If I work for a California based company but live in Texas, do I have to pay California or Texas for state tax? What if I live in Mexico but still work for that California based company? Thanks!
You need to pay tax in CA and ask for rebate in your residence state. Since Texas does not have state taxes you won't get any rebate.
No. You pay taxes in your state of residence. If that’s TX, no state withholding should be deducted. If you reside in CA for a percentage of the year, you’ll need to file with them and there’s a complicated form you fill out to calculate the percentage owed; but it isn’t the full amount as if you were a full time CA resident. I currently do this myself, working full time remote in another state. Ask your HR rep!
Ugh this is absolutely wrong and completely incorrect. You pay zero state income tax. You are an employee in Texas per federal law. You pay zero to the shit hole California.
Texas tax in Texas (so, none), Mexico tax in Mexico. Nothing to California unless you live there.
Uncle Sam has some words about that depending on tax treaties between countries
Uncle Sam won't tax you if you don't have tax presence in US - unless you're their own citizen.
California thinks everyone owes tax to California. It’s probably worth an accountant. California will search out people who ‘might possibly’ owe CA taxes and send them a bill with what it guesses they might owe. Wife got a tax bill b/c she has a professional license in CA even though she had no contact with CA for a few years. We had to provide evidence of no CA income.
Maybe I should say that the California based company let me live anywhere I want. So if live out of California is because I chose, not because company required
Living the dream. ;) Bay Area wages while living in Texas.
I lived in NY and worked in NJ. Tax withholding happens for the state you work in, but at tax return time, it gets trued up to be per the tax rate of where you live, not where you work. So if California state tax was withheld from your checks, you'd get it all back in tax returns.
Not true if you work live WA work in a different state.
Boof
It depends where the business entity is located not where you live. If you live WA (no state or city income taxes) but work pay check comes from business entity in PA you have to pay PA income tax. However, it is automatically extracted from your paycheck.
No it does not! See examples above. Nj/NY is the only exception I know of with their fucked up credit system. However it gets complicated if you would want to do this internationally. Most countries will not allow employment via entity that is out of country. So you would have to get residency in a US state and just live down there....
I know the PA/WA case for a fact. Maybe other states it doesn’t but this happens to friend with every paycheck.
Tax rules vary by state. California is a source rule state, so if you work remotely for a California based location , you are going to pay California state taxes.
Are you an employee or contractor (freelance)? How much time do you spend in CA physically in a calendar year? Per you DL, what's your address? Per DMV, what's your and your car's address?
Full time employee. Will be in Texas most of the time (like 95%). I plan to get DL there and register my car there
I think in that case you would pay taxes only for Texas. But I'm not an expert so don't bet on this. My logic is, FB is based in Menlo Park (CA) but employees in Seattle, for instance, don't pay state tax for CA; only WA. That is, they don't pay any state tax; nothing is deducted from their paycheck as state tax.