Calling all accountants..Tax Question

[MONK_in_HOF]

Ok, here is my situation.

My primary employer which I am consulting for has screwed up my tax filing status and had me listed as a CA employee for 2006, even though I am a MD resident. Therefore all state withholdings on my earnings have been in CA. Now I am assuming I have to file my tax a tax return in CA which includes all the withholdings from that state. I am also assuming that I have to file a MD state return, even though I have no withholdings in MD for 2006. So I am thinking my MD return will be blank with no earnings or withholdings to report.

Can anybody confirm my assumptions or point me in the right direction on this? Of course this happens the one year I last minute my taxes.

[lakewinola]

No, you owe MD taxes, you will have to pay MD for taxes on all of your earnings. You will also be able to file for CA and recieve a refund for all of the taxes that your employer withheld and gave to the CA state.

In short, you need to pay MD now, and wait for CA to cut you a check.

[MONK_in_HOF]

No, you owe MD taxes, you will have to pay MD for taxes on all of your earnings. You will also be able to file for CA and recieve a refund for all of the taxes that your employer withheld and gave to the CA state.

In short, you need to pay MD now, and wait for CA to cut you a check.

Thanks for the info.

I like the sounds of that much better than what I was hearing previously. My tax filing status is very basic and hasn't changed for some time. Under my status and MD tax laws I normally received a little back, usually around $100. Under CA tax laws, and basically the same earnings as the previous year, I owe over 1k. This was an unexpected cost to say the least.

[lakewinola]

Thanks for the info.

I like the sounds of that much better than what I was hearing previously. My tax filing status is very basic and hasn't changed for some time. Under my status and MD tax laws I normally received a little back, usually around $100. Under CA tax laws, and basically the same earnings as the previous year, I owe over 1k. This was an unexpected cost to say the least.

Yup, think of it this way, MD will not allow you to pay taxes in any other state period, if you worked the entire year in MD.

[lakewinola]

I think this is probably the form you need for CA.

http://www.ftb.ca.gov/forms/06_forms/06_540nrlong.pdf

[lakewinola]

Also, you'll want your employer to fix this year's right away! And, I'd call the CA department of revenue to confirm the exact forms that you'll need to file.

[MONK_in_HOF]

Also, you'll want your employer to fix this year's right away! And, I'd call the CA department of revenue to confirm the exact forms that you'll need to file.

Thanks a lot for all the info and links. I will take every step possible to reimburse my losses due to my employer's error. I have been properly re-designated as a MD employee since I noticed this screw up.