Tax Law (Questions About Taxes)/Contractor state taxes

Advertisement


Question
Good Afternoon,
My husband is working as a military contractor, therefor he travels state to state. Our home is in NH, no state income taxes, he is currently working in FL, no state income taxes. The company is based in NC. Currently they are taking out NC state taxes. As far as I know, you pay the state taxes in the state you are working and depending where you actually live, you may have to pay state income tax to 2 states. As for our situation we should be paying no state income tax as far as I know. This is the response I recieved when I questioned  the company..


The company that holds the contract is in NC.  Therefore he technically works in NC, although TDY.  At the end of the year, when taxes are filled, it gets washed out.

Anything you can tell me about this situation would be appreciated.
Also, is there a way to get these taxes back when filing in NC next year?

Susan

Answer
Susan,

Thanks for your question.

The employer is not correct, but it is not likely you will convince them otherwise.  However, you can file a Form NC-4 EZ. On line 3, check that you are exempt from NC withholding because you expect no tax liability.  Submit this form to the employer.  Should take care of any more withholding.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

All Answers


Answers by Expert:


Ask Experts

Volunteer


John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

©2016 About.com. All rights reserved.