You're on the right track. It's true that income tax is indirect and thus uniform, but it's not AND but OR when you say 'living in, working in, and deriving their "income" from the federal territories and federal privileges'. Keep in mind there are many kinds of federal privileges, because if you don't you run the risk of (frivolously) oversimplifying the case. If you don't mind my assigning you homework, which are the privileges referred to on the W-2? They're generally not related to location of the work performed. The several categories and their confusability is one of the reasons people can't get the whole story even though it's in the IRC, and why people with parts of the story get slapped down easily as frivolous.
If you don't mind my assigning you homework, which are the privileges referred to on the W-2?
I'd rather you just state what you know, and we can discuss that.
But regarding W-2, it has to do with "wages," "tips," "dependent care benefits," "nonqualified plans," and "other."
The "social security" and "medicare" designations are irrelevant, as they are just categories of the overall income tax, but under Subtitle C rather than Subtitle A (but same thing, for practical purposes).
"Wages," defined in the code (at 26 USC 3401(a) and (c)) are basically money received for working for the federal government. You are correct that you don't have to do the work within the physical territory of DC. You could do that work anywhere.
The other categories, I have not looked into.
The ideal situation when it comes to W2 and 1099 is to arrange your financial life in such a way that those forms are not legally required to be generated in the first place; and if they are, then you have a legal way to avoid filing returns about them. One example is that corporations are exempt from receiving 1099's. There are a lot of "exceptions" in the tax code.
You can also file for a refund, but I understand that to be a bit "hit or miss," in terms of results.
You're on the right track. It's true that income tax is indirect and thus uniform, but it's not AND but OR when you say 'living in, working in, and deriving their "income" from the federal territories and federal privileges'. Keep in mind there are many kinds of federal privileges, because if you don't you run the risk of (frivolously) oversimplifying the case. If you don't mind my assigning you homework, which are the privileges referred to on the W-2? They're generally not related to location of the work performed. The several categories and their confusability is one of the reasons people can't get the whole story even though it's in the IRC, and why people with parts of the story get slapped down easily as frivolous.
I'd rather you just state what you know, and we can discuss that.
But regarding W-2, it has to do with "wages," "tips," "dependent care benefits," "nonqualified plans," and "other."
The "social security" and "medicare" designations are irrelevant, as they are just categories of the overall income tax, but under Subtitle C rather than Subtitle A (but same thing, for practical purposes).
"Wages," defined in the code (at 26 USC 3401(a) and (c)) are basically money received for working for the federal government. You are correct that you don't have to do the work within the physical territory of DC. You could do that work anywhere.
The other categories, I have not looked into.
The ideal situation when it comes to W2 and 1099 is to arrange your financial life in such a way that those forms are not legally required to be generated in the first place; and if they are, then you have a legal way to avoid filing returns about them. One example is that corporations are exempt from receiving 1099's. There are a lot of "exceptions" in the tax code.
You can also file for a refund, but I understand that to be a bit "hit or miss," in terms of results.