Question about pilot taxes....

[Way2Broke]

Does a pilot have to pay STATE tax in the state in which the company he/she works for or in the state in which he/she is a resident of?

 

[Princedietrich]

It depends on the state.

I know that if you live in Ohio, you pay the state tax for Ohio. When I lived in Michigan but worked for a company in Ohio, I paid the Michigan state tax.

The department of taxation for each state usually has a website or a help desk of some sort that can clarify FAQs such as this one. It never hurts to ask, especially when it comes to properly feeding the beast known as the tax man so that you don't get bitten later.

 

[Way2Broke]

55,260. Interstate Transportation Employees
Special considerations involve the taxation of employees involved in
interstate taxation. Federal rules have been promulgated because of the
unique multijurisdictional nature of the activities of such employees.
Interstate air carrier employees: Compensation paid by an air carrier to employees
having regularly assigned duties on aircraft in more than one state for their services, including
compensation paid by an air carrier to employees in connection with their authorized leave or
other authorized absence from regular duties on the carrier's aircraft in order to perform
services on behalf of their employee's airline union, is subject to income taxation only by: (1) the
state (defined as any U.S. state, the District of Columbia, and any U.S. territory or possession)
or political subdivision of the state that is the residence of the employee; (2) the state or political
subdivision of the state in which such employee earns more than 50% of the pay which such
employee received from the carrier during the preceding calendar year; and (3) the state or
political subdivision of the state in which such employee's scheduled flight time would have
exceeded 50% of such employee's total scheduled flight time for the calendar year had such
employee been engaged full time in the performance of regularly assigned duties on the
carrier's aircraft. [49 USCS 40116(f)(2); 49 USCS 40116(f)(3) ; 49 USCS 40116(f)(1)(A); 49 USCS
40116(f)(1)(B).] An air carrier employee is considered to have earned more than 50% of his or
her pay in a particular state or subdivision if the time worked by that employee within such state
or subdivision exceeds 50% of the total time worked by that employee while employed during
the calendar year. [49 USCS 40116(f)(1)(C).]
Interstate seamen and ship crew members: Federal law, P.L. 106-489, effective