My W2 arrived in the mail a few days ago and that got me to wondering, do train crews have to pay taxes in every state they work and make money in? For example of your run takes you from Boston to Balitmore, would you have to pay income taxes in Massachusetts (pardon my spelling), Maryland and every state in between or just your state of primary residence?
I ask because a friend of mine worked in New Jersey but lived in New York and had to pay income taxes in both. I could see this giving any tax preparer a headache.
This depends on the states involved. States may withhold taxes for the proportion of the work done in that state. My first year I had a bit of Wisconsin income tax withheld, and a tiny bit of Iowa as well. At that time, Illinois had an agreement with adjoining states to accept payments on their behalf–so I paid Illinois tax and got full refunds of money withheld from the other two states.
At least that’s the way I remember it–maybe our resident tax expert will peek in here and offer some insight.
you will only have to pay state income tax to the state in which you live…but in some states…and citys…you may have to pay a % local tax to the township in which your terminal is located… also some towns and citys make people working in them pay a right to work tax… the 2 mentioned above are normaly about 1% of your gross income… that % im taking it can very on the tax codes in the citys and townships there the terminal might be located…
csx engineer
About 10 or 12 years ago, Idaho tried to tap BN crews for income taxes. The train crew changes were in Montana and Washington, with no stops in Idaho. Washington does not have state income tax. And then interstate truck drivers were brought into it as well. Many months passed with no agreements. Then Washington tax people threatened to force Idaho residents who worked in Washington, to buy WA plates for their cars. State employees would patrol the workplaces and issue tickets.
That brought about the agreement that exempted train crews and truck drivers if no loads were picked up or dropped off while passing through Idaho.
I live in Ohio and work for a shortline in Michigan and the only taxes taken out are for Ohio.
Adrian & Blissfield?..as a guess
while a trainman for CSX in Michigan I worked to Chicago and Toledo only paid MI state income tax…and % of time on the Ensel Yard extra board in Lansing MI i had to pay city tax…even though I didnt live in the city limits…$%#@*& government[soapbox]