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State Tax Dilemma

My son, the PhD candidate, has a state tax problem, which translates to a $$ problem for me. In the summer of 2004, he taught a summer course in PA. His school (Johns Hopkins U) withheld tax for PA, and he filed returns for PA and for DC, where he lives. No problem. In 2005, he taught courses in DC, but JHU records still showed him working in PA and withheld $200 accordingly. He had not stepped foot in PA. He appealed to JHU, but they showed no interest in correcting their error. He had no choice but to pay the full DC tax. In 2006, he once again taught in DC; and once again JHU withheld for PA, this time for about $500. Again, he had no choice but to pay full tax of about $750 to DC. He also filed a PA return showing zero PA income and accompanied by an explanatory letter and a copy of his contract to teach in DC. (JHU once again exhibited no interest in issuing a corrected W-2 or in correcting its records.) He does not itemise on his federal return, so there is no relief to be had there. Any suggestions of how to proceed -- short of smiting the JHU people upside the head -- will be appreciated. Thanks Bill

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Reply to
William Brenner
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I vote for whooping up on the payroll people. But first, he should talk politely to whomever is giving him summer contracts. High probablity that person was a Ph.D. student and will empathize with him.

Dick

Reply to
Dick Adams

Since he's aware that there's a problem in Hopkins's files, maybe one of these years it will occur to him to be, as we say in Washington, proactive. Why not give them a DC equivalent of the W-4 at the start of the contract? If he continues to wait until he gets the W-2 it will continue to be too late for payroll to fix it.

-- Phil Marti Clarksburg, MD

Reply to
Phil Marti

I hope he also filed a nonresident return with PA for 2005 and got his withholding back. If he hasn't done that, he needs to. That's really your only recourse if you can't get the university's payroll department to change its records. Has your son actually gone to the payroll office and complained in person? All it will take, probably, is for someone to change one field in his employee record. It shouldn't be a big deal; they just don't want to be bothered. As long as the university continues to withhold PA tax on his DC earnings, he should be making estimated tax payments to DC if he wants to avoid penalties for underpayment of estimated taxes. Katie in San Diego

Reply to
Katie

File Pennsylvania returns to get refunds of the overwithheld amounts.

Reply to
Bill Brown

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