State Tax Issue

Discussion in 'Trucker Legal Advice' started by dwpjmp, May 8, 2010.

  1. dwpjmp

    dwpjmp Bobtail Member

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    May 8, 2010
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    I am a Kansas resident. During 2004-2006 I had a contract with a Missouri trucking company. I paid my state taxes to Kansas. Missouri is now hitting me with a massive bill for those years, including interest and penalties. I thought I only needed to pay state taxes in the state of my residency. Can someone help me figure out what to do?
     
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  3. Roadmedic

    Roadmedic Road Train Member

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    Sounds like reciprocity issues.



    Found this on a quick search.

    http://dor.mo.gov/tax/personal/faq/nonresident.htm#nonres

    Nonresident with income from Missouri and another state

    I am a resident of Kansas. A portion of my income was earned in Missouri and the remainder was earned in Kansas. Why can't I begin my Missouri return with only the Missouri source income?

    Your Missouri return must begin with your total income (federal adjusted gross income) as reported on your federal return, even if you have income from another state. Your deductions and exemptions apply to your total income, not just part of it. The return is computed as if you are a full year resident and is then reduced by the Missouri income percentage (Form MO-NRI). The result is a prorated Missouri tax, based only on the income earned in Missouri.
     
    rookietrucker Thanks this.
  4. brsims

    brsims Road Train Member

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    In which case it is Missouri's job to get what they are owed from Kansas, not from you. Tell'em to piss off.
     
  5. Roadmedic

    Roadmedic Road Train Member

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    Sorry, but you are wrong.

    See the additional I posted. There are rules when you work for a state like this. Many of the states require non resident filed returns.
     
  6. brsims

    brsims Road Train Member

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    My bad. I live in a commonwealth, and have never had to file taxes for any other state, even when I was driving for out-of-state based carriers.
     
  7. dwpjmp

    dwpjmp Bobtail Member

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    May 8, 2010
    Kansas
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    Roadmedic, I saw that from the MO site but I also saw from other states that a OTR trucker only paid taxes in the state of their residency. Even though I was under contract with the MO trucking company I did most of the trucking in other states. Do you still believe I owe MO?
     
  8. Roadmedic

    Roadmedic Road Train Member

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    Normally a trucker does not. However, some of the states have these types of rules. Illinois, Indiana for instance where there is a movement of employees across state lines.

    An OTR driver should not be prone to the problem where this is needed.

    I would believe he needs some tax help on the issue, but not knowing the job he performed and all, cannot make the judgement call.
     
  9. dwpjmp

    dwpjmp Bobtail Member

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    May 8, 2010
    Kansas
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    Here is something I found from the MO State Employer's Guide.

    49 USC Sections 11502 and 14503 limit state taxation on wages of employees of rail, motor, and private motor carriers. Missouri withholding is required on rail, motor, and private motor carrier employees whose state of residence is Missouri. Employees of rail
    carriers and motor carriers who perform regularly assigned duties in more than one state are subject to state income tax only in their state of residency.

    Wouldn't this mean the same for me even though I was not an employee and under contract?
     
  10. Yatista

    Yatista Medium Load Member

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    Upstate New York
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    If you were paid under a 1099 you were operating a business and subject to the laws of the state where you had the contract. If you were paid and received a W-2 for the income it is treated differently. You need to contact a tax professional to get this straight. If you don't, the collection process will continue and you will regret not taking action sooner.
     
  11. Roadmedic

    Roadmedic Road Train Member

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    I am a tax professional. He has not given enough information to determine anything. I have never heard of a truck driver having to pay income tax in the state where the truck company is located when they are residents of another state.
     
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