Is this doable? I was offered a remote position. Company not in my state, they said I could use a friends address in another state, but tax liability, possible tax wise?

Your remote income is taxable by your state of residence, regardless of where the employer is located (your state of residence can tax ALL your income.)

 If you actually perform the work from a location in a non-resident state, it would ALSO be taxable by THAT state.

Using a friend’s address so as to avoid taxation could be construed as tax evasion.

if you are domiciled or working n a state that has an income tax but using someone else's out-of-state address to avoid paying taxes, that probably rises to the level of tax evasion.  do you have a driver's license? what about voter registration?  there are ways states catch taxpayers who do such things. 

It really was not an attempt to avoid taxation. I wanted to see if it was an actual possibility to file in both states, or another way to be employed . It may be best to see if they would just hire me as a contractor and do a 1099.

@stompin699 - can you be specific on what two states are involved? this can get complicated as you bring up the idea of W-2 vs. 1099.

Let's say your employer is in CA and you work remotely in MN.  if you are a W-2 employee, you'd pay taxes to MN and NOT CA.  But if you were a 1099 contractor, you'd pay taxes to CA and MN (MN would give you a credit for most all of the CA taxes paid). 

What do you hope to accomplish by using an address in another state?

Where exactly would you use the address in the other state? On the employer's payroll records? On a Form W-9? On your tax return?

Be aware that the IRS shares tax return information with the states. If you use an address in another state on your federal tax return, that state will assume that the address on your federal tax return is where you live. They will then notify you that you have to file a tax return and pay tax to that state on all your income. But that does not excuse you from filing and paying tax in the states where you actually live and work. You will have to try to convince the tax authorities in the other state that you did not live or work in that state.

Why do you (and/or your potential employer) think you need a local address? That's not usually an issue.  It sounds like your employer simply doesn't know how to handle withholding for an out of state employee.

As others said, we need to know what the two states are, and whether you physically be working there and how frequently.

Maybe it's a job (such as in public service) that requires the employee to be a state resident?

In some states, even one remote employee gives the company nexus for corporate income tax in the employee's state. The employer might be trying to avoid that, or maybe just trying to avoid having to manage withholding and payroll taxes in a new state for just one employee. If that's the issue, maybe 1099-NEC is the way to go. I don't think using a contractor in another state would create nexus for the company, and they certainly wouldn't have to deal with payroll issues.

The OP talked about using "a friends address in another state." It's not clear that "another" state means the state that the employer is located in. It could be a third state. So again @stompin699, we really need to know what states are involved.

What state do you live in?

What state would you be working in?

What state is the company located in?

What state is your friend's address in?