In February 2025 I accepted a remote position for a company in Nebraska, working remotely out of North Carolina. I will be required to be on-site in NE 4 - 5 weeks a year. I was told by HR I would have to pay NE state income tax on those days worked in NE, since it will be over 7 days. But reading NE tax law, it seems that if the only reason I am working out of state is for my convenience, and the work can be otherwise done in NE, then all the NE income will be subject to NE taxation. Is my thinking correct that since the company couldn't attract an in-state employee and had to offer remote, then it's not just at my convenience, and I will only have to pay state income tax for the days I actually work in NE? Also, will I receive a credit from NC for those days. My employer is currently withholding NC state tax from my paycheck, and not NE state tax.
Thanks in advance for any help in advance. My research is not giving a clear answer on this topic.
Effective Jan 1, 2025, wages earned by nonresidents are taxable in Nebraska if:
- the employee works in another state for their own convenience (that is, the employer doesn't need the employee to work out of state),
- the work can be performed within Nebraska, and
- the employee works within Nebraska for more than seven days
Based on the information provided, you're correct that your income would be taxable to Nebraska due to the convenience of employer rule.
Your income would also be taxable to North Carolina. To avoid paying tax twice on the same income, North Carolina will give you a credit for some or all of the tax paid to Nebraska.
Thank you for this response. Just to make sure I understand, are all wages in NE subject to NE taxation, or just the days I work in NE? Sounds like all income?