pilot tax

[ghostrider16]

this has probably been talked about but.....say someone lives in Washington State and is based in California with an airline. Your company only takes out california disability tax along with all the federal crap. Then you get a letter in the mail saying that you owe California income tax on every flight that was a California to California flight, say SFO to LAX for example......anyone have experience on this? that seems silly since what if i was based in california but lived in washington but flew a bunch of PDX to EUG flights? do you have to pay tax to OR? Isn't there some exemption in the Railroad Transport ACt?
thanks

 

[captain dad]

I am curious about this also and am looking into this. I am now back in this situation myself for 2007. I always believed and have filed in the past, taxes only for the location of my permanent address. I know some NWA pilots got in trouble a few years back for taken advantage of lower taxes out of there base but coulndn't prove residence in there base. I know there are always exceptions to rules and may vary from state to state for state taxes. I use a guy named Nick at Romer and Company. He handles all my tax stuff and does a real good job.

http://www.romerlaw.com/

 

[Speedtape]

The feds interpret your tax home as your base.

The states have different rules, sometimes. In your case, the state can tax you on all income earned while working within that state,ie., LAX/SFO.

If you were based in LAX and all your destinations were outside the state, they could not tax you as long as you spent 80% of your time outside the state while working. However, each state has a little different twist as how they like to interpret it.

I would consult with a CPA/Tax attorney within California for the specifics and one that is familiar with transportation workers, if possible. It would be worth the money to either save what you do not need to pay, or to prevent penalties on what you are not presently paying but, by law, owe.

Don't rely on pilot feedback for this crucial information! You will get 10 different versions, as most of us are looking for anything that justifies not spending our money on taxes.

 

[John Pennekamp]

And ask your accountant and lawyer why you fall under the jurisdiction of the laws of the state of California, when you're a legal resident of Washington. I've never heard of such a thing where a state taxes you for all routes that fall within the state. So what are you supposed to do, go back and sort out every flight that never left the state and add it up? That's a ridiculous tax burden.

As for the NWA guys, I'm pretty sure their residence was MN, but they owned a vacation house in FL and used it as their address since FL has no state income tax. MN came after them for dodging MN income tax.

 

[Airboss]

This pilot didn't pay taxes.
http://www.givemeliberty.org/RTPLawsuit/Update08-09-03.htm
http://www.givemeliberty.org/RTPLawsuit/Update08-09-03.htm

 

[rogerwilcoout]

And ask your accountant and lawyer why you fall under the jurisdiction of the laws of the state of California, when you're a legal resident of Washington. I've never heard of such a thing where a state taxes you for all routes that fall within the state. So what are you supposed to do, go back and sort out every flight that never left the state and add it up? That's a ridiculous tax burden.

As for the NWA guys, I'm pretty sure their residence was MN, but they owned a vacation house in FL and used it as their address since FL has no state income tax. MN came after them for dodging MN income tax.

So, if I was a train engineer I would have to pay taxes if I rolled through their frucked up state? I think not. A truck driver that happens to drive through the state on their way to New Mexico - nope again. Prison guard truck transporting prisoners form one state to another and has to traverse Ca. - uh I would say no again. If for any other reason because precedence (spelling?) has been established. But I WOULD definatley go talk to a tax guru who knows transportation worker laws.

 

[ghostrider16]

i talked to my airline and they sent me a breakdown on my flying, total and CA to CA....they have heard of this before and they don't offer much advice as how to get off the hook. so if your company can't provide the info for you than you need to go back and add it up! they only knew about me since my company took out CA state disability from my check....other states have no idea that i am flying in their turf so they won't bother with the taxes...

 

[indianboy7]

http://www.ftb.ca.gov/law/legis/03_04bills/SB1172_020404.pdf

http://frwebgate3.access.gpo.gov/cg...ISdocID=63827025213+0+0+0&WAISaction=retrieve

these links pretty much show how california gets away with it....it's written in the federal code........I guess every state could do it, they just don't pay someone to find obscure crap like this......I'd say get a tax lawyer/accountant and let them figure it out...sounds too complicated to do yourself......You definitely don't want to feel the wrath of the People's Republic of California......... imp:

 

[belchfire]

You have to go at it at both the federal and state level. First of all you need a good aviation tax person. My ex-company's over zelous, vindictive hr person tried to start withholding MO taxes cause I was "based" in MO.

There is something that pertains to transportation workers that a domicile state can only claim income taxes if 1/3 of your work time is performed within that state-sorry I don't know the reference but there are going to be aviation tax guys in SEA with all the AK types that live there.