WFH in Multiple States

[dval29]

Hello - 

My wife and I earn about $300k per year, and both of us are 100% remote. Her company is based in CO and mine is based in CT. We moved to Florida in December of 2020, and we took steps to establish permanence there (we both got FL drivers licenses, filled out a "declaration of domicile," etc.). 

We both alerted our companies of our move, and our paychecks were moved to FL paychecks with no state tax withholdings. 

However, we have a rather fun 2021 planned though short-term rentals. We will spend about 8 weeks in CT, 6 weeks in NYC, 12 weeks in NM, and 1 week in Nantucket MA before heading back to FL. 

So here is my question: 

- Do we need to "report" each location to our employer for paycheck withholdings? Is it necessary to have our paycheck "issued" to our airbnb in Nantucket while we are there for 2 weeks and have MA withholdings? 

- Is it OK to just leave FL all year, and then pay each state some % of our income next year? 

- Beyond just "by the book," what is reasonable to do? I don't really want to fill out like 10 state income tax forms because we responded to an email while connecting planes in a new state. What is the spirit of the law vs letter of the law here in terms of time spent in each location and paying taxes? 

Thanks so much 

[ErnieS0]

You don't have to change the address for payroll purposes. Your permanent home is Florida. The other states are temporary stays.

Since your company is based in Connecticut your wages would be subject to CT income tax for the six weeks you work there.

The other states except New Mexico tax telecommuters by resident state, i.e. nonresident telecommuters are not subject to tax in Massachusetts and New York. New Mexico has not issued any guidance, but you are probably not subject to NM tax.

You can make an estimated payment to CT or you can wait until next year to pay any tax due on your nonresident income tax return.