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meyou1988
New Member

If I live in Wisconsin BUT earn income in another state for doing remote work (Nevada, no state tax) do I have to pay Wisconsin state tax?

All my work is done remotely, I live in Wisconsin but go to other states to do my work. I connect to my desktop in Nevada and thats where my paycheck comes from - so I dont get State taxes coming out. Do I now OWE wisconsin tax on that?
3 Replies
Critter-3
Level 15

If I live in Wisconsin BUT earn income in another state for doing remote work (Nevada, no state tax) do I have to pay Wisconsin state tax?

Wisconsin, as your resident state, will tax ALL your income no matter where it is earned or where the employer/client is located.  

Hal_Al
Level 15

If I live in Wisconsin BUT earn income in another state for doing remote work (Nevada, no state tax) do I have to pay Wisconsin state tax?

 The general rule is: your report all your income on your home state return, even the income earned out of state. You file a non-resident state return for the state you worked in and pay tax to that state. Your home state will give you a credit, or partial credit, for what you paid the non-resident state. 

 

Since NV does not have an income tax, you do not have a non-resident return to file. But you still have to pay tax on that income to your home state (WI).

 

When you worked in a state without an income tax (e.g.  Nevada, Texas or Florida), there will be no credit, since there was no NV tax. In other words, having worked in a state without an income tax does not get you out of paying state tax on that income, to your home state.

 

A separate issue is does working remotely, in your home state, for a job based in another state, count as working in the other state. It's not relevant in your case.  But, for others reading this, the  general answer is no but there are exceptions. 

 New York, Pennsylvania, Nebraska, Delaware and New Jersey have the  aggressive telecommuting rules.  If you work outside one of those  states as a job requirement, you are only subject to that state's income tax on the days you work there. But if you work outside the state for your own convenience, you are subject to that state's  income tax on all your income. For guidance see: http://www.journalofaccountancy.com/issues/2009/jun/20091371.html

 

 

TomD8
Level 15

If I live in Wisconsin BUT earn income in another state for doing remote work (Nevada, no state tax) do I have to pay Wisconsin state tax?

Since WI taxes are not being withheld from your pay, you should make quarterly estimated tax payments to Wisconsin.  This webpage has the necessary information on that:

https://www.revenue.wi.gov/Pages/FAQS/pcs-estpay.aspx

**Answers are correct to the best of my ability but do not constitute tax or legal advice.**

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