State Taxes

3 posts · started Nov 1, 2006

rcoddman Nov 1, 2006, 4:27 PM
I posted this message in the nurses to nurses forum several days ago and got zero responses. I can't believe that I am the first person that ever thought of this or had the question. Maybe there is a recruiter out there that understands the system well enough to address my issue. Please read on:
I currently live in FL and I am considering starting some traveling. I understand the "tax advantage" program that is often mentioned in this board, but I have not seen anything about the tax implications for travelers who travel from a non wage tax state/city to a wage tax state/city. I am originally from PA and would love to take a job in my hometown of Pittsburgh, but PA and Pittsburgh both impose quite a hefty wage tax unlike FL. The "tax advantage" program certainly helps offset federal taxes but wouldn't help much if you were still obligated to pay state/city taxes on the non-taxed portion of pay (PA=3.07% Pittsburgh=1%). With this in mind, it would make sense to only work in states that don't require state/city wage tax. Does the location (state) of the agency factor into what state you pay taxes to? Where does pay check usually originate from: the agency or the hospital)? Is there anybody out there that can address my issue?

Thank you,
Rcoddman
RN turned Recruiter Jan 3, 2007, 10:18 PM
I don't know that I can answer your question directly but I'll try. I am a recruiter that does only permanent placement for RN's. If you are looking to relocate I possibly might be able to help. I do know when I did agency whatever state I worked in, the tax laws for that state were applied. Even though the agency cut the check and maybe it was out of state, wherever I was, those were the tax laws used. Sometimes it was a big cut. Hope that helps. Call me at 800-825-8620 Worldbridge Partners. Julie Bergen, RN, BSN.
INC Jan 21, 2007, 9:16 PM
Why only go halfway with the tax advantage? Go all the way and be an independent contractor. Take your assignments with http://www.independentnurse.com or http://www.hospitalsupport.com or any agency that will pay you pre-tax. Open a Nevada C-Corporation and pay no state taxes and no state corporate taxes and if you do it right no personal taxes. Everything that is ordinary and necessary to do your travel nursing is a tax deduction. Basically everything in your life. The worse tax position in the USA is an employee, yet 85% of people are employees. Make and keep more of your own money.
David