Discussion:Non resident Income Taxable?

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Discussion Forum Index --> Tax Questions --> Non resident Income Taxable?


TAXPROLB (talk|edits) said:

16 March 2007
I have a client that is a professor. She live in California but teachin class via internet to students in Maryland. She never goes to that other state. The W-2 she got from the university shows the state wages as Maryland. Does she have to file a Maryland return?

Riley2 (talk|edits) said:

16 March 2007
I believe that 4 states have telecommuting tax laws, and I believe that CA and MD do not have such laws. Suggest having state wages changed to CA.

KatieJ (talk|edits) said:

17 March 2007
Your client has no Maryland source income under either Maryland or California law. Even New York, the most notorious state for taxing telecommuters, wouldn't consider this NY source income as long as your client did not spend any time at her New York employer's place of business. Furthermore, if Maryland did tax the income, California would not allow her credit for the tax paid to Maryland because the services were performed in California and therefore, by California's lights, produced California source income.

If Maryland tax was withheld, she needs to file a nonresident return with Maryland to get the refund.

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