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Teleworking in Georgia, moved to Texas

Forum|Forum|2 years ago
August 31, 2023
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I have been teleworking in Georgia 1.5 years for a major corporation where my assigned office is located a 100+ miles away. I have only gone into work once last year and once this year. I can continue working the same job and moved to Texas (no official state tax; however, state collects taxes via property ownership at 3% value of house, which is similar amount to the Georgia State income tax). I suspect even though my permanent residence is in Texas, unless I get my company to change my work address to an office in Texas, I will continue paying Ga State Income tax on top of my Texas property tax, is this correct?

If so, what classification must I request my company change me to?
Remote working instead of Telework, or is the only way I will not pay Georgia State Tax is re-assign me to an office in Texas or take another job?

TIA for the answer!

Best answer by TomD8

Q. So, if I understand the link you sent correctly, with my filing status "Married/RDP filing jointly no dependents, both are under 65" my threshold is $38,624 of Salary earned while I am in California?

A. No. Your filing threshold is $38,624 of total income, regardless of where earned. But, as others have said, CA will only tax the income earned in CA, not your total income.

Q. I sometimes travel to and work in other states. Am I required to file taxes and pay tax to those states.?

A. Yes, but almost "nobody" does. But you should.

See http://money.cnn.com/2013/06/28/pf/taxes/business-traveler-tax-threat/ If you live in a state without an income tax (e.g. FL or TX), it’s more likely you should file in the work states. You can't use the "it all comes out even" rationale for not filing.

Actually CA's filing thresholds for MFJ under 65 with no dependents are $38,624 of total gross income OR $30,901 of CA adjusted gross income. Exceeding either threshold gives you a filing requirement in California. These numbers are for the 2022 tax year and of course may change from one year to the next.

Every state with an income tax has a filing threshold for non-residents. The threshold amounts, of course, vary from state to state. Pennsylvania's filing threshold, for example, is only $33 of PA gross taxable income.

A number of states have a reciprocal agreement with neighboring states. A reciprocal agreement means that if you live in one of the states and work in the other, you only have to file a tax return in your home state. Reciprocal agreements are much more common in states east of the Mississippi. California does not have any reciprocal agreements. Nor, of course, does Texas.

DoninGA

Employee

What date did you become a Texas resident (month/year)?

H

howjltx1Author

@DoninGA wrote:

“What date did you become a Texas resident (month/year)? “

~May 15, 2023, I purchased a home in Texas and moved their shortly afterwards.

T

TomD8

Employee

Your employer's location is irrelevant. You're taxed based on where you actually (physically) perform the work. If you're a Texas resident, you can only be taxed by Georgia (or any other non-resident state) on the income you earn from work you actually perform within that non-resident state.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

H

howjltx1Author

I think you're correct, my company, is showing I am working out of Georgia, if they cannot show that I am working out of Texas, I will take my new offer out of Texas which is their competitor. They have the same job listing so I will offer to work for my existing company if they can match the new company's offer. Problem is I have to respond to the new job within "72 hrs" Well its Thursday so my calculation is I can put it off until at least Monday especially since the verbal off is less than the emailed offer, I should be able to buy some time with that.

Hal_Al

Employee

If your employer is unwilling to stop withholding GA tax, after you move, you'll just have to file a GA non resident return, each year, to get a refund. It's a minor (usually) hassle, but you will not end up paying GA income tax for the days you physically work in TX.

O

Opus 17

Employee

5 or 6 states charge income tax on some teleworkers, but Georgia is not one of them.

If you change your permanent residence to Texas, then starting on that date, you will only owe Georgia income tax on wages earned or paid while you are physically working or living in Georgia, such as if you work on-site a few days a year for essential meetings, training, and so on.

In the year you move, you would file a Georgia part-year resident return that reports and pays tax on all your world-wide income up to the date you moved, plus any on-site income you receive after the date of your move. In future years, you would file a Georgia non-resident return to only report and pay tax on Georgia-source (on-site) income.