Hal_Al
Level 15

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.