State Tax Examples

Interstate Transportation and Commerce Employees are subject to special rules of taxation.

Example 1:

Jim is a resident of state X who works as a pilot for a national airline. He flies various routes and does not fly more than 50% of the time in any one state. He will report all of his income to State X and not file an income tax return in any other state.

Example 2:

Kathy is a resident of State X who works as a pilot and primarily flies routes between San Diego, Sacramento, and Los Angeles. Her California flight time is computed at 70%. She will pay California income tax on 70% of her pilots pay. She will pay State X tax on all of her income, but will be eligible for a credit for tax paid to California.

Example 3:

Sandy is a nonresident of Colorado who works as a flight attendant primarily on flights between Denver and Aspen. Her Colorado flight time is computed at 90%. She will pay Colorado income tax on 90% of her flight attendants pay. Typically She will be allowed credit (if an income tax exists) in her state of residence for the tax paid to Colorado.

Berman Cook is providing the information on this web site for general guidance only. This general information is provided to represent a good faith effort to provide accurate and complete tax information. Each state may have different requirements to fullfill any tax reporting requirements for that state. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Every situation may be unique, please contact us to discuss your particular situation.