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Level 2
November 16, 2022
Question

Remote Work AZ/SD

  • November 16, 2022
  • 1 reply
  • 0 views

I didn't find a specific question regarding this, so I thought I would ask...

I live in South Dakota (no state tax), and work remotely for a company in Arizona. 

 

I was told by the payroll department that they needed to deduct state taxes, even though I don't live in Arizona. Regardless of whether I live in South Dakota that doesn't have individual state tax.

 

I did live in Arizona this year (2022), from January to July, and moved to South Dakota in July. I have worked remotely since then. Not sure if this info is relevant, but just in case it is; I wanted to share my residency status.

 

Thanks.

    1 reply

    Level 5
    November 16, 2022

    Sorry to say but - Nonresidents are subject to Arizona tax on any income earned from Arizona sources

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    EstebanFAuthor
    Level 2
    November 16, 2022

    Thank you very much for the quick response. That is what I thought. But, I just wanted to confirm.  Many thanks!