State income taxes in N.D.?

Discussion in 'Trucker Taxes and Truck Financing' started by kdc1899, Feb 25, 2012.

  1. kdc1899

    kdc1899 Light Load Member

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    Feb 23, 2012
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    Hello. Do out of state oil field workers have to pay a N.D. state income tax on their earnings? Also, please, does an out of state driver have to change their CDL to a N.D. CDL?
    Thanks
     
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  3. CondoCruiser

    CondoCruiser The Legend

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    The company shouldn't hold out state taxes for a normal trucker. But if they are not engaged in interstate commerce and only intrastate, then yes they can hold out state taxes. That means you work strictly within the boundries of ND.

    That case, come tax time, you would file a ND non-resident state tax return. You can do it online. From their state website you'll find a link.

    If your residence has moved there and you expect to be there over 1 year, then yes you are suppose to change it. But you won't get in any trouble. If you plan on temporary employment and returning home, then just keep your original license and save the hassle.

    The law up there knows drivers have flocked in from all over the country and employment is temporary. They won't say a thing.
     
  4. kdc1899

    kdc1899 Light Load Member

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    Feb 23, 2012
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    Thanks. Did some research. Looks like the N.D. State Tax on $2,000.00 per week gross will be $47.00 if filing single no dependants.


    The full tax burden would be $500.00 per week. Add another $500.00 for rent and you would have to work an enormous amount of hours in that weather to take home $1,000.00 B4 you even pay for food or eletric, etc.

    Hmm
     
  5. Roadmedic

    Roadmedic Road Train Member

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    They will hold out the withholding on these employees. They are working in state. They are no different than any other employee as far as an employer in ND. It makes no difference whether they are truckers or not since they do not do business out of state.

    These people will have to watch the rules on residency when doing returns. Many states have some strange rules.
     
  6. CondoCruiser

    CondoCruiser The Legend

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    There's a difference between working in state and out of a state.

    It does make a difference on OTR drivers, but not local drivers. I've never paid state taxes for any company I worked for except Hirschbach. And they were in IA and I was IL when I started with them. They withheld IL taxes.

    Then they moved to IL and I moved back to TN, they continued to withhold IL taxes because the HR lady was too lazy to change my payroll address.

    But, I've worked for OTR companies out of AL, IA, and PA and never had state income tax withheld because my residence was in TN and I wasn't working in them states, just out of them.
     
  7. Roadmedic

    Roadmedic Road Train Member

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    Well aware of it. Just removing all doubt for those in ND.
     
    CondoCruiser Thanks this.
  8. SWTPA2T

    SWTPA2T Bobtail Member

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    Apr 24, 2012
    cortez, co
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    Where can I find an 'official' document stating that the company shouldn't hold out state taxes for a normal interstate commerce trucker?
    My S/O is an OTR driver living in TX and recently took a job with a company out of Colorado as a company driver. They want to withhold state taxes from his pay and he is having a hard time explaining to them that even though the company is in CO he is not a resident of CO (his CDL is from TX, his home is in TX, vehicles registered in TX, etc). We've never had a problem with other companies that he's worked for over the years that were based in Ohio, KS and other states that have state income taxes.
    He needs to show them an official hardcopy document stating so. Can you help???

     
  9. CondoCruiser

    CondoCruiser The Legend

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    Check out and print...

    49 USC § 14503(a)(1)

    http://us-code.vlex.com/vid/withholding-local-income-tax-carriers-19260143

    and throw in this definition of your job description

    http://us-code.vlex.com/vid/sec-definitions-19259645

    Then give it to them and :biggrin_25522: :biggrin_25522: :biggrin_25522: :biggrin_25522: :biggrin_2559:

    If CO state taxes were paid last year, I would fill out a Non-Resident form and under wages put a big 0 and maybe attach a letter stating you are an interstate trucker not subject to CO withholding as your residence is in TX referencing 49 USC § 14503(a)(1). Then include the W-2 with hopefully a TX address on it. You might also send other supporting documents like a lease/mortgage or a copy of a utility bill or voters registration card.
     
    rookietrucker Thanks this.
  10. SWTPA2T

    SWTPA2T Bobtail Member

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    Apr 24, 2012
    cortez, co
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    Thank you for the info!
    I am printing that USC as I type this!
    :biggrin_25514:
     
  11. MNdriver

    MNdriver Road Train Member

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    depends on if there is reciprocity with the other state or not.

    If they are, you will have to file both a ND return to get it all back PLUS a homestate return to actually pay what you should have been getting held out for.
     
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