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Amazon Solution for California Residents?

by ibmethatswhoib
7 replies
So I have been awhile for a little while sorry if you guy's have been posting about this I haven't seen anything. I'm doing ok with Amazon and want to find a solution around this California mess. I have family in Oregon and I heard they don't have state taxes and won't mess with Amazon. So I'm wondering if I could say I live there and have the mail forwarded to me and still have my online banking intact. I'm just a little worried about when tax season rolls around and how I will deal with that. Any ideas? do you think this would work or have you guy's found any way's around this besides moving?
#amazon #california #residents #solution
  • Profile picture of the author myob
    That is not advisable, to say the least. Tax liability and "fake residence" is the end game for which many affiliates will have to face with severe penalties at risk. The California tax boys and perhaps even the feds won't take this trick too kindly.

    If you have been making a substantial income with Amazon consider incorporating or even moving to another state. Competent legal counsel should be sought for any situation.

    Alternatively, there are other similar affiliate programs that are not affected by the nexus tax issues such as Walmart, Barnes & Noble, Best Buy, etc.

    Basically, don't pay attention to any of the silly nonsense posted in threads regarding this very serious issue. You are the one that will face the consequences.
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    • Profile picture of the author rickfrazier1
      Originally Posted by myob View Post

      That is not advisable, to say the least. Tax liability and "fake residence" is the end game for which many affiliates will have to face with severe penalties at risk. The California tax boys and perhaps even the feds won't take this trick too kindly.

      If you have been making a substantial income with Amazon consider incorporating or even moving to another state. Competent legal counsel should be sought for any situation.

      Alternatively, there are other similar affiliate programs that are not affected by the nexus tax issues such as Walmart, Barnes & Noble, Best Buy, etc.

      Basically, don't pay attention to any of the silly nonsense posted in threads regarding this very serious issue. You are the one that will face the consequences.
      Agree, "fake residence" will soon be a problem for many folks. Residence in most places requires address, drivers license, showing public utilities bills (power, water, sewer as they apply), vehicle registration, and "primary bank account" in the state. To go through all of this and live in another would be difficult for most people. Of course, income taxes will get you in the end, and then you could face tax evasion charges (not good). By the way, California is known as a state that will "reach out" for taxes any way they can, and are very agressive. I know of folks that worked in CA, then moved to another state and retired. State of CA is taxing them on their retirement income, received in a different state, "because they generated the retirement income in CA". The little guy can't readily get beyond their reach. By the way, if you did try the Oregon thing, you would be paying Oregon income taxes, and probably have to still pay CA income taxes...

      Nevada is a popular state for incorporation. No sales or income taxes there. Minimum corporate tax means it won't be free, but there are a bunch of other benefits to being incorporated, like creating big retirement accounts that aren't taxed until you actually draw the retirement income, medical that is paid by the corporation and not part of your taxable income, and other perks. A good attorney or accountant can provide some details specific to your situation.

      Whatever you do, make sure you don't cross up the income tax folks (federal or state) they can make your life miserable for years!
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      • Profile picture of the author fluffythewondercat
        Originally Posted by rickfrazier1 View Post

        I know of folks that worked in CA, then moved to another state and retired. State of CA is taxing them on their retirement income, received in a different state, "because they generated the retirement income in CA".
        No. This is specifically prohibited by Federal law. The State of California cannot tax the retirement income of any individual who is not a resident. Typically the out-of-state retiree has to instruct the payer in writing not to withhold California tax. If the retiree has done this and California is muscling payers to collect anyway, this is a violation of Federal law.

        However, if you are out-of-state and receiving non-retirement monies from California, those usually are taxable.

        fLufF
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  • Profile picture of the author peterlaz
    Take a look at Skimlinks (Skimlinks :: Simplified affiliate marketing for publishers - generate revenue from your site's content easily)

    Skimlinks is a technology service that helps affiliates monetize their blog content by converting normal product links from over 15,500 merchants across 27 affiliate networks.
    Even Amazon is listed there and apparently with better commissions.
    Check it out and it may be a solution to the affiliate nexus tax fiasco.
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    • Profile picture of the author plugsnpixels
      FWIW, Amazon is starting to fight back in CA:

      Amazon seeks ballot measure to undo California tax | Reuters
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    • Profile picture of the author myob
      Originally Posted by peterlaz View Post

      ...Skimlinks is a technology service that helps affiliates monetize their blog content by converting normal product links from over 15,500 merchants across 27 affiliate networks.
      Even Amazon is listed there and apparently with better commissions.
      Check it out and it may be a solution to the affiliate nexus tax fiasco.
      Some affiliates have reported that Amazon has asked Skimlinks not to accept their affiliates in nexus states including California.
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      • Profile picture of the author JoshTara
        Originally Posted by myob View Post

        Some affiliates have reported that Amazon has asked Skimlinks not to accept their affiliates in nexus states including California.
        That doesnt make any sense that amazon would do that. Skimlinks is a legal way for amazon affiliates in states like california to still drive traffic and sales for amazon. maybe this was just rumor and hearsay.
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