealing with our scenario. The oddball thing is that there are clearly tons of rads that work for companies as both 1099 and w2 and they source their income from multiple different states but as far as I know, they only pay their home state rate.