I live in Washington state and work full-time for a company located in Idaho. Since 2017, I've been regularly splitting my time between remote and in-office work - 60% of work days in my Washington home office, and 40% in the Idaho office. My W2s every year have reported all of my income as Idaho income, so I've been filing non-resident returns every year and paying Idaho income taxes on my full salary.
I recently read on Idaho's state tax commission website that nonresidents are only taxed on Idaho source income, which is defined as income from activities performed in Idaho. However, my employer is disputing this and claims that because the business is located in Idaho, all of my income is Idaho income.
Do I need to pay Idaho income tax on wages earned while working remotely in Washington? And if not, can I get my money back for the years I overpaid Idaho taxes?
Thank you!
