What About State Income Tax For Tax Turtles?

Topic 31264 | Page 1

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Jay R.'s Comment
member avatar

Just found out about something called Tax Turtles, or what the IRS classifies as an itinerant worker, but I could not find too much on it except that it is more of a tax burden to be classified as one but mainly due to not being able to take per diem. I have not yet seen anything in regards to state income tax for tax turtles. Being that I already am not a fan of per diem anyway, if that’s the best reason for not being a tax turtle then I would rather be one and not pay state income tax, if that’s what it comes down to. But as of yet, I’ve seen very little on the topic & NOTHING so far as to how their state income tax would be calculated for a person that truly does live in their truck from state to state as a company driver.

After answering the above, now what if their car is parked in a specific state’s terminal? Does that change anything even though their whole livelihood is in the truck anyway with no actual home? Would it come down to where their car is parked whether at a terminal or a friends house?

So yes, if you can answer both from the perspective of if they have no car & also is if all they have is a car in a specific terminal or location, that would be great. And of course, sources & links would also be helpful. Thanks.

Terminal:

A facility where trucking companies operate out of, or their "home base" if you will. A lot of major companies have multiple terminals around the country which usually consist of the main office building, a drop lot for trailers, and sometimes a repair shop and wash facilities.

Per Diem:

Getting paid per diem means getting a portion of your salary paid to you without taxes taken out. It's technically classified as a meal and expense reimbursement.

Truck drivers and others who travel for a living get large tax deductions for meal expenses. The Government set up per diem pay as a way to reimburse some of the taxes you pay with each paycheck instead of making you wait until tax filing season.

Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.

We have a ton of information on our wiki page on per diem pay

Mikey B.'s Comment
member avatar

I asked Google "What is a tax turtle" and a ton of info came up. Try that, tons of info available with a simple query.

You must have a address for your CDL , whatever address you use is considered your home and you will be governed by that states tax laws. Where your car is parked is irrelevant. Have a car or don't, matters not.

CDL:

Commercial Driver's License (CDL)

A CDL is required to drive any of the following vehicles:

  • Any combination of vehicles with a gross combined weight rating (GCWR) of 26,001 or more pounds, providing the gross vehicle weight rating (GVWR) of the vehicle being towed is in excess of 10,000 pounds.
  • Any single vehicle with a GVWR of 26,001 or more pounds, or any such vehicle towing another not in excess of 10,000 pounds.
  • Any vehicle, regardless of size, designed to transport 16 or more persons, including the driver.
  • Any vehicle required by federal regulations to be placarded while transporting hazardous materials.
Sid V.'s Comment
member avatar

Not too familiar with what a tax turtle is, but from what I'm reading it is a negative, as in you lose tax breaks if you are one.

As an o/o, my cpa says I can not claim 365 days out or I actually lose my per diem because per diem is your daily allowable expense away from home, and if you spend too many days out then you don't really have a home.

I would seek a cpa if you had any questions as I am not a cpa.

Per Diem:

Getting paid per diem means getting a portion of your salary paid to you without taxes taken out. It's technically classified as a meal and expense reimbursement.

Truck drivers and others who travel for a living get large tax deductions for meal expenses. The Government set up per diem pay as a way to reimburse some of the taxes you pay with each paycheck instead of making you wait until tax filing season.

Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.

We have a ton of information on our wiki page on per diem pay

Jay R.'s Comment
member avatar

@Mike B. I did try that, but nothing as far as state income tax is concerned. If it comes down to what it says in the CDL even tho you might not live there at all, then maybe that’s why.

CDL:

Commercial Driver's License (CDL)

A CDL is required to drive any of the following vehicles:

  • Any combination of vehicles with a gross combined weight rating (GCWR) of 26,001 or more pounds, providing the gross vehicle weight rating (GVWR) of the vehicle being towed is in excess of 10,000 pounds.
  • Any single vehicle with a GVWR of 26,001 or more pounds, or any such vehicle towing another not in excess of 10,000 pounds.
  • Any vehicle, regardless of size, designed to transport 16 or more persons, including the driver.
  • Any vehicle required by federal regulations to be placarded while transporting hazardous materials.
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