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New Member
posted May 31, 2019 11:44:38 PM

I am an independent contractor working and living in one state but my work is by computer in another state. How do I handle income per state?

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1 Replies
New Member
May 31, 2019 11:44:42 PM

In answer to your inquiry, please refer to the following post (simply click to open):

https://ttlc.intuit.com/questions/3630265

The detailed information provided there is for a Texas taxpayer who lives and works in Texas for an out-of-state employer.  The (potential) facts that your work may be on or through a computer (or network) located in another state; or that you may work remotely; or that you are an independent contractor, do not change the underlying analysis.  Your conclusion would be identical, in that you do not have to file or pay income taxes in a state where you have no tax "nexus" (which is defined as a relationship or connection between people or things, sufficient to legally allow a jurisdiction to impose taxes).

The real question you need to ask yourself, then, is where do you physically work?  If that response is that you just work out of one single state, then you only have to be concerned with filing income taxes in that single state (assuming your state has an income tax; Texas, for instance, doesn't).

If you do physically work in more than one state however, you may need to file income taxes in more than one state, and you will need to allocate your income between them.  This may also involve mutually-taxed income, as well as credits for taxes paid to another state.  These are topics that we don't need to discuss, unless they were to apply to you.  In that case, perhaps a telephone conversation with one of our live tax experts would be more helpful than text-based instructions.

Thus, if you have further questions, encounter any difficulties, or just want to speak with a tax professional who can walk you through your TurboTax entries (including the ability to screen-share with your computer), please feel free to contact us.  We would be happy to help you (and as a paying customer, the call is free to you).  Here is a link where you can create a support ticket and reach us:

https://support.turbotax.intuit.com/contact/



Thank you for asking this important question.