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Worked in 8 States, Taxes are a Nightmare

2,104 Views | 11 Replies | Last: 1 yr ago by Chipotlemonger
3rd and 2
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AG
I don't know why, but my company has started reporting my W2 earnings state-by-state. I have 8 W-2s now. I didn't notice them doing this before.

I did all my taxes on Turbotax and my bill for doing all my state taxes and federal taxes is $600. For example, I owed PA $2 and doing the PA taxes in Turbotax costs $59. /facepalm

I'm thinking of just skipping all these state taxes, but reading online the states can go after me for fees and penalties and whatnot. I don't remember having to break out all my taxes state-by-state before.

What do you guys that work in multiple states do as far as your tax situation?

Edit, more info: I never actually was paid directly by companies in different states. Those companies paid my company who then turned around and paid me.

Edit#2: apparently I've received these multi-state tax docs for years and am just noticing /shame
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Malibu
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I have K-1s from lots of different states and have to do several state filings. I just save all of my documents and give them to my tax CPA and let them send me the bill. When they do my return, I get a cover page that itemizes how much I owe every state, and the next pages are vouchers for me to cut checks and mail or pay online to the correct state authorities. The CPA bill is for their hourly and not for a per state fee.

With what you're doing it sounds like you shouldn't be using TurboTax anymore and should pay someone to deal with the headaches.
Malibu
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One more piece of advice, since you have all this extra complexity with your work float it with your company to pay for your tax return.
Hanrahan
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AG
YouBet
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AG
3rd and 2 said:

I don't know why, but my company has started reporting my W2 earnings state-by-state. I have 8 W-2s now. I didn't notice them doing this before.

I did all my taxes on Turbotax and my bill for doing all my state taxes and federal taxes is $600. For example, I owed PA $2 and doing the PA taxes in Turbotax costs $59. /facepalm

I'm thinking of just skipping all these state taxes, but reading online the states can go after me for fees and penalties and whatnot. I don't remember having to break out all my taxes state-by-state before.

What do you guys that work in multiple states do as far as your tax situation?

Edit, more info: I never actually was paid directly by companies in different states. Those companies paid my company who then turned around and paid me.

Edit#2: apparently I've received these multi-state tax docs for years and am just noticing /shame
Get a CPA.
gigemhilo
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AG
Admiral Adama said:

I have K-1s from lots of different states and have to do several state filings. I just save all of my documents and give them to my tax CPA and let them send me the bill. When they do my return, I get a cover page that itemizes how much I owe every state, and the next pages are vouchers for me to cut checks and mail or pay online to the correct state authorities. The CPA bill is for their hourly and not for a per state fee.

With what you're doing it sounds like you shouldn't be using TurboTax anymore and should pay someone to deal with the headaches.
This
mosdefn14
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AG
I do my own taxes and consider myself quite capable in understanding tax complexities. My mother and FIL are both CPAs but I don't feel like bothering them to do it.

However during a previous life of management consulting, my company paid for EY to do your tax return if we triggered a tax liability in more than 2 states. They would figure my total tax liability based on my home state (Texas), and then with each extra state. They'd issue a true up payment (plus taxes) to make me whole.

A couple of years I only had to file in Virginia, and that was easy enough to do, so those years I just Turbo Taxed it.
Picard
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AG
Find a new employer

UTExan
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I would rather go to a flat tax based on income, taken off the top at time of payment/wages and not have to file any end of tax year federal or state paperwork unless you are requesting a refund. The time spent doing taxes is just stupid.
It is better to light a flamethrower than to curse the darkness- Sir Terence Pratchett
“ III stooges si viveret et nos omnes ad quos etiam probabile est mittent custard pies”
JamesBREI06
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AG
The stupidity of government never ceases to amaze me.
BenTheGoodAg
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AG
3rd and 2 said:

What do you guys that work in multiple states do as far as your tax situation?

Edit, more info: I never actually was paid directly by companies in different states. Those companies paid my company who then turned around and paid me.
I find this thread really interesting - and hate it for you.

There must be some differences in the type work you are doing. I worked for an A/E firm, and did work all over the country. Mostly from a home office in Texas, but not without some travel for walkdowns, client visits, factory visits, etc. It just seems like this could set you up for a lot of weird dynamics. For example, If your company is assigning you work all over the country, and your peer in your home state, you could have dramatically different tax liabilities.

I'm clearly not educated on where the line is. I hope your company makes it worth it for you.

Chipotlemonger
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AG
Great gif response
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