Paying taxes to multiple states

Discussion in 'Trucker Taxes and Truck Financing' started by slow.rider, Apr 17, 2021.

  1. slow.rider

    slow.rider Road Train Member

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    Do you as an interstate owner op pay income taxes to multiple states? If you lease on to someone, is your income then considered to be all from one state? If you have your own corporation in one state and lease on to a carrier in a different state, which state do you pay taxes to?
     
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  3. Banker

    Banker Road Train Member

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    I live in Ky and am leased to a carrier based in Ca. I pay state income tax to Ky only. My local city also has an occupational tax, but I only am required to pay a very small fraction as the majority of my work is done outside the city limits. I have heard of some local jurisdictions trying to get truckers delivering in their locals to pay some income tax there, but I have not encountered that.
     
  4. slow.rider

    slow.rider Road Train Member

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    Thanks. Whose decision was it to pay KY tax rather than CA tax? Yours or a tax pro? My accountant is on vacation this week so I can't ask her.
     
  5. Banker

    Banker Road Train Member

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    You pay state income tax in the state you reside and not where the company you work for is headquartered. Those people that live in a state like Tn or Fl have no state income tax.
     
  6. stillwurkin

    stillwurkin Road Train Member

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    Its where he lives. I only pay where i live also.
     
  7. Ridgeline

    Ridgeline Road Train Member

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    The courts and congress
     
  8. Protea

    Protea Bobtail Member

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    I think you should pay the taxes just for one state, but I'm not entirely sure. If you need a more concrete response, I think you should talk with a professional or a platform that can calculate that for you. I have multiple sources of income, and every time I calculate my taxes via paystub generator. It eases my work and allows me to have a specific number. The only thing I do is insert all the required pieces of information needed and verify if everything is correct. Maybe this might help you too.
     
  9. born&raisedintheusa

    born&raisedintheusa Road Train Member

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    I work and live in Wichita KS. The company that I work for has it's corporate headquarters outside of Chicago IL.

    I get paid every 2 weeks, with these deductions coming out of my paycheck:
    1)
    federal income taxes
    2) state income taxes
    3) Social Security taxes
    4) Medicare taxes
    5) company benefits: health & dental insurance, short & long term disability insurance

    NOTE:
    1)
    When my taxes get deducted out of my paycheck, my state income taxes go to the state of Kansas, where I live & work in, NOT the state of Illinois, where my company has it's corporate headquarters at.
    2) When payday arrives every 2 weeks, I use "direct deposit", in which my paycheck is directly deposited into my checking account, (electronically), at a local credit union. It is both convenient & safe to do it this way.
    3) Direct deposit - Wikipedia

    God bless every American and their families! God bless the U.S.A.!
     
    Last edited: Jan 9, 2022
  10. noworrez

    noworrez Light Load Member

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    Generally you only pay taxes to the state in which you reside. It's called the Amtrak Act and applies to Nonresident employees of motor, rail, air and water carriers. There are a few caveats but @inandoutoftrouble detailed in nicely.
     
  11. buckmanmike

    buckmanmike Light Load Member

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    New York state requires payment of taxes for income earned in NY. Professional sports players have to pay if the game is played in NY. I have no idea if truck drivers have a specific exemption. Rush Limbaugh use to comment about he had to pay income taxes in NY when he broadcast a show there, even though he lived in Fla.
     
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