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croderyfa
New Member

Live in Texas, but has GA state taxes withheld

I am a Texas resident. My Texas based employer withheld state taxes for GA for 2016 which was my fault. How can I file to receive withheld state taxes from GA?
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Live in Texas, but has GA state taxes withheld

Taxpayers who regularly work in interstate transportation are subject to special rules of taxation. 

These special rules are based on federal law enacted to deal with the unique nature of these industries. [Title 49, Subtitle VII, United States Code] INTERSTATE AIRLINE EMPLOYEES The pay of an air carrier employee who has regularly assigned duties on an aircraft in at least two states (for example, a pilot or flight attendant) is subject to income taxation by their state of residence and any state in which the employee earns more than 50% of the pay received. [49 U.S.C.S. §14503(b)(2).] An air carrier employee is deemed to have earned more than 50% of their pay in Colorado if the flight time worked by that employee within Colorado exceeds 50% of the total flight time worked by that employee while employed during the calendar year. A Colorado resident who works for an airline will always include their wages in Colorado taxable income, even if more than 50% of the income is earned in another state. The individual may be able to claim a credit on the Colorado return for any taxes paid to that other state. 

Example 1: Ron is a Colorado resident who works as a pilot for a national airline. He flies various routes and does not fly more than 50% of the time in any one state. He will report all of his income to Colorado and not file an income tax return in any other state. 

Example 2: Kathy is a Colorado resident who works as a pilot and primarily flies routes between San Diego, Los Angeles and San Francisco. Her California flight time is computed at 70%. She will pay California income tax on 70% of her pilot’s pay. She will pay Colorado tax on all of her income, but will be eligible for a credit for tax paid to California. 

Example 3: Tony is a nonresident of Colorado who works as a flight attendant primarily on flights between Denver and Aspen. His Colorado flight time is computed at 90%. He will pay Colorado income tax on 90% of his flight attendant’s pay. 

Example 4: Terri is a nonresident of Colorado who works as a flight attendant based at Denver International Airport. Her Colorado flight time is computed at 35%. She is not required to file a Colorado income tax return even though she is based in Colorado. Wage Withholding An air carrier must withhold Colorado tax from any interstate airline employee who is a resident of Colorado or a nonresident who earns over 50% of his or her wages in Colorado. [49 U.S.C.S. § 40116(f).]

https://www.colorado.gov/pacific/sites/default/files/Income61.pdf

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6 Replies

Live in Texas, but has GA state taxes withheld

Did you work in GA?

Live in Texas, but has GA state taxes withheld

I see from your other Q that you are a flight attendant. Each state has its own rules about who must pay state taxes.
croderyfa
New Member

Live in Texas, but has GA state taxes withheld

I didnt work in Georgia at all.

Live in Texas, but has GA state taxes withheld

If you had withholding for a state that was a mistake then you will file a non resident return to get the erroneous withholding back.
croderyfa
New Member

Live in Texas, but has GA state taxes withheld

Thank you so much Critter#2!

Live in Texas, but has GA state taxes withheld

Taxpayers who regularly work in interstate transportation are subject to special rules of taxation. 

These special rules are based on federal law enacted to deal with the unique nature of these industries. [Title 49, Subtitle VII, United States Code] INTERSTATE AIRLINE EMPLOYEES The pay of an air carrier employee who has regularly assigned duties on an aircraft in at least two states (for example, a pilot or flight attendant) is subject to income taxation by their state of residence and any state in which the employee earns more than 50% of the pay received. [49 U.S.C.S. §14503(b)(2).] An air carrier employee is deemed to have earned more than 50% of their pay in Colorado if the flight time worked by that employee within Colorado exceeds 50% of the total flight time worked by that employee while employed during the calendar year. A Colorado resident who works for an airline will always include their wages in Colorado taxable income, even if more than 50% of the income is earned in another state. The individual may be able to claim a credit on the Colorado return for any taxes paid to that other state. 

Example 1: Ron is a Colorado resident who works as a pilot for a national airline. He flies various routes and does not fly more than 50% of the time in any one state. He will report all of his income to Colorado and not file an income tax return in any other state. 

Example 2: Kathy is a Colorado resident who works as a pilot and primarily flies routes between San Diego, Los Angeles and San Francisco. Her California flight time is computed at 70%. She will pay California income tax on 70% of her pilot’s pay. She will pay Colorado tax on all of her income, but will be eligible for a credit for tax paid to California. 

Example 3: Tony is a nonresident of Colorado who works as a flight attendant primarily on flights between Denver and Aspen. His Colorado flight time is computed at 90%. He will pay Colorado income tax on 90% of his flight attendant’s pay. 

Example 4: Terri is a nonresident of Colorado who works as a flight attendant based at Denver International Airport. Her Colorado flight time is computed at 35%. She is not required to file a Colorado income tax return even though she is based in Colorado. Wage Withholding An air carrier must withhold Colorado tax from any interstate airline employee who is a resident of Colorado or a nonresident who earns over 50% of his or her wages in Colorado. [49 U.S.C.S. § 40116(f).]

https://www.colorado.gov/pacific/sites/default/files/Income61.pdf

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