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I live in IN and just started working remotely for a company in CA. Likely, I would never visit CA for work. Which state am I going to pay tax?
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If you never work or live in California and CA state income taxes are not withheld from your wages then you would only have to file a an Indiana state income tax return for your state income.
You should have IN state taxes withheld from your wages by the CA company. If not, then you will need to pay Indiana estimated tax payments during the year.
The other answer is correct if you are a regular W-2 employee. If you are a contract worker (you receive a 1099-NEC), the answer is different.
Due to a 2019 court ruling in CA, if you are a sole proprietor and you provide services to a client located in CA, that income is taxable by CA - even if you never set foot in California.
And if you are a W-2 employee and will never work within California, request that your company's payroll office withhold only Indiana taxes from your pay.
If they can't or won't do that, you'll have to make quarterly estimated tax payments to Indiana. You can read the details about that here:
https://www.in.gov/dor/individual-income-taxes/payments-and-billing/estimated-tax/
Thanks! Last summer I worked as an intern for that company and received 1099 NEC. I got taxed by both CA and IN when filling tax this year. I am now working as a formal employee and going to receive W2. You answer solved my concerns.
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