I work remotely for a company in another state, from whom I received a 1099-MISC. Do I pay taxes to that state or just to the state I'm living in?

[1cindysood]

I work remotely In CO for a CA based company. I am moving to WY where my company is not an entity. Will I need to maintain a CO work address and pay CO taxes as a non resident?

[TomD8]

@1cindysood — Once you become a resident of WY, your work income is no longer taxable by CO unless you you perform the work inside CO.

You become a WY resident on the day you begin living in your new permanent home in WY.

[TBF205860]

I hope I can follow up with my own similar question here:

I will be working a permanent remote position for a company in WA while residing in OH.  Since WA does not have individual tax income, I wouldn't have to file nonresident income tax for WA or deal with tax credit from WA correct? I would only file individual income tax for OH?

Do tax deductions work the same as Self-Employment taxes if equipment and office space is not provided/paid for by the company or is that dealt with differently?

Would I need to pay estimated taxes as a remote employee (not self-employed contractor/freelancer)?

How does this work on the employers end: Would they only need to file a W-2 with my residing address?

Would my employer be required to do tax withholdings and what "set up" is needed? 

[xmasbaby0]

You mentioned a W-2.  If you are a W-2 employee then you cannot deduct any home office expenses or other job-related expenses.  The tax laws that changed for 2018 and beyond eliminated job-related expenses as a deduction on federal returns for W-2 employees.  The state laws may be different in various states so the tax software still lets you enter that information--and it flows to the state return. 

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-re...

If you are a W-2 employee your employer should withhold federal and state tax from your pay.  If they will not withhold OH tax then you might want to pay estimated quarterly tax to OH.  

[TomD8]

@TBF205860 —. Washington does not have an income tax, so there is nothing you need do with regard to the state of Washington.

Your income is entirely taxable by your resident state of Ohio.  As @xmasbaby0 said, as a W-2 employee you cannot deduct any unreimbursed business expenses on your federal return.  You should request that your employer withhold Ohio state taxes from your pay.  If they cannot or will not do that, you should make quarterly estimated tax payments to Ohio so as to avoid a large tax bill (and possible penalties) at year’s end.

[Shane_H]

So I have been looking everywhere for the answer to this and cannot find anything.

I live full time in Oregon, as I have for 4 years. I am wanting to accept a position that is 100% remote with a company in California. This means I would live and work in Oregon full time. But the company I work for is in California. Does anyone have any more information?

Thank you!

[DoninGA]

---

@Shane_H wrote:

So I have been looking everywhere for the answer to this and cannot find anything.

I live full time in Oregon, as I have for 4 years. I am wanting to accept a position that is 100% remote with a company in California. This means I would live and work in Oregon full time. But the company I work for is in California. Does anyone have any more information?

Thank you!

---

If you do not physically work in California you do not need to file a California state income tax return.  You do have to report on your Oregon state tax return all income received from all sources.

If you accept the position make sure the employer does NOT withhold CA state income taxes from your wages.  See if they will be able to withhold Oregon state income taxes.  If they cannot then you will have to pay Oregon state estimated taxes for your income during the year.

[gk007]

By any chance, do you know, if one can run into similar situation with Ohio?

Living and working in NY, received 1099-NEC (independent contractor) from an Ohio company for whom I performed services  fully remotely from NY.

Thanks (apologize for cross-posting).

[gk007]

By any chance, do you know, if one can run into similar situation with Ohio?

Living and working in NY, received 1099-NEC (independent contractor) from an Ohio company for whom I performed services  fully remotely from NY.

Thanks (apologize for cross-posting).

[ToddL99]

You only pay taxes to the state where you reside (state of legal residence) and any other state where you physically worked.

Based on the information you provided:

1. All your income is subject to NY tax, since you live and work there.
2. You are not required to file a OH return or pay OH tax, since you did not perform any work in OH.

[maglib]

At the moment there is issues in Ohio that the state is taxing if local jurisdiction withholds taxes.  So law in Ohio says yes you may owe tax if telecommuting from NY for Ohio company. Lots of discussion on legality and nexus. 

https://www.journalofaccountancy.com/news/2020/dec/surprise-tax-bills-for-some-teleworkers.html
https://das.ohio.gov/Portals/0/DASDivisions/DirectorsOffice/pdf/policies/humanresources/Taxes_Policy...

https://ohiostatetaxblog.com/ohio-bills-seek-to-repeal-law-giving-cities-flexibility-for-remote-work...

[gk007]

thanks

[ALC7]

I am faced with  a similar situation.  I am moving from VA to TN, but will be [nearly] 100% teleworking from my TN residence with the VA employer.  

A representative from the VA taxation department gave me this advice about the situation:

1) Am I surrendering my VA driver's license for a TN driver's license?  If so, then:

2) Any income that I make while telecommuting at the TN residence will not be taxable by VA.  However, if I travel to the VA employer for a few days throughout the year, then I will owe VA state tax for the number of days that I am physically in working in VA at the VA employer.  

[ne1919]

My company sent W2s for NJ (where company is) and NYC where I live. I have worked (due to COVID) from home the whole year.  What do I file for NJ? How do I get the money my company withheld for NJ since based on this thread I don't owe taxes for NJ ?

[ALC7]

I am not a tax professional, so you will need to verify this answer with a professional.  But from what I have learned as a taxpayer, it sounds like you will need to fill out a federal return, a state return for NY, and a state return for NJ.  On the NJ return, you will fill in that you had no NJ income, but you will also fill in on the NJ return the amount of state tax that NJ withheld.  Therefore NJ will owe you a state tax refund via your NJ tax return.  

[ErnieS0]

@ne1919 If I understand your question, you live and New York City and previously worked in New Jersey, but due to Covid-19, you worked remotely from your home in New York City.

If that is the case you were still considered a "New Jersey" employer and are subject to NJ income tax until September 30.

New Jersey and New York kept in place pre-COVID-19 tax arrangements with regards to employee residency even if an employee is working from home in a different state.

NJ changed its rules on September 30. See Teleworking – End of COVID-19 Temporary Suspension Period for Nexus and Withholding Purposes.

• File a resident NY return and report all your income.
• File a nonresident NJ return and report your income until September 30.
• Claim a credit on your NY return for tax paid to NJ

New Jersey sourcing rules dictate that income is sourced based on where the service or employment is performed based on a day’s method of allocation. However, during the temporary period of COVID-19 pandemic, wage income continued to be sourced as determined by the employer in accordance with the employer’s jurisdiction.

Check with your payroll department the facts and circumstances of individual situations may differ from the general rules.