Fulltime Address and working in another State?

[ricklord2001]

We are currently considering full timing and I think I've got most things figured out except one. I started a small business after I got out of the Computer Industry and did quite well. I currently have only kept a couple of premium accounts that allows me to work 4-5 short hour days a month (scheduled by me) and it pays great money for little work.
However it looks like I'd be using the Florida service for my home base location but doing my work in Georgia. Anybody know of any problems in doing this? Or have any suggestions/pointers on doing this?
This is about as close to free money as one can get and I want to make sure I don't screw it up with a oooops forgot about that.
Thanks

[hitchup]

We used to live in GA, moved to FL and then began full timing. I don't work, so I decided to keep my GA DL.

When DH works in GA we file as NON-residents and usually get a nice refund. Some higher taxed states we barely get anything back or may have to pay a little as a Non-resident.

Won't get much of one from GA this year as DH only worked in GA less than a month and then we moved on to NC. We're lucky because his employer takes care of the withdrawals on paychecks.

[ricklord2001]

Well this was informative. I got to admit, after seeing the responses it dawned on me that my accountant lives in Florida and comes up here every year during tax season to do taxes, should of called her. Duh didn't even think of it until I saw the posts!
Thanks for the help it's quite apparent I'll have to be real careful.

[DianneOK]

Moderator note...please get back to the original topic so I don't have to close this.

[monkey44]

rockportrocket wrote:
My choice of words were maybe wrong. The state of Ga TAXES you as a resident if you have income in their state. How can you or they explain that I had to pay taxes on all income that came into my hands, while I was a resident of Tx, and an owner of a corp?

While there as a transient I drew money from a 401K that I earned in Texas. It was a loan to buy a new fifth wheel.

Their answer: If money comes into the state, they want their tax whether you LIVE there or not. You may say what you want, but what happened , happened and I paid. PERIOD.

IT sound more to me like you were unaware of the state laws regarding income, employment. or the manner in which you withdrew the 401K ... not sure of all the details, but for example, if you withdrew from the 401K and bought that 5er while there and employed, they taxed you for completing that transaction in Georgia ... that's completely different than 'becoming a resident' just because you worked there.

If you are a Texas corporation working in Georgia, than you'd have to pay taxes, just like anyone else in Georgia ... the only issue I questioned was the statement, making money in Georgia makes you a resident of Georgia, and that's not true.

I believe all of us should be aware of tax consequences if we do business in another state than our residential state. I fell victim to that once in Connecticut - did a building project there and was 'residence out-of-state', and got killed on the taxes too ... although it was due to my ignorance of the tax method on my project, not because I lived there, or claimed residence.

[rockportrocket]

My choice of words were maybe wrong. The state of Ga TAXES you as a resident if you have income in their state. How can you or they explain that I had to pay taxes on all income that came into my hands, while I was a resident of Tx, and an owner of a corp?

While there as a transient I drew money from a 401K that I earned in Texas. It was a loan to buy a new fifth wheel.

Their answer: If money comes into the state, they want their tax whether you LIVE there or not. You may say what you want, but what happened , happened and I paid. PERIOD.

[monkey44]

Old-Biscuit wrote:

rockportrocket wrote:
Well Monkey, being a licensed practicing attorney for 40 plus years, and suing the state of Ga in 2001 and LOSING, as we were residents of Texas, but worked in Ga , borrowed money from our 401K while in Ga, monies earned in other states, none in Ga, forced to pay taxes on that money, plus taxes on monies earned in other states, while owning a Tx corp.

Please explain to me how that is impossible ~!!!!!!!!!!!

or better still, tell the state of Ga to return all my stolen tax money !!!!!!!

Nonresidents who work in Georgia or receive income from Georgia sources and are required to file a Federal income tax return are required to file a Georgia Form 500 Individual Income Tax Return.
Some examples of Georgia source income are wages, Georgia lottery winnings, income from flow through entities (s-corporations, partnerships, LLCs, trusts, and estates),

All I'm sure you were informed of when you lost and had to pay the taxes due.

You said / he said, Georgia required anyone to be a resident of Georgia if you earned income there. That's my dispute, not that you shouldn't pay taxes on money you earned there. But, for a state to say in order to work in that state, you have to reside in that state can't be true. I've worked for years in other states besides California and Mass and Florida - all at one time or another my residential state.

Never once did I have to become a resident of that state where I worked, but always in the states where I work, I have to file taxes in that state and pay them - but no one ever said I had to become a resident to work ... that's simply not true. In some cases, maybe with some jobs, perhaps. But every circumstance is different, and must be treated as it is individually, not as 'everyone'.

Just because you happen to be an attorney, doesn't mean your correct all the time. There is always two sides of an issue in court, and one side always loses, but, still two sides to the issues - and that means fifty percent of the attorneys in a case argue the wrong (losing) side of it.

[Francesca_Knowl]

rockportrocket wrote:


or better still, tell the state of Ga to return all my stolen tax money !!!!!!!

Sorry, Rock...no can do.

For It Is Written:
"Once the State taketh away, it never giveth back. Yea, though you beggeth on bendeth knee, and citeth all the legal authorities at RV.net, it doth nothing but laugheth in thy faceth. "

But for future reference:
Where you went wrong was in not seeking/getting advice from the Legal Beagles of This Site. Hope you learned your lesson!...:B...;)

[Clay_L]

I lived in NH and worked in MA for 18 years.
No problem, just had to pay MA income tax on money earned in MA. On days when I traveled out of state I did not have pay MA taxes on my salary for those days.

