topic Hybrid Remote Work in a State that does not do Income Tax in State tax filing

Hybrid Remote Work in a State that does not do Income Tax

mcdonaldsguy1228 — Wed, 22 Jan 2025 03:43:47 GMT

I work in a hybrid remote position and I am unsure how this will have an effect on my taxes. I live in Washington and work here 2 days a week. My company and the office I work in for the other 3 days of the week are based in Idaho. From what I understand, I am taxed based on the state the work is completed in. Since Washington does not do State Income Tax, am I entitled to a return from Idaho for the 2 days of the week I am not working in the state?

Re: Hybrid Remote Work in a State that does not do Income Tax

Hal_Al — Wed, 22 Jan 2025 14:01:13 GMT

Q. Since Washington does not do State Income Tax, am I entitled to a refund from Idaho for the 2 days of the week I am not working in the state?

A. Yes.

You will file an Idaho (ID) non resident tax return. You will encounter a screen, in the ID program, where you are asked to allocate your income as ID or not ID.

That's how it usually works. But, I'm not specifically familiar with the ID forms and software. If you encounter a problem, reply back. The alternate is to manipulate your W-2 entries (lines 15-20) to divide (allocate) the income between ID & WA.

Re: Hybrid Remote Work in a State that does not do Income Tax

mcdonaldsguy1228 — Thu, 23 Jan 2025 02:37:16 GMT

Thank you Hal. In TurboTax, during the state filing section there is a section called Idaho Income that says "Enter the following income amounts earned while a resident and/or from Idaho sources as a nonresident. If zero, enter 0." Would I just enter 60% of the income on my W2 into this section?

Re: Hybrid Remote Work in a State that does not do Income Tax

Hal_Al — Thu, 23 Jan 2025 11:18:36 GMT

Q. Would I just enter 60% of the income on my W2 into this section?

A. Yes.

Again, I'm not specifically familiar with ID rules. In many case, like yours, it's helpful to mail in your state return with a statement explaining why you're filing for a refund. State tax agencies are particularly doubtful in the case where state tax was withheld from wages.