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Level 2

I need to know how I can get taxes from2013, California is trying to make me pay taxes on income i earned in Texas, what should i do ? wages garnished?

 
6 Replies
Level 18

I need to know how I can get taxes from2013, California is trying to make me pay taxes on income i earned in Texas, what should i do ? wages garnished?

were you a California resident when you earned income in Texas?  if so, you owe the taxes.  if  not

you can contact Audit Defense. there will be a fee if you did not sign up for it for your 2013 return 

The Audit Defense service is provided by TaxResources, Inc., also called TaxAudit.com, in partnership with TurboTax. If you paid for Audit Defense and you received an IRS notice, call TaxResources, Inc. at 877-829-9695, or report your IRS notice on their web site at http://intuit.taxaudit.com/. Do not contact the IRS until you have spoken to TaxResources. They may contact the IRS on your behalf.

 

 

while this uses IRS it would also apply to California. 

 

 

Level 20

I need to know how I can get taxes from2013, California is trying to make me pay taxes on income i earned in Texas, what should i do ? wages garnished?

 

If you live in one state and work in another state; that income is subject to taxation by both states. This is how it works in all states (in most cases): You file a nonresident return for the state you worked in, reporting only the income you earned there.  Your home state will give you a credit, or partial credit, for what you paid the non-resident state. Since TX does not have an income tax, you do not have a non-resident return to file. But you still have to pay tax on that income to your home state (CA). 

 

 

 

 

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Level 20

I need to know how I can get taxes from2013, California is trying to make me pay taxes on income i earned in Texas, what should i do ? wages garnished?

CA is soooooo   poor that they recently changed the rules and seem to be going after anyone who got a 1099 from a CA source for back taxes ... this may not hold up in future court cases ... a wait and see position may be needed.   So if you recently got a letter from CA for old income ...

 

 

The fact that a non-resident independent contractor who provides services to CA businesses must pay CA taxes on that income is a very recent development, and is due to two court decisions made this year (2019) - the most recent of which was a month ago. 

 

Thus it's very possible that you may run across older answers on this board that were correct at the time, but are correct no longer.  

 

You can read the details of those court decisions here:  https://www.coblentzlaw.com/california-office-of-tax-appeals-gives-precedential-authority-to-bindley...

 

 

In May 2019, the California Office of Tax Appeals ruled very recently that income from California-based clients is taxable as California source income.

 

For some discussion:

https://www.coblentzlaw.com/california-office-of-tax-appeals-gives-precedential-authority-to-bindley...

 

https://money.stackexchange.com/questions/95243/is-self-employed-work-performed-out-of-state-for-a-c...

Level 2

I need to know how I can get taxes from2013, California is trying to make me pay taxes on income i earned in Texas, what should i do ? wages garnished?

I lived in Texas working oil field, then we decided to move to cali octoberish, I then got a job at a tree service, I hadn't earned very much so when I did fed. taxes, i didn't file state since texas had non, now cali is trying to tax me for everything  it just seems rediculous

 

Level 2

I need to know how I can get taxes from2013, California is trying to make me pay taxes on income i earned in Texas, what should i do ? wages garnished?

I lived in Texas working oil field, then we decided to move to cali octoberish, I then got a job at a tree service, I hadn't earned very much so when I did fed. taxes, i didn't file state since texas had non, now cali is trying to tax me for everything  it just seems rediculous

Level 20

I need to know how I can get taxes from2013, California is trying to make me pay taxes on income i earned in Texas, what should i do ? wages garnished?

Your mistake was not filing a CA return, at all.  It was required.  Your 2nd mistake was not addressing the first letter you got from CA ("wages garnished"). You now need to prepare a part year resident 2013 CA return, correctly calculating the tax on only your CA income and get that to the CA tax people. At this stage, You probably need a tax pro to help you. 

 

You say "I lived in Texas working oil field".  If you moved to TX, from CA, for a temporary job, and then moved back to CA, you would be considered a full year CA resident for tax  purposes