I had a CPA do my taxes the first year.

After that I knew what records to keep and what forms to submit and did them myself.

[Old-Biscuit]

rockportrocket wrote:
Well Monkey, being a licensed practicing attorney for 40 plus years, and suing the state of Ga in 2001 and LOSING, as we were residents of Texas, but worked in Ga , borrowed money from our 401K while in Ga, monies earned in other states, none in Ga, forced to pay taxes on that money, plus taxes on monies earned in other states, while owning a Tx corp.

Please explain to me how that is impossible ~!!!!!!!!!!!

or better still, tell the state of Ga to return all my stolen tax money !!!!!!!

Nonresidents who work in Georgia or receive income from Georgia sources and are required to file a Federal income tax return are required to file a Georgia Form 500 Individual Income Tax Return.
Some examples of Georgia source income are wages, Georgia lottery winnings, income from flow through entities (s-corporations, partnerships, LLCs, trusts, and estates),

All I'm sure you were informed of when you lost and had to pay the taxes due.

[rockportrocket]

Well Monkey, being a licensed practicing attorney for 40 plus years, and suing the state of Ga in 2001 and LOSING, as we were residents of Texas, but worked in Ga , borrowed money from our 401K while in Ga, monies earned in other states, none in Ga, forced to pay taxes on that money, plus taxes on monies earned in other states, while owning a Tx corp.

Please explain to me how that is impossible ~!!!!!!!!!!!

or better still, tell the state of Ga to return all my stolen tax money !!!!!!!

[murphyhappens]

All of this is very interesting and I can toss in a couple of wrinkles (without any answers). I've worked for large companies with an international presence and offices in multiple states. One employer, years ago, sent me to Venezuela to do some work a couple of times. Once I had to show I'd paid Venezuelan income tax before I could leave, the send time I just snuck out of the country (Aruba is nice!). The company I now work for has sent me on international trips and to locations in other states to do work and I've never paid income taxes or been asked to in those countries or states. Part of that may be the IRS rules which define my place of work to be in Texas and all other sites to be temporary, but I don't know how that applies to State Income Tax rules. All interesting questions though since they appear to be getting ready to send me to either Arizona or Colorado on temporary assignment for up to a year. And to make things even more interesting, my GF (with the same company) transferred to Colorado for an assignment and she was told, by HR, that she could declare herself to be a resident of either Texas or Colorado for tax purposes. Maybe this is possible because the company has a presence in both States, but it does raise some interesting questions.

[monkey44]

rockportrocket wrote:
You best check the laws on that. If you draw wages in Ga (under their laws), you are considered a resident. PERIOD. I went thru hell during what you are saying. If you are a Ga resident and you earn wages elsewhere, YOU must pay taxes to Ga on all that other income. And that includes pensions, 401ks, or any king of income.

What you said is not possible - as state cannot force you to become a resident just because you earn money in that state. I earned money in several states for years - and only filed taxes in my home state ... it depends on the kind of work you do and where that work is "Home Based" not always where you earn that money, nor who pays it.

Right idea, check with a tax person in your home state to see how it works. Don't take the word of someone on this forum as absolute.

[Old-Biscuit]

Filing Requirements

What are the filing requirements for:
Full-year residents? You are required to file a Georgia income tax return if any of the following apply: (a) You are required to file a Federal income tax return; (b) You have income subject to Georgia income tax but not subject to federal income tax; (c) Your income exceeds Georgia's standard deduction and personal exemptions. These requirements apply as long as your legal residence is Georgia even if you are temporarily absent from the state or live outside the state temporarily. Even though your income may be less than the filing requirements (personal exemption(s) plus standard deduction), you may file a return to receive a refund of tax withheld or to claim a refund for the low-income credit.

Part-year residents? If you are a legal resident of Georgia for only a portion of the tax year and are required to file a federal income tax return, you are required to file a Georgia Form 500 Individual Income Tax Return. You must complete Page 4, Schedule 3 to determine your Georgia Taxable income. A full explanation of how to compute the tax for part-year residents is provided in the instruction booklet.

Non-residents? Nonresidents who work in Georgia or receive income from Georgia sources and are required to file a Federal income tax return are required to file a Georgia Form 500 Individual Income Tax Return. Some examples of Georgia source income are wages, Georgia lottery winnings, income from flow through entities (s-corporations, partnerships, LLCs, trusts, and estates), rents, etc. If you are a legal resident of another state, you are not required to file a Georgia income tax return if your only activity for financial gain or profit in Georgia consists of performing services in Georgia for an employer as an employee when the compensation for services performed does not exceed the lesser of five percent of the wages in all places or $5,000. A full explanation of how to compute the tax for non-residents is provided in the instruction booklet.

Military personnel? Military personnel whose home of record is Georgia or who are residents of Georgia are subject to Georgia income tax upon all income regardless of source or where it is earned, unless specifically exempt by Georgia law. Refer to the instruction booklet for additional information.



Georgia Department of Revenue | Copyright 2011.

[rockportrocket]

You best check the laws on that. If you draw wages in Ga (under their laws), you are considered a resident. PERIOD. I went thru hell during what you are saying. If you are a Ga resident and you earn wages elsewhere, YOU must pay taxes to Ga on all that other income. And that includes pensions, 401ks, or any king of income.