If you are “out there” more than a year, you have a bigger problem than which state you pay tax to.
For tax purposes, an out-of-town job assignment must be expected to last less than one year, for the expenses to be deductible, by the company.
Anything longer is a permanent change of “tax Home”. Generally, your tax home is the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home. (Reference: <a rel="nofollow" target="_blank" href="
http://www.irs.gov/taxtopics/tc511.html">http://www.irs.gov/taxtopics/tc511.html</a>)
Any expenses, the company pays on your behalf is taxable income to you.
You are also considered to be a resident of the new state, for sate income tax purposes. If you maintain a residence in the old state, you could well be considered tax resident of both states. Although one state will probably give you a credit for tax paid to the other state.
