Tax Issues for Nomadic Consultants
Today Fortune small business columnist Anne Fisher posted a column entitled, "What tax issues face nomadic workers?" (Ask FSB). The column was answering a reader's question regarding packing up his wife and kids into and RV and working whereever and whenever.
I chuckled because I am a technical mercinary and I know first hand about some of the issues. I go where the best opportunities are; maybe three months here and six months there. You jump into a quagmire of state and federal laws, rules, and regulations. To comply with the legal and tax issues is tedious.
I should know, I had to learn the hard way by asking for advice and researching.
A Simple Example
I took a contract working for a body shop (as a W2 employee) that was located in Florida. They did my payroll from their office in Maine. I was working for a client in Connecticut. My residence was still in Texas. My car was registered in Texas, but I derived all of my income while I was physically working in CT.
Here are some issues that came up. I will post the answers in other posting if anyone is interested:
Did I have to file an income tax return in CT? Am I required to have state income taxes withheld from my paycheck?
My (Texas) car inspection and registration expired while I was in CT. What do you do when your car registration expires and you are out of state?
My drivers license is about to expire. Which state do I get it in?
If you file for unemployment which state do you collect from?
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