Escapees March-April 2024

For those with income tied to a state by rental property, camp-hosting or by work, such as a travel nurse, you’re most likely going to have a state tax obligation. Make sure to know the rules for that state and save up for taxes you think you’ll owe. This will help you avoid any surprises when you fi le. If you’ve never fi led in that state before, you might want to consider help so you are able to have the fi ling completed properly. In January you’ll receive a W-2 for each employer that you worked for during the year. State taxes most likely were withheld from your pay so you’ll need to fi le in that state to know whether you receive a refund or owe more taxes. If you had more than one work-camping job, you’ll most likely need to fi le taxes in multiple states. Most of the time you must fi le a nonres ident tax return in the states in which you worked as a work-camper or other job in a physical location. This also means the only income that should be taxed by that state is the income you earned while physically working there. However, some states do it as a percentage of income earned so be careful. “The one credit I am seeing many RVers take advantage of is the solar tax credit.” For example, you spend the summer in Montana working at a campground from May through October. You earn $7,000 during your time there and had state taxes withheld from your paycheck. You’ll need to fi le with the state of Montana as a non-res ident even if you claim an income tax-free state as your domicile. More often than not I see taxpayers receiving small refunds from this work. However, that’s not always going to be the case. The last factor is the amount of time spent in one state. If you spend more than half the year in one state, then you may need to fi le a resident tax return. This is sometimes called a statutory resident. Look up the state laws or get help from a tax professional if this might apply to you.

What if you work remotely? A common myth about state taxes is that you have to pay them to the state where your employer is located. This is partly incorrect. You typically pay taxes to your resident or domicile state or the location where the work is physically being done, such as in the case of camp-hosting. The location of your employer’s corporate headquarters or home base should have no bearing on your state income taxes. The only exception I know to this rule of thumb is New York-based employers. If you work for a New York-based employer you most likely will owe New York state tax. While nonresidents who don’t physically live or work in a state can actually create a state income tax liability there in several ways, simply working for an out-of-state company isn’t one of them. Having to fi lea state tax return is from being paid for work you personally did on that state’s soil. Tax Credits or Deductions for RV Owners Now that you’ve got a grasp on state income taxes, it’s time to consider credits or deductions for which you might qualify. Unfortunately, being an RVer doesn’t give you any special tax deductions or credits. However, you can qualify to take the interest on a loan for the RV if it quali fi es as a fi rst or second home by having sleeping quarters, cooking quarters and a bathroom (most RVs would qualify). This deduction is part of itemized deductions. If you have enough to itemize vs. taking the standard deduction, then make sure to get the end-of-year loan statement to show the interest paid. You can also take personal property taxes on the RV and sales tax the year you purchase it, if you qualify to itemize deductions. It’s important to keep in mind that the standard deduction is quite high right now, so many taxpayers don’t itemize deductions. For 2024, the numbers are: • Single $14,600 • Married Filing Jointly $29,200 If you’re over 65, then you get to add an additional amount to your standard deduc tion. With these high numbers, I’m rarely seeing taxpayers itemizing deductions. Keep watching the tax laws though because

Be sure to check out the solar series being published in Escapees magazine. See pages 35–39 in this issue for part three.

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ESCAPEES Magazine March/April 2024