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Level 1
posted Jun 19, 2021 5:21:14 PM

Working remotely part of the year in AZ

With WFH rules becoming more lax, I was considering doing 2-3 months a year in AZ from my home state of WA. I work for Amazon (Based in WA) and would be working remotely. WA has no state tax, AZ does

 

As far as I can tell, I'd be considered a resident of WA for tax purposes, making me a "non-resident" of AZ which makes this line apply:

 

Nonresidents are subject to Arizona tax on any income earned from Arizona sources

 

It's unclear to me if income from my job in WA would be a "Arizona source". 

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1 Best answer
Level 15
Jun 20, 2021 7:09:20 AM

Per AZ Statute 43-104, AZ-source income includes "income from any activities carried on in this state."  Therefore any income from remote work carried on from an AZ location is AZ-source income, and is taxable to you as a non-resident by AZ.

https://law.justia.com/codes/arizona/2018/title-43/section-43-104/

 

2 Replies
Level 15
Jun 20, 2021 7:09:20 AM

Per AZ Statute 43-104, AZ-source income includes "income from any activities carried on in this state."  Therefore any income from remote work carried on from an AZ location is AZ-source income, and is taxable to you as a non-resident by AZ.

https://law.justia.com/codes/arizona/2018/title-43/section-43-104/

 

Level 1
Jun 20, 2021 8:23:44 AM

Well, that’s too bad. I’ll have to think about that. 

 

It seems extra complicated since most of my pay happens via RSUs that vest on certain dates. I assume you’d just pro-rate it over the vesting time.