I live in IL and work remotely for a company within my state, only pay taxes to IL as it is all based there. I have friends in Michigan and have a couple vacations planned where I will be continuing remote work a couple days a week from Michigan for my IL employer. Do I have to pay tax to Michigan since I will be in that state while working for remotely IL employer?
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do you get a w-2 or 1099-nec/misc?
if a w-2 file form MI-W4 with your employer. this should prevent MI withholding and since MI has reciprocity with Il none of your wages would be taxes by Michigan nor if you avoid withholding would there be a need to file a MI return.
unsure if you get a 1099, but as self-employed you may be liable for MI taxes for income earned while living or working there.
Q. I live in IL and work remotely for a company within my state. Do I have to pay tax to Michigan if I occasionally work while temporarily in MI?
A. No, if you are a regular W-2 employee, because of the reciprocal agreement.
Q. I live in IL and work remotely for a company within my state. Do I have to pay tax to a non-reciprocal state if I occasionally work while temporarily in that state?
A. Yes, but "nobody" does. See http://money.cnn.com/2013/06/28/pf/taxes/business-traveler-tax-threat/ If you live in a state without an income tax (e.g. FL or TX), it’s more likely you should file in the work states. You can't use the "it all comes out even" rationale for not filing.
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