Discussion:Online education "Nexus"
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| I would check with the client to find out whether any other state taxes have been withheld so far. If so, there may still be time to get that straightened out with the payers, at least going forward.}} | I would check with the client to find out whether any other state taxes have been withheld so far. If so, there may still be time to get that straightened out with the payers, at least going forward.}} | ||
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| + | {{ForumReplyPost|UserID=Diego|Date=10 October 2009|Text=Crow this is online teaching. | ||
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| + | Katie, yes thank you, no withholdings were made Just Box 15 and 16 filled in. | ||
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| + | Speaking of nexus, I have another one of those issues, client was an HR consultant based in Seattle, work for a MA company also online. He was fired, moved to California from Seattle and was the awarded money in an unfair dismissal claim, $150k, they issued him a W2 and withheld MA state taxes. What are your thoughts here? Sounds like this area is one of your interests. | ||
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| + | The SSF is quite interesting however I think making market based sourcing of intangible income elective means CA will not collect its share of income from intangible property earned by corporations doing business in CA. }} | ||
Revision as of 22:02, 10 October 2009
Discussion Forum Index --> Basic Tax Questions --> Online education "Nexus"
Discussion Forum Index --> Tax Questions --> Online education "Nexus"
| 9 October 2009 | |
| Client teaches at 13 different universities throughout the country. He does this from his desk in California. What is the position with filing in the various states. Any suggestions would be appreciated. | |
| October 9, 2009 | |
| None if he never leaves his desk. Some states might disagree, but generally there must be physical presence. | |
| 9 October 2009 | |
| Physical presence isn't necessarily required to create nexus for a business. See, e.g., Lanco, Inc. v Div. Of Taxation, New Jersey Superior Court, A.D. No A-3285-03T1 (2005), affirmed NJ Supreme Court, 188 NJ 380 (2006), cert. den. U.S. Supreme Ct. No. 06-1236 (2007) (Lane Bryant's Delaware trade mark/trade name licensing subsidiary had nexus with NJ); Tax Comm'r v. MBNA America Bank, West Virginia Supreme Court, 640 SE2d 226 (2006), cert. den. U.S. Supreme Ct. No. 06-1228 (2007) (nexus found for out-of-state financial services company through substantial in-state receipts from credit card customers). However, I've never yet heard of a case where a state asserted jurisdiction to tax an individual who had no property and had never set foot there. As states move toward assigning sales of services to the sales factor numerator of the state where the benefit of the service is enjoyed (e.g., California effective in 2011), though, I won't be surprised if states start asserting economic nexus with individual service providers.
For now, though, I don't think any state will assert jurisdiction over Diego's client. | |
| 10 October 2009 | |
| Thank you very much. My concern is that the intitutions issue W2's indicating the state wages and the respective states but we will cross that hurdle if it arrives I guess. | |
| 10 October 2009 | |
| This reminds me of the same fellow that keeps showing up on here that has 15 job, like the old skit on "In Living Color".
Now, he's teaching. Who is this person? The only man I can think of that teaches at 13 universities and never leaves his chair is Stephen Hawking. Well, maybe KatieJ, but even she'll get up and berate someone ever once and a while (which I heartily approve of). There's nothing I can think of that 13 people want to know, much less 13 universities (except, perhaps, a course in creative bank accounting). No sir, this fellow is up to something, and I won't rest till I figure out what it is (because I want in on it). | |
| 10 October 2009 | |
| Diego, if the universities do issue W-2s and withhold tax for the states where they are located, you'll have to file nonresident returns with those states to get the withholding back. California won't allow credit for those taxes because if the services were performed in California, the compensation is California source income.
I would check with the client to find out whether any other state taxes have been withheld so far. If so, there may still be time to get that straightened out with the payers, at least going forward. | |
| 10 October 2009 | |
| Crow this is online teaching.
Katie, yes thank you, no withholdings were made Just Box 15 and 16 filled in. Speaking of nexus, I have another one of those issues, client was an HR consultant based in Seattle, work for a MA company also online. He was fired, moved to California from Seattle and was the awarded money in an unfair dismissal claim, $150k, they issued him a W2 and withheld MA state taxes. What are your thoughts here? Sounds like this area is one of your interests. The SSF is quite interesting however I think making market based sourcing of intangible income elective means CA will not collect its share of income from intangible property earned by corporations doing business in CA. | |
