Author Topic: TOURING: Touring tax question  (Read 3329 times)

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LizzG

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TOURING: Touring tax question
« on: Jun 20, 2010, 04:48 pm »
I was just hired to go out on my first tour - which I am so very excited for!  I do have a bit of a complicated tax question, and figured I would throw it out to this community and see if anyone had encountered a similar situation. 

The tour is for a year - July 29th 2010 through July 31st 2011.  The schedule is yet to be completely finalized, but it looks as though we will only have about 2 layoff weeks.  I am subletting my apartment In New Jersey for the duration of the tour (my lease ends on March 31st 2011), and will be using my friend's address for my mail.  Obviously, I will need to pay state taxes until I leave for the tour and after I come back, but my question is whether I will have to pay state taxes on my tour income considering I will be spending no time in my home state, and really, after March 2011 won't technically have a 'home'.
« Last Edit: Jun 20, 2010, 07:08 pm by Rebbe »

MatthewShiner

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Re: Touring tax question
« Reply #1 on: Jun 20, 2010, 06:41 pm »
I suggest talking to a tax professional . . . as, at the end of the year, you will be responsible for any advice given - better get it from a pro.
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nmno

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Re: TOURING: Touring tax question
« Reply #2 on: Jun 20, 2010, 07:27 pm »
Yes, speak to a tax attorney and speak to them BEFORE you go on tour because they may have advise on how to establish or disavow residency so you get the most money.  Trudy Durant has done taxes for the people I've been on tour with (she's not cheap but she knows the ins and outs of our business) and Equity does the VITA thing during tax season - although the season is closed, Equity might be able to point you in the direction of someone who can help for cheap since you are looking for general advice.

From MY experience, I lived in CA prior to coming out to IL to work on a long running show... Last year, although I hadn't worked a day in CA, hadn't been in CA except for a week at christmas and I didn't technically have a place to live there (I had used my parents address for some things) CA still wanted my money (several hundreds of $$) so I had to fudge to establish residency in IL (and I only had to pay $4).  Where is your driver's license? Where are you registered to vote? They'll probably use that as evidence of your "home" or they'll use New Jersey because of your lease (even though you are subleasing your name is still attached...).  You can't get away without paying state tax to SOME state.

LizzG

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Re: TOURING: Touring tax question
« Reply #3 on: Jul 01, 2010, 12:49 pm »
Thanks for the advice all.  I am planning on talking to a tax professional (if they ever get back to me, but that's another story), just figured I'd see if anyone else on these boards had a similar issue...

MatthewShiner

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Re: TOURING: Touring tax question
« Reply #4 on: Jul 01, 2010, 07:11 pm »
just be careful about taking advice here . . . as even if it is a similar situation has arisen, it may not line up.  That is why we wanted to be careful that you talk to a professional l about the specifics of your situation.  When thousands of dollars on the line . . . I think we will would feel terrible about if you got the wrong advice.
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Candy0081

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Re: TOURING: Touring tax question
« Reply #5 on: Jul 01, 2010, 09:59 pm »
Liz--

Congrats on the new job.  I have been on the road for three years and where I reside has mattered for some of my taxes and not for others. 

With one company I paid my taxes to my home state, (IA, where my folks live, where I vote and where my drivers license is) and the company I worked for paid my portion of tax to the state where I was employed in (MD/NJ depending on the tour).  When it came time to file for my unemployment it was very easy, I just contacted my home state and they contacted MD and along came my check. 

I have also been on a tour where we paid our taxes to each individual state we played (42 states!).  This created a bit of a nightmare at tax time.  I turned all of my W4s over to my accountant and he figured out where it was worth it for me to file and where it would cost me more to file.  This did create a bit of an issue when it came time to file for unemployment.  I had to contact NJ, where my employer was based out of and then NJ directed me elsewhere.  It was not ideal. 

If you have a choice in how you pay your taxes, which you probably do not as most company's have a policy, I would vote for paying all of your taxes to your home state.  (There are a few exceptions to this rule, such as MA and CA.)  It just makes things easier when you need to file unemployment and do your taxes. 

Feel free to send me a message if you would like to talk more about this. 

Tags: Touring  taxes 
 

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