4 ms·
Income gets taxed on where you earn it. It’s been that way for a very long time. This applies to everyone. Don’t see how it’s unfair. I’m certain OP knew thi
by skh 8y ago
Income gets taxed on where you earn it. It’s been that way for a very long time. This applies to everyone. Don’t see how it’s unfair. I’m certain OP knew this when taking the contract to work in California.
- EpicEng 8y agoThat's not true. I was a resident of TX for two years while still working for my SD company was not subject to CA state tax. If you're not present you don't pay.
- skh 8y agoRight. That's what I said. You get taxed where you earn the money. If you aren't in California when you earn the money then you don't pay California tax. If you are in California when you earn the money then you pay California tax. (I know there are reciprocity laws among some of the states but there aren't between California and Texas.)
- EpicEng 8y agook I misunderstood what you meant by "where [you earn it]". Still though, things get more complicated when you have residence in state A and spend a significant portion of your time working in state B. You're paying taxes which go to other people, regardless of whether or not you benefit partially. My kids don't get better schools, my family doesn't get better healthcare, etc.
- mandevil 8y agoIt famously applies to sportsball players as well: if you are an NBA player you pay Canadian taxes on the game check for all games in Toronto, and California taxes on your games in LA/SAC/OAK (and there are extra jock taxes and the like, but we don't need to go into that). A typical NBA player will file over 20 different tax returns for a single season.