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Do you have to pay taxes in LA if you work out of state for entire year?

Posted on 11/17/15 at 6:38 pm
Posted by Bonjourno
New Orleans
Member since Jan 2010
2705 posts
Posted on 11/17/15 at 6:38 pm
In 2013 I worked in CA and GA. No work at any point in LA. CPA filed taxes in those states but not LA. A while back, I got a letter from LA saying they did not receive return and asking why. Sent in the form, checking that I was not required to file due to working in other states. Attached those returns and never heard anything back. Today I get letter stating that LA has amnesty program to pay my liabilities with amount I owe including late penalties. Hoping this is a mistake. Why would I owe LA if I didn't work here?
Posted by TigerintheNO
New Orleans
Member since Jan 2004
41160 posts
Posted on 11/17/15 at 6:47 pm to
Not a CPA, but did you file your return in Louisiana? If you were a resident of Louisiana, I would think you have to file in both states where you lived & worked. Then you get credits for the taxes paid in the other states.

Talk to your CPA.
Posted by Jcorye1
Tom Brady = GoAT
Member since Dec 2007
71340 posts
Posted on 11/17/15 at 7:55 pm to
Not that I would have any idea what he's talking about, but that sounds correct.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37034 posts
Posted on 11/17/15 at 9:08 pm to
First, there are problems with the amnesty letters. LDR has suspended the program while they sort it out so it's possible the letter was a mistake.

Second, there is no box to check saying you worked in other states. If you were still considered an LA domiciled resident, then there should have been an LA return filed, taking an other state tax credit which may have eliminated most if not all of LA tax.

Third, did you talk to the CPA after you got the first letter?
Posted by Bonjourno
New Orleans
Member since Jan 2010
2705 posts
Posted on 11/17/15 at 10:10 pm to
Yes talked with the CPA and he said that he didn't believe I needed to file. Then I called the state and the person I spoke to said to check the box stating I wasn't required to file then I wrote the reasoning in a explanation portion provided. CPA is in Pennsylvania though so may have differing state laws. Even if I need to go back and file, I shouldn't owe anything since I didn't work in LA or am I off on that?
Posted by Jcorye1
Tom Brady = GoAT
Member since Dec 2007
71340 posts
Posted on 11/17/15 at 11:02 pm to
LDR Taxpayer Education on Residency and Domicile

Not that I know anything about anything, but that's part of the LDR Website's taxpayer education section. It should somewhat help you understand what is needed, but as I'm not a professional nor anything else that's just a guess.
Posted by Poodlebrain
Way Right of Rex
Member since Jan 2004
19860 posts
Posted on 11/18/15 at 9:03 am to
If you did not establish residency in CA or GA, then you did not become a nonresident of LA for 2013 from LA's perspective. As such, you should have filed a LA individual income tax return and nonresident returns for CA and GA claiming a credit for taxes paid to CA and GA. The likelihood is that you will owe LA nothing if the tax rates in CA and GA are equal to or higher than LA.

I'd contact the CPA who prepared your 2013 returns and ask if he will correct this matter, and what the costs involved will be. Let him know that you relied on his professional expertise, and there is the possibility that mistaken advice will cost you money. He should feel a sense of obligation to minimize the costs to you.

If I had to guess, he prepared returns for CA and GA claiming part-year or nonresident status. So those returns should not require amendment. All that will be necessary is filing the LA return with copies of the CA and GA returns attached to support the credit for taxes paid to other states.
Posted by Bonjourno
New Orleans
Member since Jan 2010
2705 posts
Posted on 11/18/15 at 1:18 pm to
Thanks for responses. I talked to someone at department of revenue who said that amnesty letter was just a guess based on federal returns. She said they received my returns but not W2s from other states and once they receive W2s should be in the clear without owing anything
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37034 posts
Posted on 11/18/15 at 4:49 pm to
quote:

Jcorye1


I know you probably can't say anything, but I'd love to hear your inside view on what the heck happened with the Amnesty Letters.
Posted by C-Bear
A Texas Tiger
Member since May 2005
809 posts
Posted on 11/19/15 at 7:46 am to
Poodlebrain, our main residence is in TX(no state income tax). My husband was laid off from O&G, but thankfully found another job in South Carolina that he started last month. He has an apartment there, as his company pays living expenses, etc. SC state taxes are being deducted from his check. Since we don't file state taxes with TX, will we be able to file taxes in SC to claim those deductions? Thanks in advance.
Posted by Poodlebrain
Way Right of Rex
Member since Jan 2004
19860 posts
Posted on 11/19/15 at 8:24 am to
You have to file a tax return for South Carolina. How payments are reported to your husband will determine how they have to be reported on the South Carolina tax return. I don't have enough information to answer your question with any confidence that I'd be providing you with useful advice. Sorry.
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