Paying taxes to multiple states

Basically what I already stated regarding the state who gets the income tax. I am confused as to why you would quote me unless you had a question about my statement. The OP was asking about an Owner Ops tax situation. We don’t generally have income taxes deducted by our carrier like company drivers do, although the state who gets our income tax is the same as if we were a company driver. Our income tax is paid by us directly, often thru quarterly payments instead of being paid by our carrier every settlement.

 

My accountant always says I need to start paying taxes in each state I made money in. I always tell him forget it, one state is enough. Let’s not get too complicated and costly.

 

I believe I would find a new accountant if my accountant told me that. However your tax situation could be different than mine.

 

You pay taxes only in the state where you are a resident (where your cdl is issued, where you get mail and where you are registered to vote...)
So the answer is no, you do not pay taxes to multiple states...

 

Your accountant is definitely not right, he is probably unlicensed tax preparer (you can open tax prep office without any education and knowledge, sad but true, google it if you don't believe me) . We pay state where we reside (there are certain exceptions but too much explanation and I am lazy to type right now lol ). Because we are using different state's highways we pay IFTA and HWY usage tax 2290 to the IRS...

 

That’s definitely interesting. I’d be very surprised if he’s not licenses as him and his partner employee around 50 people through the accounting service and their wealth management (which I don’t use).

Here in a couple months when he brings it up again, I’ll make sure and ask what tax code or whatever he’s talking about.

I appreciate your insight on it.

 

I live in PA but I used to work seasonally for a propane company out of NY paid hourly. I never delivered in NY and only drove in NY to pickup and return the truck.

They only deducted PA taxes from my paycheck, but whenever I would do my taxes through TurboTax it would try to get me to file both PA and NY state taxes. I always skipped it figuring it's just TurboTax trying to get more money out of me.

I started worrying about it though and I mentioned to my buddies wife who is a tax attorney that used to reside in NY. She told me she wasn't sure if I was supposed to file NY taxes or not, but she assured me if I was supposed to they would probably have been after me by now.

That was about 3 years ago and so far so good.

 

No, you pay in the state that you live in only.

 

To understand what this fee is for, you need to know that personal income tax is a compulsory, individually non-refundable payment levied on individuals at the expense of funds belonging to them to financially support the activities of the state.

 

You need to find an tax accountant that’s very familiar with owner operators.
there are lots of accountants out there that have experience in doing just that