State Taxes for Interstate

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

The pay of an air carrier employee who has regularly assigned duties on an aircraft in at least two states (e.g. a pilot or flight attendant) is subject to income taxation by his or her state of residence and any state in which the employee earns more than 50% of the pay received. [49 U.S.C.S. §14503(b)(2). An air carrier employee is deemed to have earned more than 50% of his or her pay in a given state if the flight time worked by that employee within that state exceeds 50% of the total flight time worked by that employee while employed during the calendar year.

An individual may be able to claim a credit for any taxes paid to another state, when over 50% of pay is earned in another state.

Examples

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. The information provided herein should not be used as a substitute for consultation with professional advisers. Every situation may be unique, please contact us to discuss your particular situation.