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going part time telecommuting

Hi

I had posted here before, but things have changed, so asking again.

I have gone from being full time employee to doing work for my previous employer on a part time basis

The company is in California. I am a US Citizen, but out of the country at present. Working by telecommuting Working using my equipment (laptop, internet connection) Working during my timezone hours with a partial overlap with PST/PDT Working only two days at most in a week. Working 20 hours or less per week depending on demand.

They are paying me as a Texas Sole Proprietor

I understand I have to pay US federal SS and US federal income tax. My question is do I owe any Texas taxes on my income?

At present I only have a PO box in Texas.

Basically what do I owe Texas for doing software development telecommuting work as a Texas Sole Proprietor.

If that's not the best thing to do, any suggestions for my circumstances.

-Antony

Reply to
Antony
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Depending on the facts, maybe they should be paying you as a Texas employee. This means that they will withhold federal taxes, with social security and medicare, pay their portion of social security and medicare, pay FUTA etc. Your salary might be less as an employee (because the employer pays social security, medicare, FUTA out of their funds), so in practice it might make no difference.

No, Texas has no state income tax for individuals!

What was the last state you lived in before you moved to the US? Do you plan to return to the US, and if so to which state? The reason I'm asking is the state, say CA, may claim that you never really left CA and were just away from it on a temporary basis, and then say you owe state tax for those years you were out of the country but still a CA resident.

Reply to
removeps-groups

Depending on the facts, maybe they should be paying you as a Texas employee. This means that they will withhold federal taxes, with social security and medicare, pay their portion of social security and medicare, pay FUTA etc. Your salary might be less as an employee (because the employer pays social security, medicare, FUTA out of their funds), so in practice it might make no difference.

No, Texas has no state income tax for individuals!

What was the last state you lived in before you moved to the US? Do you plan to return to the US, and if so to which state? The reason I'm asking is the state, say CA, may claim that you never really left CA and were just away from it on a temporary basis, and then say you owe state tax for those years you were out of the country but still a CA resident.

Reply to
removeps-groups

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