"earned income in another state" - includes consulting in state other than where I live?

[cwall9876]

If an employer is based in another state, but you work in your state of residence (consulting), is that "income from another state"?  Box 15 on the W-2 lists home state and state tax was deducted from this income - is it home state income?

[DS30 · Accepted solution]

It depends.

If you perform consulting work remotely from your home state, this income is sourced where the work is performed (your home state) and not where the company is located. In this instance, you will not have "earned income in another state" (so select "no" to this question (see screenshots) and will only need to report this income on your state of residence income tax return.

However, if you perform consulting work in another state, then the sourcing of this out-of-state consulting work will be to that other state. In this instance, you will need to report this other state sourced income on a nonresident state income tax return but you will get a state income tax credit in your home state (if your state have a state income tax filing requirement) for taxes paid to this other state on income that is also taxed in your home state. (You must report all income from all sources on your resident state income tax return.)

Here is additional information about filing in multiple states (select "see more answer" to view the entire attachment)

https://ttlc.intuit.com/replies/3300797