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re: Texas state income tax

Posted on 4/18/12 at 8:24 pm to
Posted by I Love Bama
Alabama
Member since Nov 2007
37767 posts
Posted on 4/18/12 at 8:24 pm to
quote:

But I would rather be making 50k working 60 hour weeks then sitting my moms basement unemployed like the rest of my friends.


Try and make sure you get some exercise while working there. Something about working for the big 4 makes you gain 50 pounds. At least all my friends did anyway.
Posted by kfizzle85
Member since Dec 2005
22022 posts
Posted on 4/18/12 at 8:33 pm to
Truth.
Posted by VABuckeye
Naples, FL
Member since Dec 2007
35719 posts
Posted on 4/18/12 at 9:16 pm to
You get a credit for the taxes you paid to Texas.

From the Georgia state site.

quote:

What are the requirements for a resident who earned income in another state?

A full year resident is taxed on all sources of income regardless of where the income is derived. Georgia allows other state credit for income taxes paid to states other than Georgia. A copy of the other state(s) income tax return must be attached to the Georgia return. Use the worksheet in the Georgia instruction booklet (IT-511) to compute the other state credit for a full or part-year resident. If you paid taxes to more than one state, use the total of the other state’s income to compute the credit. No credit is allowed for income earned in another state if the income was not taxed by the other state. The credit cannot exceed your Georgia income tax. No credit is allowed for income earned in another country
This post was edited on 4/18/12 at 9:18 pm
Posted by frb1951
Member since Apr 2012
60 posts
Posted on 4/18/12 at 10:17 pm to
Texas has no state income tax so there will be no credit available to carry to his Georgia return.

Especially if the company he is working for is from Georgia, he can ask that Georgia taxes be deducted.....otherwise, he's going to have to bite the bullet and pay Georgia state taxes after he files his Federal return.

Posted by VABuckeye
Naples, FL
Member since Dec 2007
35719 posts
Posted on 4/18/12 at 10:44 pm to
Exactly. Which is what was quoted in the statute I provided.

He has to pay income in Georgia on the income earned in Texas if there is no state income tax in Texas. No ifs, ands or buts about it.
Posted by tigeryat
God's Country
Member since Oct 2005
2918 posts
Posted on 4/18/12 at 11:01 pm to
quote:

He has to pay income in Georgia on the income earned in Texas if there is no state income tax in Texas. No ifs, ands or buts about it.


this

Anyone in this thread saying otherwise is full of fail.
Posted by reb13
Member since May 2010
10905 posts
Posted on 4/19/12 at 12:25 am to
So what can I do to avoid the tax?
Posted by macatak911
Metairie, LA
Member since Sep 2007
11073 posts
Posted on 4/19/12 at 12:31 am to
You can't.
Posted by reb13
Member since May 2010
10905 posts
Posted on 4/19/12 at 12:40 am to
quote:

You can't.


Well that is not true. How long do I have to be a resident of TX to be considered domiciled there?
Posted by C
Houston
Member since Dec 2007
27845 posts
Posted on 4/19/12 at 7:25 am to
quote:

full year resident


He isn't a full year resident.
Posted by C
Houston
Member since Dec 2007
27845 posts
Posted on 4/19/12 at 7:26 am to
quote:

no one else knows what they are talking about.

On your W-2 box 15 is work location. Make sure that your internship employer puts TX not GA. That is all that matters, then when you file report 0 taxable income in GA.


That's what I said from the start.
Posted by VABuckeye
Naples, FL
Member since Dec 2007
35719 posts
Posted on 4/19/12 at 7:48 am to
It doesn't matter if he does the work in Texas and checks the box. Georgia still says he is a resident and that he owes state income tax to the state of Georgia.

Posted by reb13
Member since May 2010
10905 posts
Posted on 4/19/12 at 10:09 am to
So I need to be a resident in TX for a year before I do the internship or I will have to pay GA state income tax?
Posted by VABuckeye
Naples, FL
Member since Dec 2007
35719 posts
Posted on 4/19/12 at 11:19 am to
Correct.
Posted by reb13
Member since May 2010
10905 posts
Posted on 4/19/12 at 11:32 am to
Interesting. So when I start full time and actually move out there for good will I still have to pay GA income taxes for the first year?
Posted by VABuckeye
Naples, FL
Member since Dec 2007
35719 posts
Posted on 4/19/12 at 12:36 pm to
quote:

Interesting. So when I start full time and actually move out there for good will I still have to pay GA income taxes for the first year?


No. Change of address. New drivers license. Vehicle registered in Texas. Etc.

I mean you could "fake it" but are the taxes on $15000 worth the risk? We're not talking about much money here.
This post was edited on 4/19/12 at 12:37 pm
Posted by C
Houston
Member since Dec 2007
27845 posts
Posted on 4/19/12 at 12:38 pm to
quote:

Change of address. New drivers license. Vehicle registered in Texas.


I never did any of that. Just changed my withholding
Posted by reb13
Member since May 2010
10905 posts
Posted on 4/19/12 at 12:58 pm to
quote:

I mean you could "fake it" but are the taxes on $15000 worth the risk? We're not talking about much money here.


I'm a broke college student $100 is a lot of money.
Posted by VABuckeye
Naples, FL
Member since Dec 2007
35719 posts
Posted on 4/19/12 at 1:18 pm to
quote:

I never did any of that. Just changed my withholding


Then you should have filed a state tax return for the state in which you were a legal resident. Working in another state does not mean that you don't owe state income taxes to the state of legal residence.
Posted by TechME
The AP
Member since Oct 2011
71 posts
Posted on 4/19/12 at 1:35 pm to
quote:

I never did any of that. Just changed my withholding


You got lucky. I'm originally from BR, but out of college I worked in Milwaukee for a couple of years before moving back to BR. I filed part-year resident returns for Louisiana and Wisconsin the year I moved back so that I would only be taxed by each state on the income earned in that state.

Fast forward a year later and I get a bill from Louisiana dept. of revenue for back taxes with interest and penalties. They had pulled my federal returns from the years I worked in Wisconsin and were going to bill me for Louisiana state taxes based on my federal AGI unless I could prove I wasn't a Louisiana resident during those years. Had to go dig up old apartment lease agreements and my canceled Wisconsin vehicle registration to get them to drop the bill. Sometimes it pays to be a pack rat with those kinds of things.
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