tax advice.. State tax exemption for drivers

chopstic

Well-Known Member
Just a heads up for your upcoming tax filing. If you deliver across state lines you may be eligible to get some or all of your state income tax back. Search for the "Amtrak Exemption". If you drive your package car across state lines you are considered to be working in both states, but by federal law you only have to pay the state tax of the state you live in if you drive a commercial vehicle. This works great where I live (washington) with no income tax. I work in oregon as an air driver but I frequently find myself delivering a few E.A.M. packages across the border to washington. So I qualify to only pay my home state's income tax, which is nothing because we only have sales tax here in washington. I encourage you to search for this exemption if you think you may qualify, it makes for one hell of a tax refund.
 

dannyboy

From the promised LAND
I would strongly advise consulting with a tax professional (no, not the H&R Block guys in the kiosk at WalMart) before following this tax advice.
I would as well.

Here, since the center is in Virginia where they have a state income tax, and I live in tennessee which does not, and the only time I am in Virginia is the am, pm times and the 12 minute drives to and from the border, the state of Virginia has the right to access out of state income tax on 13% of the wage.

That basically amounts to about 80 bucks a year.

Try your plan here, you would be in trouble.

But since you bring up a tax issue, i have a question for you?

Since we drive and deliver interstate goods, are we covered under the DOT rules for hours of service etc?

I have heard both ways. Have yet to talk to anyone that can make a good argument either way.

d
 

chopstic

Well-Known Member
I would as well.

Here, since the center is in Virginia where they have a state income tax, and I live in tennessee which does not, and the only time I am in Virginia is the am, pm times and the 12 minute drives to and from the border, the state of Virginia has the right to access out of state income tax on 13% of the wage.

That basically amounts to about 80 bucks a year.

Try your plan here, you would be in trouble.

But since you bring up a tax issue, i have a question for you?

Since we drive and deliver interstate goods, are we covered under the DOT rules for hours of service etc?

I have heard both ways. Have yet to talk to anyone that can make a good argument either way.

d

As long as you meet the requirements it doesn't matter how long you work in each state. If you qualify, ALL your income from this job will be taxed by your state of residence ONLY, which means Virginia would have to refund you all your state tax withholdings. Its a federal regulation, so it takes precedence over each states tax laws.

I 'm not saying to just take the exemption on my word, but you would be an absolute fool to not even research it out. here is a link to info from the Oregon IRS website, but the law is not specific to Oregon it applies to the whole U.S.
 

over9five

Moderator
Staff member
I have heard of New Hamshire residents who drive out of Mass doing this. I believe UPS even supplies them with some kind of form for this.

Definately worth checking out.
 
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