State Income Tax in Nebraska and doing contract working in Washington which has no state income tax

[ctreat]

I am planning a move to Nebraska and will have an LLC there.  I will have a contract with a company in Washington state (that doesn't have a state income tax). Does this mean any income earned in Washington will be fully taxed by Nebraska?

Thanks!

[DoninGA]

Nebraska taxes all income regardless of the source, foreign or domestic.

[Hal_Al]

Q.  Does this mean any income earned in Washington will be fully taxed by Nebraska?

A. Yes, starting on the date of the move to NE.

You report all your income on your resident state return, including the income earned in another state. Your home state calculates tax on all your income, but gives you a credit, or partial credit, for tax you paid to the other state.

When you worked in a state without an income tax (e.g. Washington), there will be no credit, since there was no WA 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.