28 March 2014
Quote of the Day: Not Always Working
Seen here, a grad student from New Mexico, attending school in California, gets a phone call from the California version of the IRS:
Tax Board: “We are calling because you didn’t pay your taxes for the previous year.”
Student: “For which year?”
Tax Board: “[Year student first arrived in California].”
Student: “Yes. I was not a California resident that year.”
Tax Board: “Yes, but you were living in California.”
Student: “True, but I was maintaining my New Mexico residency. I paid New Mexico state income taxes for that year. I’m a graduate student and since I could not guarantee that I would be staying past the first year, I was maintaining my New Mexico residency in case I didn’t pass through the first year.”
Tax Board: “But you were still living in California.”
Student: “But I was not a California resident. What money is this about?”
Tax Board: “We have a record of interest on [bank account] of $800.”
Student: “That account is drawn on a bank in New Mexico.”
Tax Board: “But you were living in California.”
Student: “But I was maintaining my New Mexico residency. I specifically did not move my accounts over nor did I register my car nor get a driver’s license in California until this year. My voter registration was for New Mexico. I was not a California resident.”
Tax Board: “But you were living in California when you earned the money.”
Student: “But I was maintaining my New Mexico residency. I was not a resident of California.”
Tax Board: “But if you are living in California when you earn money, you must pay California taxes on it.”
Student: “That makes no sense. That means anybody who is physically in California whenever any interest is earned means they owe California income tax and that clearly isn’t true.”
Tax Board: “But as soon as you started living in California, you owed California income tax on any money you earned. You weren’t just visiting. You were living here.”
Student: “Wait a minute. It seems every government agency here in California has a different idea of ‘residency.’ The DMV seems to think I needed to register my car as soon as I drove over the border from Arizona. The university says I’m not a resident until I’ve lived here a year. And now you’re telling me that I’m a resident as soon as I earned any money.”
Tax Board: “Yes, you owe California income tax on money you earned while living in California.”
Student: “You say I owe taxes on $800 of interest income? That’s what, eight dollars of taxes I owe?”
Tax Board: “That’s right.”
Student: “I’ll be happy to write you a check for $8 in exchange for a refund of the $10,000 in out-of-state tuition I had to pay.”
Tax Board: “Excuse me?”
Student: “If I’m liable for taxes, then I demand the services that those taxes paid for. San Diego State is a state-run institution. It is funded by my tax revenues. I was charged out-of-state tuition. But you, the tax franchise board, are saying that I am a resident of California. Refund me my out-of-state tuition. You can take the eight bucks out of that.”
Tax Board: “... I think we might be able to overlook this.”
Tax Board: “We are calling because you didn’t pay your taxes for the previous year.”
Student: “For which year?”
Tax Board: “[Year student first arrived in California].”
Student: “Yes. I was not a California resident that year.”
Tax Board: “Yes, but you were living in California.”
Student: “True, but I was maintaining my New Mexico residency. I paid New Mexico state income taxes for that year. I’m a graduate student and since I could not guarantee that I would be staying past the first year, I was maintaining my New Mexico residency in case I didn’t pass through the first year.”
Tax Board: “But you were still living in California.”
Student: “But I was not a California resident. What money is this about?”
Tax Board: “We have a record of interest on [bank account] of $800.”
Student: “That account is drawn on a bank in New Mexico.”
Tax Board: “But you were living in California.”
Student: “But I was maintaining my New Mexico residency. I specifically did not move my accounts over nor did I register my car nor get a driver’s license in California until this year. My voter registration was for New Mexico. I was not a California resident.”
Tax Board: “But you were living in California when you earned the money.”
Student: “But I was maintaining my New Mexico residency. I was not a resident of California.”
Tax Board: “But if you are living in California when you earn money, you must pay California taxes on it.”
Student: “That makes no sense. That means anybody who is physically in California whenever any interest is earned means they owe California income tax and that clearly isn’t true.”
Tax Board: “But as soon as you started living in California, you owed California income tax on any money you earned. You weren’t just visiting. You were living here.”
Student: “Wait a minute. It seems every government agency here in California has a different idea of ‘residency.’ The DMV seems to think I needed to register my car as soon as I drove over the border from Arizona. The university says I’m not a resident until I’ve lived here a year. And now you’re telling me that I’m a resident as soon as I earned any money.”
Tax Board: “Yes, you owe California income tax on money you earned while living in California.”
Student: “You say I owe taxes on $800 of interest income? That’s what, eight dollars of taxes I owe?”
Tax Board: “That’s right.”
Student: “I’ll be happy to write you a check for $8 in exchange for a refund of the $10,000 in out-of-state tuition I had to pay.”
Tax Board: “Excuse me?”
Student: “If I’m liable for taxes, then I demand the services that those taxes paid for. San Diego State is a state-run institution. It is funded by my tax revenues. I was charged out-of-state tuition. But you, the tax franchise board, are saying that I am a resident of California. Refund me my out-of-state tuition. You can take the eight bucks out of that.”
Tax Board: “... I think we might be able to overlook this.”
Labels: Not Always...
# posted by mamurd @ 11:22 PM 
