Remote Work

[dc0011]

Resident of Texas during all of 2024. 
I worked for a company based out of Massachusetts for one month, then switched jobs to work for a company based out of NC. Relocated to NC in January, 2025.
How do I know if I need to file state income taxes in Massachusetts and North Carolina?

[AmyC]

If all of your work was done in TX with no work related to the states, then neither will require a return. If that is not the case, let's start with MA. 

You don't say what you did so you will need to determine if your income is taxable to MA. Income below $8,000 is not taxable. See employment of nonresidents. You may not have MA source income or your income could be below the $8,000 filing limit.

For NC: Every nonresident who received income for the taxable year from North Carolina sources that was (1) attributable to the ownership of any interest in real or tangible personal property in North Carolina, or (2) derived from a business, trade, profession, or occupation carried on in North Carolina, or (3) derived from gambling activities in North Carolina and whose total gross income from all sources both inside and outside of North Carolina for the taxable year exceeds the amount shown in the Filing Requirements Chart for Tax Year 2024.

[dc0011]

Thank you, Amy. 
I think I fall under (2) for NC, but I want to make sure. To also answer your question, I’m an engineer working for a large company based in NC. 

[AmyC]

The phrase "profession carried on in a state" typically refers to a profession or occupation that is conducted or practiced within a specific state or jurisdiction. 

North Carolina does have a convenience of the employer rule as well. See  What is the convenience of the employer rule? 

I wonder if you were traveling to NC and decided to relocate there to make the job easier. If you go into work at the office every so often, you are part of the NC work and income. Working under NC conditions and rules makes MC income.

If you never came into NC and telecommuted for the employer's convenience - they didn't have an office in your area, etc you would not be liable. 

An engineer example, if you have a PE in Texas, your income would not be taxed in NC simply because the office sending you work is there. If you have a PE in NC and happen to work in TX, then you would have NC income from your state profession license.