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Level 1
July 8, 2025
Question

State taxes

  • July 8, 2025
  • 1 reply
  • 9 views

I work for a company office in Colorado but I live and work in Wyoming and my company pulls colorado state taxes out of my pay. Is this correct or can I change this so I do pay taxes to a state I don’t live or work in?

    1 reply

    LenaH
    Employee Tax Expert
    Employee Tax Expert
    July 9, 2025

    If you are not working within the state of Colorado, you are not liable for Colorado state tax. You would only be liable for Colorado state income tax if you worked within the boundaries of Colorado. 

     

    Per the statue, a Nonresident employee who telecommutes from a location outside of Colorado is not working in Colorado and the employee's income from such work is not Colorado-source income. Therefore, you can have your company remove this state withholding as long as you are not earning wages within state boundaries. 

     

    Lastly, you will have to file a Colorado nonresident return to get a refund of taxes paid. Please see this article for more information. 

     

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