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Tax Year Prior to 2020: If i live in colorado , but my employer is in arizona, does my employer take arizona taxes out and not colorado?

 
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4 Replies
JulieC14
Expert Alumni

Tax Year Prior to 2020: If i live in colorado , but my employer is in arizona, does my employer take arizona taxes out and not colorado?

If you are living and working in Colorado, your employer should be withholding Colorado taxes from your paychecks.  If this is not happening, you will need to contact your employer to have it corrected for future paychecks.    

 

If Arizona taxes have been withheld, you will need to file a non-resident state tax return for Arizona in order to get the taxes withheld refunded.  And, you will more than likely owe taxes to Colorado on your state return if taxes withheld were paid to Arizona.

 

Click this link for more information on filing a non-resident state return in TurboTax:  How do I file a nonresident state return?

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Tax Year Prior to 2020: If i live in colorado , but my employer is in arizona, does my employer take arizona taxes out and not colorado?

That is a question you need to ask your employer.

Since you live in Colorado you should have Colorado state income taxes withheld from your wages, assuming that you are an employee and not self-employed.

TomD8
Level 15

Tax Year Prior to 2020: If i live in colorado , but my employer is in arizona, does my employer take arizona taxes out and not colorado?

If you live in Colorado but you work in Arizona, then your employer is correct to withhold Arizona taxes.

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

Tax Year Prior to 2020: If i live in colorado , but my employer is in arizona, does my employer take arizona taxes out and not colorado?

your employer is in AZ, but where do you work. for this employer.  in CO (like at home via computer) or do you physically work in AZ.              this is important.     if you are telecommuter  (say working from home in CO for your AZ employer),  AZ does not currently tax this income.      in this case you would only need CO withholding.  on the other hand if you actually work in AZ your are subject to both CO and AZ income taxes.   CO, as you domicile state, will tax you on all your income including wages from AZ.    you will get a full or partial credit for these taxes  on your CO return.   AZ will tax you on all income earned there which most likely would only be your wages   in this case you need AZ withholding and possibly CO withholding to cover the taxes you might owe there.   since we don't know you exact situation, its really difficult to say if CO w/h is needed.     

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