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State tax filing
Q. I have been offered a full time job with a company in California, and I will be working remote from my home in Indiana. Do I have to pay state income tax in both states?
A. Not if you will be a regular W-2 employee. If you occasionally go to California, on business, your salary for those days are technically considered California source income.
On the other hand, if you will be treated as a contractor, or "contract employee", and the income reported on a form 1099-NEC, that income will be taxable by both IN (your resident state) and CA (income source state). You are considered to be self employed. IN will give you a credit, or partial credit, for any tax paid to CA.
March 7, 2024
5:03 AM