JustAnswer > Tax
Ask A Question|Register|Login|Help
JustAnswer

Tax

Ask a Tax Question, Get an Answer ASAP!

Have your own Tax question?

2 Tax Professionals are Online Now
characters left:
Not a Tax Question?

Related Tax Topics:

  • Car
  • ,
  • Law
  • ,
  • Pay
  • ,
  • Owe
  • ,
  • Tax
  • ,
  • File
  • ,
  • Live
  • ,
  • Long
  • ,
  • Mail
  • ,
  • Paid
Bookmark and Share

Question

I work for a company in Virginia. In March I got a license in Nevada and registered my car there. I have a mail forwarding service (not a PO box) that has a physical street address. Since March I've been working remote in several states for the company based in Virginia. I have no permanent residence, just the address in Nevada. Do I have to pay 1) Virginia tax, 2) Nevada tax (none, since they have no state income tax), or 3) taxes in each state I've visited?

Submitted: 31 days and 7 hours ago.
Category: Tax
Value: $15
Status: CLOSED
+
Read More
Posted by LEV 31 days and 7 hours ago.

Answer

Your tax liability is based either on the source of income or on your residency.

If you are working in Virginia - your wages are considered from Virginia sources and are taxable for that state.

If you are a resident of Nevada - all your income - regardless of its source - is taxable for Nevada - however because Nevada doesn't have income tax - that is not an issue in your situation.

If you are working in other states and have income from these states - you will be taxed for these states as a nonresident.

 

Generally - you should file a tax return for a non-resident state (or states) and determine your tax liability based on income sources.

Then - you will file a tax return for your home state. Because the same income might be taxable for two states - you will claim a credit for taxes paid to another state on your home state tax return. But in your situation your home state - Nevada - doesn't have income tax - so your income is not taxable for that state and no credit is available.

 

If you temporary visited any state - you do not become a resident of that state - but because each state has its own law - each situation should be investigated separately.

If you do not live in Nevada - that is not your home state - but when you applied for Nevada drivers license - you declared yourself as a resident of this state - that might be not correct.

 

Let me know if you need any help.

 



Edited by LEV on 10/21/2009 at 4:18 PM

31 days and 6 hours ago.

Reply

"If you are working in other states and have income from these states - you will be taxed for these states as a nonresident."

All of my income comes soley from the company in Virginia. There aren't any income sources in any other state and they don't have any other work locations anywhere else. So does that mean that I don't have to investigate the nonresident issues?

"But in your situation your home state - Nevada - doesn't have income tax - so your income is not taxable for that state and no credit is available."

So does that mean, no matter what we do, we'll still need to pay Virginia state tax?

And if we do have to consider nonresident issues, we may be liable for taxes in other states?

Thanks for your reply!



Posted by LEV 31 days and 6 hours ago.

Answer

All of my income comes solely from the company in Virginia. There aren't any income sources in any other state and they don't have any other work locations anywhere else. So does that mean that I don't have to investigate the nonresident issues?

You wrote above - Since March I've been working remote in several states for the company based in Virginia.

Now you are saying that your work place is only in Virginia... please clarify...

If your workplace is in Virginia - your income is considered as from Virginia sources and is taxable for Virginia. The location of your employer is irrelevant - only location of your work place determines the source of your income.

 

So does that mean, no matter what we do, we'll still need to pay Virginia state tax?
If your workplace will be in Nevada - you will not be responsible for Virginia state tax, but as long as you are working in Virginia - your income is taxable in that state.


And if we do have to consider nonresident issues, we may be liable for taxes in other states?

Yes - if you would have work places in other states or you will established a residency on other states.

 

Let me know if you need any help.

 

31 days and 6 hours ago.

Reply

You wrote above - Since March I've been working remote in several states for the company based in Virginia.

Now you are saying that your work place is only in Virginia... please clarify...

 

You had mentioned "Your tax liability is based either on the source of income or on your residency." I took this to mean that there is a difference between where I reside and where the source of the income is. The source of the income is in Virginia even though I reside in other states. My work is all internet based, so there are no client locations or other offices for my company. They have one office in Virginia and I work remotely for that office.

 

I think I might be confused as to what consitutes a "workplace". Our company only has one physical office.

Accepted Answer

"work remotely for that office" - if that is your physical work location and it is in Virginia - your income is considered from Virginia sources and taxable as such

If your physical work location is in different state - that would be a different issue.

 

The place where you reach remotely over the internet - is irrelevant based on the current tax law - it may be changed in future - but so far your physical location is only matter.

 

Let me know if you need any help.

 

Picture
Expert: LEV
Pos. Feedback: 99.3 %
Accepts: 
Answered: 10/21/2009

Tax Preparer

Taxes, Immigration, Labor Relations

31 days and 5 hours ago.

Reply

Thanks for your help. I didn't know it was possible to owe taxes in Virginia since I don't have a home address there.

+
Read More

Related Tax Questions

  • MY HUSBAND MOVED OUT LAST SEPTEMBER, NO SPOUSAL SUPPORT ...
  • Valuation of life estate and remainder.
  • i own a three family in providence RI 2 of the units were .....
  • Assume a decedent, by Will, creates a Testamentary Trust ...
  • I am filing the 1040A form. My husband died in ...
  • My exhusband is 2 months behind in alimony and ...
  • My boyfriend and I just had a baby- we are not married. My ....
  • Are settlement distributions rerceived by individuals ...



Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.
Question List | Become an Expert | Terms of Service | Security & Privacy | About Us
© 2003-2009 JustAnswer Corp.