Reposted:
Reposted:
I work and live in X state at the moment for J1. I got a remote job that thinks I'm going to be in Y state for J2. Both are remote jobs. They both don't have reciprocity for tax purposes. But when I file for taxes, how will this work?
State Tax X + State Tax Y + Fed Tax (doesn't matter where you live just based on income)?
Is there a way I can maximize my profits here legally without worrying about the IRS? The state i live in currently doesn't have state income tax so it'll prob be:
State Tax Y + Fed Tax
But I just wanted to ask for some advice ^
18 Replies
Thread automatically created by totaldev in #đ¤ď˝questions
passive-yellowâ˘3mo ago
HR will 100% see the discrepancy once you file your tax paperwork for withholdings, never mind defrauding the IRS. Do not recommend misrepresenting your address. I'll let others step in if they have actionable advice about your situation
modern-tealâ˘3mo ago
Could I not just withhold more to make up for it?
passive-yellowâ˘3mo ago
Never mind that for a minute, what I reacted to was
remote job thinks I'm going to be in Y state for J2
This is bad news bears if you are lying about your location
modern-tealâ˘3mo ago
Ah gotcha. Hmm but if I rented a crappy apt out there and said I was living there would that pass?
For more context, J2 is an internal transfer for a position that would be remote but is based out of Y state. They know that I'm coming from state X. Maybe I could say I live in state Y but just haven't updated my address?
Hmm well my big reason is being remote. The team requires you to be in a certain state even though everyone works remotely
fair-roseâ˘3mo ago
so you have J1 and J2 currently, and you are trying to figure out the best way to change your w4 for J2 now that they are expecting you to move to another state?
like-goldâ˘3mo ago
Yeah exactly, are there any tax implications Iâm missing here? Like in terms of residency etc. Because I live and work in state X and thatâs my primary residency for J1. But this other job my âresidencyâ needs to change to state Y. Would I be missing some extra taxes here or no?
dependent-tanâ˘3mo ago
There might be tax implications for the company. If you donât really have a residence or residencial address in state Y, I donât see how youâre going to pay those state taxes. Does state Y even have state taxes (many donât)? There also might be issues with J2âs company, since they may not be able to employ people in state X, some companies have limits to where you can work for non capricious reasons.
like-goldâ˘3mo ago
State X doesnât have taxes! But State Y does!
dependent-tanâ˘3mo ago
Dude that sucks! đ because state Y is the one with the problem
like-goldâ˘3mo ago
Hmmm so itâs a problem because my real residency is in a state with no taxes? But if I rent something in state Y, would it not fix the problem? đŹ
dependent-tanâ˘3mo ago
No. The problem is that you put an address for a job in a state where you donât have a real address. When you go to do your taxes, youâll have to put an address. Your state taxes should key off of that. If you put your address on state X, the expectation is that your income gets taxed by state X. And your company only has to be licensed to do business in state X. When you say state Y to your company but you donât live there, when they pay your wages theyâll put some money towards state taxes for state Y. Which isnât where you live. It just becomes complicated and you probably should consult a CPA and not âsome guy on the Internetâ â˘ď¸
like-goldâ˘3mo ago
Ohhh but just to quickly clarify they know that I live in state X! Iâm just moving to a different team in the same company. The team just operates in state Y. So I havenât put any address down as of yet if that helps my case at all?
Also thanks for responding to me and helping me out haha
dependent-tanâ˘3mo ago
Oh absolutely this makes all the difference!
If they know you live in state X then when you start put down state X as your address and then suddenly your plans to move changed, oops. Everyone is remote anyway, as long as youâre cool to work with and do a good job nobody should care. Unless the management decides to be picky about that.
You got it. Still you should check@with a CPA just in case, about that idea of a cheap rental there. Iâm not sure if that would work.
like-goldâ˘3mo ago
Ah yeah I ask because I think theyâre going to make me âmoveâ there even though I donât really need to be there since theyâre remote?
dependent-tanâ˘3mo ago
Yeah, thatâs kinda weird but depending on the industry and how regulated it is, this might be a real issue for them. Especially if they donât usually hire in state X.
Or if thereâs a difference in Cost of Living.
like-goldâ˘3mo ago
Not government and they hire in state X so I think itâs ok! đ
dependent-tanâ˘3mo ago
Not just government but other industries like banking, healthcare might have limitations as well.