Texas resident helicopter pilot flying in Gulf of Mex from Louisiana base... Do I pay LA state income tax?
The new LA state income laws seem to dictate that all money/earnings/gambling winnings are subject to LA state tax, regardless of state of residence. I am a helicopter pilot and spend most of my time in international waters, although I am technically based out of LA. Any information on paying LA income tax for this scenario?
Public Comments
- You do out-and-backs from LA so LA is where you work. LA is entitled to tax your wages as far as they are concerned since you work from LA. Being out over international waters gets you nothing in the way of tax treatment. You'd have to be resident in a foreign country for more than 330 days per year to get any benefit from being outside of the US.
- Dear Matt: I was a pilot based in NY, paid out of TX and lived in NJ flying in Europe. I paid only NJ tax because of residence. If TX had an income tax your total income would be taxed in TX with a credit for tax paid in LA, but since TX doesn't have a tax only LA will tax your income. You do live there even if it's temporary, so file as non-resident. International water doesn't cut it unless you qualify for an exclusion of being out of the country more than 300 days in a calendar year. This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent Master Tax Advisor
- International waters wouldn't cut it either as an excuse that you were out of the country. Foreign earned income rules kick in only when you are in another country. Even being in Antarctica doesn't count.
