maglib
Level 10

State tax filing

You risk being double taxed if you live in one state but work for a company based in New York, New Jersey, Delaware, Pennsylvania or Nebraska.  Michigan is NOT one of the states. These 5 states had a convenience vs. necessity test. If they determine that working from home is a matter of convenience for you rather than a necessity for your employer, you will owe taxes to those states on the income you earn during your telecommuting days.  

 

Most states though do not tax telecommuters.  If you have to be in the Michigan office on certain days though, you may be taxed on that income earned while having a physical presence.  Salary, wages, and other employee compensation for work performed in Michigan is considered taxable.  Many telecommuters must do office visits monthly.  So be careful to ensure you do pay those taxes since your employer location is that state.  

**I don't work for TT. Just trying to help. All the best.
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I am NOT an expert and you should confirm with a tax expert.