Pay taxes in the state where I live, or my employers home state?

Hope you guys realize this is an old thread.

Had a friend that worked for Dynamic Transit out of Illinois.
He lived in Texas.
They were withholding IL State Income Taxes.

Not too bad for him, but would really suck if you lived in say... Missouri.

 

Amtrak Act of 1990: company employees (and owner operators) driving a commercial vehicle interstate pay only their home state's income tax -- even if their company's terminal is in another state.

 

You are misunderstanding what I said. It is NOT that trucking companies with hold taxes, the issue was if you work for a company in Wisconsin, but live in PA, the company will NOT with hold any state tax for you, so you are responsible for paying quarterly estimated taxes yourself. The Wisconsin company might with hold taxes if you lived in nearby state like Minn, IL, Mich., if they had reciprocity agreements, AND those states had a personal income tax.

 

If your friend lived in Texas, he should NOT have been paying state income taxes to the state of Illinois.

It does NOT matter if the trucking company is out of Illinois.

 

I work for Dynamic, yet I live in Tennessee where we have no state income tax. Ya, they withold Illinois state income tax from me too. You know, we have a much higher state sales tax in Tennessee because of the no income tax. So, I kinda thought this was getting hit in the head twice!

 

This is what I could find;

"States without an income tax

The exception to all this are the seven states without an income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. In addition Tennessee and New Hampshire tax only interest and dividends.

If you live in one of these states, you don’t need to file a resident return (unless you live in TN or NH and have interest and dividends income). But if you work in a state that does have an income tax you have to file a nonresident return in that state.

The same holds true when the situation is reversed. If you live in a state with an income tax, you must file a resident return there. But if you work in a state without an income tax, you don’t have to worry about filing a return."

Nothing that says you DON'T have to pay another states income tax that you work in.

 

My carrier is based in Missouri, I live in Colorado... both have state income taxes. It's just plain easier to use a CPA for taxes (who just happens to specialize in returns from the transportation industry)... they've never filed state taxes for me in Missouri, but I always have one for Colorado.

...I believe they probably have a pretty good handle on how it works.

 

some companies will do that you need to file what is called a non resident tax return to the state of Illinois and get all your money back.