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Tax Question - state income taxes

Posted on 12/18/14 at 4:02 pm
Posted by Powerman
Member since Jan 2004
162198 posts
Posted on 12/18/14 at 4:02 pm
So I live in Texas and my company has been deducting Louisiana income taxes for most of 2014

I work offshore so I'm technically not working in Louisiana

Will I get a full refund of those taxes paid if I file as a Texas resident?

What should I be expecting come tax filing time?
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37031 posts
Posted on 12/18/14 at 5:11 pm to
your company knows you live in Texas?
Posted by Teton Tiger
Somewhere between here and there.
Member since Mar 2005
2991 posts
Posted on 12/18/14 at 5:14 pm to
You need to prove you are a Texas resident. Driver licenses voting registration car resister in Texas. How long you been a resident of Texas? Over a year or more? Ect ect Talk to your tax preparer.
Posted by Powerman
Member since Jan 2004
162198 posts
Posted on 12/18/14 at 5:15 pm to
Yes, they know I live in Texas

They've been taking out LA income taxes ever since I transferred to the offshore division

I let them continue to do so because I was under the impression that I'd get it all back later anyway

If I'm wrong, well, I'm burning down Baton Rouge.
Posted by Powerman
Member since Jan 2004
162198 posts
Posted on 12/18/14 at 5:16 pm to
quote:

You need to prove you are a Texas resident. Driver licenses voting registration car resister in Texas. How long you been a resident of Texas? Over a year or more? Ect ect Talk to your tax preparer.

Proving I'm a TX resident will be easy

So I guess I can't do this with Turbo Tax eh?
Posted by Hawkeye95
Member since Dec 2013
20293 posts
Posted on 12/18/14 at 5:46 pm to
quote:

If I'm wrong, well, I'm burning down Baton Rouge.


i dont think anyone will miss it
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37031 posts
Posted on 12/18/14 at 6:05 pm to
Well the company thinks that even if you are offshore your worksite is subject to LA tax
Posted by Htown Tiger
Houston
Member since Sep 2005
2312 posts
Posted on 12/18/14 at 6:34 pm to
I hope your situation is easier than mine was:
LINK

Louisiana probably doesnt have the same requirement that Illinois did where the company had to admit to mistakenly withholding taxes, so in that case you can probably just file a non-resident return and claim the refund.
Posted by Powerman
Member since Jan 2004
162198 posts
Posted on 12/18/14 at 7:57 pm to
I hope it's that simple. And I hope I don't have to wind up paying that.

I'll be filling out the Exemption form so they don't withhold it any longer just in case I have to eat all or part of it.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37031 posts
Posted on 12/18/14 at 8:02 pm to
Htown were you able to he that mess resolved?
Posted by Poodlebrain
Way Right of Rex
Member since Jan 2004
19860 posts
Posted on 12/18/14 at 10:27 pm to
quote:

I work offshore so I'm technically not working in Louisiana
If you are within 3 miles of the shoreline, then you are considered to be working in Louisiana.

How do you get to the offshore platforms? If your departure point is from a heliport in Louisiana your employer might be required to classify you as working in Louisiana.

quote:

Will I get a full refund of those taxes paid if I file as a Texas resident?
File a Louisiana Form IT-540B as a nonresident. It is free at the Louisiana Department of Revenue website.) Report zero as your Louisiana Adjusted Gross Income, and you should get all of the tax withheld refunded.
Posted by Powerman
Member since Jan 2004
162198 posts
Posted on 12/18/14 at 10:29 pm to
quote:

If you are within 3 miles of the shoreline, then you are considered to be working in Louisiana.

Try 200

quote:

If your departure point is from a heliport in Louisiana your employer might be required to classify you as working in Louisiana.

Yeah it's from an airbase in Louisiana
Posted by Layabout
Baton Rouge
Member since Jul 2011
11082 posts
Posted on 12/19/14 at 2:09 am to
I'm pretty sure all income from Louisiana sources is subject to Louisiana income tax. The movie people, for example, have Louisiana tax withheld when they work on location here. The tax they pay in Louisiana can be deducted on their California return (and vice-versa) so the income is not taxed twice. But since Texas has no income tax, you may owe the entire Louisiana tax.

quote:

Nonresident and part-year resident taxpayers who are required to file a federal individual income tax return are required to file a Louisiana income tax return, IT-540B, reporting all income earned from Louisiana sources. The calculation for the IT-540B requires that a taxpayer report all income from all sources in order to determine a ratio of Louisiana adjusted gross income to Federal adjusted gross income. Only income earned from Louisiana sources, however, is taxed.

Gambling winnings earned in Louisiana is considered to be Louisiana sourced income. A nonresident who received gambling winnings from Louisiana sources and who is required to file a federal income tax return must file a Louisiana return reporting the Louisiana income earned. If the amount withheld is overpaid, a refund of the difference will be issued or credited to the tax liability for the following year, based upon the taxpayer's return.

Military personnel whose domicile (home of record) is not Louisiana are not required to file a Louisiana income tax return on the wages earned from the military. Military personnel who earned nonmilitary income from Louisiana sources or whose spouse earned income from Louisiana sources are required to file a Louisiana income tax return reporting the amount of Louisiana income.

Nonresident and part-year resident taxpayers use the Tax Computation Worksheet to calculate the amount of Louisiana tax due based on the amount of their Louisiana taxable income. The Tax Computation Worksheet allows a deduction for a Personal Exemption based on filing status. A credit of $1,000 for each dependent and for each taxpayer and/or spouse whose age is 65 and over, or who is blind, is applied in determining the amount of tax.


LINK
This post was edited on 12/19/14 at 2:13 am
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37031 posts
Posted on 12/19/14 at 7:01 am to
The issue is... Is he considered a non resident working in LA?

OP I would ask your HR why they think the earnings are subj to LA withholding.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37031 posts
Posted on 12/19/14 at 9:12 am to
quote:

Yeah it's from an airbase in Louisiana


When do you go "on the clock"? When you arrive at the base? When you get on the bird? When you land on the rig?

I would ask your company why they are taxing you. It might be they believe because your base is in LA, that they are required to tax you. Or it might be a mistake.

Posted by Powerman
Member since Jan 2004
162198 posts
Posted on 12/19/14 at 12:31 pm to
Well I'll be sending in my exemption form either way

frick Louisiana. I don't live or work there so I shouldn't be subject to their taxes.
Posted by Htown Tiger
Houston
Member since Sep 2005
2312 posts
Posted on 12/19/14 at 1:07 pm to
quote:

Htown were you able to he that mess resolved?

It got complicated, but I was able to get all of 2014's withholdings back. I think 2013's is a loss though. I probably could if I wanted to raise a stink with my company, as I'm likely legally entitled to it, but the ramifications wouldnt be pretty and I have chosen not to.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37031 posts
Posted on 12/19/14 at 2:00 pm to
I'd send in the exemption form and go from there. I'd also file a LA Non resident return for 2014 showing 0 LA income and asking for all my LA withholding back.

Now... the company is probably going to issue you a W-2 showing the LA income tax withheld and the amount of Louisiana income, and a copy will go to LA. So, I'd prepare myself for a letter from LA at some point asking what's going on. At which point you tell LA your company screwed up and you are a Texas resident and the only time you even step foot in LA for work is because you have to fly out from there.
Posted by Powerman
Member since Jan 2004
162198 posts
Posted on 12/19/14 at 2:03 pm to
quote:

and the only time you even step foot in LA for work is because you have to fly out from there.


That and to spend my money on gas and hotels that I don't get reimbursed for.
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