With my lawsuit against my ex-employer coming up for making me pay my own perdiem, my W-2 arrived and I went to file my taxes. I saw that I was not only on a lower tax bracket but that they had not taken out any state taxes either. I live in California and the company is out of Arizona, correct me if I'm wrong but isn't Arizona a tax free state? If so, does their actions get me in trouble with the IRS? I was a company driver not an owner operator.