TomD8
Level 15

State tax filing

@SMilton181 --

 

@RobertB4444 's answer is not correct.

 

From Colorado Code 39-22-109(b)(i)(A):

 

A)Telecommuting. A Nonresident employee who telecommutes from a location outside of Colorado is not working in Colorado and the employee's income from such work is not Colorado-source income.

https://casetext.com/regulation/colorado-administrative-code/department-200-department-of-revenue/di...

 

A non-resident of CO can only be taxed by CO on CO-source income.

 

If Colorado taxes were incorrectly withheld, the taxpayer should file a non-resident CO tax return, allocating zero income to CO, in order to receive a full refund.

 

The employer of such a taxpayer should not be withholding CO taxes.  See this:

 

"In general, employers are required to withhold Colorado income tax from any compensation paid to an employee who is either of the following:

  • a Colorado resident; or
  • a nonresident who performed work in Colorado."

Individual Income Tax Guide | Department of Revenue - Taxation (colorado.gov)

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.