TeresaM
Expert Alumni

State tax filing

In general, W-2 work or self employment work is taxed where it is performed.  Since you are self-employed, if your business is listed in the state of Texas, you should not owe taxes to other states because you have clients there. If you travel to another state and perform services there, that may be a case where you would need to file a non-resident return to that state.

Since people have been working from home so much during the last couple of years, some states are trying to tax remote workers in other states. For instance, New York had legislation to do so and there are several lawsuits from their neighboring states, so it is not as definite as it used to be. However, it would take specific changes for Indiana to do that and I do not see mention on its tax website. Since you are a freelancer, it is especially unlikely this would apply, as your business is in Texas and you happen to have a client in Indiana.

 

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