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? would i have to pay OR tax? Isn't there some exemption for pilots? thanks

 

[Flyer2000]

California is famous for this tax tactic. Something to do with if over a certain percentage of the flight was in CA, then you must pay CA income tax on it. We at SkyWest have had numerous commuters hit with the same letter you have.

 

[snow-back]

They're fishing.

 

[Daedalus]

My wife is a CPA and I attended a California tax seminar with her about two years ago. The person teaching the course was supposed to be a specialist in this particular area and after the seminar I went up and spoke with her and asked her this very question. According to her, the California franchise tax board can assess income tax against non-resident airline pilots if they fly more than 50% of their time (revenue passenger/cargo flights) within the state borders of California. With that said, the responsibility for managing this requirement is your airline's payroll office. If California has a beef with you not paying your taxes they should also be in contact with your airline as well.

DISCLAIMER: I'm not a tax professional so take this information with a grain of salt and get your own expert advice to be sure...good luck.

 

[trip]

I went through this years couple years ago, fishing indeed- I sent a letter stating that less than 50% of my flying was in CA and I referenced the state publication. Never heard from them again.

 

[ghostrider16]

yeah i am screwed, i fly 75% in the state. i guess Arnold needs a new sidecar!