Can this be? I owe CA taxes on days spent in the US on business???

So I get my tax return back from the accountant. According to them I owe 959 USD California tax for the 17 days I spent traveling on business in CA last year.

This doesn't sound right. After all, business trips are part of my overall compensation by my UK employer. I didn't have any US income in 08.

Anyone ever came across this? What to do? I can't get hold of the accountant but need to FedEx the tax return today. 

Thank you.

Yes, I have experienced this too. I used to be a road manager for a musician, and I was given a separate W-2 form for the dates that were played in California AND had to pay California income tax (non-resident) on that income even though (at the time) I was a resident of Oregon.

Seems that California wants it's money no matter what!! It's totally unfair. But I suppose since the state is close to bankruptcy, you would have a hard time fighting it. Frustating!!!

Thanks, MrsRupert.

That's super frustrating indeed    Very unfair. Makes me feel like a fool for providing genuine data for my tax return.

Guess, I will be supporting the state of CA this year vs Doctors without Borders, etc.

Aargh!

So I get my tax return back from the accountant. According to them I owe 959 USD California tax for the 17 days I spent traveling on business in CA last year.

This doesn't sound right. After all, business trips are part of my overall compensation by my UK employer. I didn't have any US income in 08.

Anyone ever came across this? What to do? I can't get hold of the accountant but need to FedEx the tax return today. 

Thank you.

How is a business trip consider compensation? I mean yes you may get extra money for traveling but I would not have thought that was compensation as in extra leave or pension top ups etc. Just curious.

But because it's a business trip for your employer, I would have thought they would be responsible for any taxes when you have been sent abroad. I know my employers always handle any tax things (in the other country - I am still responsible for UK tax things)  when I go abroad. It does seem unfair that you should be penalised for doing work for your comapny. Be interesting to see what a specialist says. Maybe I have just been lucky.

I am a UK chartered tax adviser and I also sat and passed the CPA exam before I returned to the UK in 2006.

I provide a US, Canadian and UK tax preparation service for expats for a reasonable fee.

Check out my website at www.lynch.pro

Any comment/opinion on this thread?

Please be reassured.  This is entirely normal under the laws of California - and indeed many under other States; none of which have a tax treaty with the United Kingdom.

Your accountant may just have forgotten to tell you that all of the California taxes are claimable as double tax relief on your UK tax returns.  So overall yes you pay California but you get a refund of the same amount from the UK when you file your UK return.

Your accountant may just have forgotten to tell you that all of the California taxes are claimable as double tax relief on your UK tax returns.  So overall yes you pay California but you get a refund of the same amount from the UK when you file your UK return.

would this also apply for those of us caught in the domcile loophole with states like massachusetts?  i don't plan on ever moving back there but since it's the last place i lived, technically i would owe mass. state taxes for the rest of my life...can i then claim this money back each and every year from the uk?

Your accountant may just have forgotten to tell you that all of the California taxes are claimable as double tax relief on your UK tax returns.  So overall yes you pay California but you get a refund of the same amount from the UK when you file your UK return.

Even though you get a refund from the UK that still stinks.