@ajklenne --
Nebraska is one of a handful of states that tax non-resident telecommuters according to the "convenience of the employer" doctrine. That rule states that if a non-resident is telecommuting from a location outside Nebraska for their own convenience, rather than for the convenience of the employer, their income is considered "Nebraska-source" income, and is taxable by Nebraska.
See Section 003.01C "Compensation for Services" in this reference:
https://revenue.nebraska.gov/about/legal-information/regulations/chapter-22-individual-income-tax
So if you're working remotely from SD for your own convenience, your income is taxable by Nebraska.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
