mac5155 wrote:So my fiancee worked in Ohio for training for 6 weeks this year, and while there she was taxed at an Ohio state rate. Are state taxes like local taxes where they forward them back to your home residence or will she have to file a return for Ohio as well?
Additionally she received cash payments for mileage and food while there - (straight cash, no checks). Does she have to enter these? Someone will be preparing her taxes but I feel like we should tell him as much info as I know.
I'm not an accountant, but that sounds wrong. The company shouldn't have taken Ohio state taxes out if her residence of record was PA.
I had a job for a number of years where I was on assignment for 6-9 months at a time. In fact from 1996-1999, I think I spent a total of 40 nights in my own house. I was in NY(x2), Mass., Ohio, And Rhode Island for those assignments. The entire time my residence of record was PA and I was dinged for PA state taxes.
Your finacee should be entitled to an Ohio refund (she has to file) but she'll also be obligated to file for that period on PA.
As for the cash payment, those are business expense reimbursements and aren't subject to individual income tax.
Just remember, I'm not an accountant and have, in fact, gone multiple rounds with the IRS. Consult your own accountant for professional advice.
Edit: Maybe KtK can chime in, (or NAN) they're much more qualified to comment.