Introducing Alvin Brown, Tax Attorney and Trucker Taxes Forum Supporter

Hello, I live in Fl but drive for a company based out of NC and have a question on state withholding. Evidently NC law reads that even though I am not a resident they take withholding. My question is there a way to reduce the ammount they keep?.. last year I only got back roughly half (about 1300 dollars)out of 2500-3000 they took out. And even though the company is located in NC, a lot of the work I do is in other states...does that make a difference? Thanks

 

They neither one get on here anymore.

 

As a trucker working in interstate commerce, your company should be figuring state tax on the state you live in. Or might I say what state your CDL is in, because that's what they use for proof of state of residency. If you have a FL CDL, then your employer is wrong withholding NC state taxes out.
As it is now, NC knows no different and treats you as a non-resident working in the state. If you were like in the construction industry, working in NC, then yes, they take out state taxes then. Or say you lived across the state line and commuted to work in NC, then they would take out taxes. But not as a interstate trucker. That's the way it is everywhere I seen. I don't think NC has their own seperate thing on truckers. Your employer works there, not you. Either way, you can deduct state taxes off your federal return.

I would seek further advice.

 

Condo, I've asked my employer about it several times...it could be they are misinformed. I did talk to a lady with the NC dept of Rev and specificaly said I was a truck driver, she said I still have to have it taken out. Asked my accountant about it last tax season and he said this was right. I don't know who else to check with.

 

The more I look at the law in NC, I believe the trucking company is incorrect.

The law requires an employer in NC to withhold NC income tax for payments to persons performing work in North Carolina.

The actions of the truck driver who is a resident of another state are not subject to the state of NC withholding. They are not performing work in the state.

The withholding claim form does not allow for any exemption to withholding for work performed in the state.

 

Roadmedic I appreciate you checkin into this..and I think you hit on the problem. The company I drive for is a small scrap-recycling yard in Charlotte, so probably 30 to 40 percent(2-3 oads a week) of the loads I haul I am "Performing work in the state" ( I may load in FL, deliver to our yard in Charlotte, and then go load to Loiusville, load elsewhere and then come back to Charlotte). So we probably fall into kind of a grey area as far as the way the law reads.