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New Member
posted Jan 22, 2024 6:41:55 PM

Did I make money in other states?

I live in Colorado, but my company is located in Texas and I telecommute/work remotely. I travel occasionally for work (quarterly) for large business meetings in Texas, otherwise I'm still living and working in CO. 

 

Did I "make money in other states"? I've seen several questions on the topic, but all I got from this is "it's tricky." Thank you in advance, as it's the first time I've had to deal with this tax situation. 

0 2 1966
2 Replies
Level 15
Jan 22, 2024 6:45:42 PM

Since Texas does not have a personal income tax you would answer No to the question of making money in other states.

Level 15
Jan 23, 2024 5:27:15 AM

Answer No.  The purpose of that question is to see if you need to file a state tax return for another state. 

Having earned money in another state does not reduce the amount of tax calculated for your home state.

 

This is the general rule: The income is work state (WS) source income since it was earned there. Resident States (RS) tax all their resident's income, regardless of where earned. You will file a non-resident tax return for the WS and report the WS income. You will file a full year resident return for the RS, reporting all your income. The RS will give you a credit, or partial credit for any tax paid to the WS.  Since your WS (TX) doesn't have a tax, all that is moot.