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May 14, 2021
Question

If in 2020 I worked from home for the majority of the year should I pay tax in the state where I live or where my office is located?

  • May 14, 2021
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    1 reply

    RayW7
    May 14, 2021

    Generally you can expect to pay taxes to the state where you reside.  You will also be required to pay taxes to the state where you work --none of this is affected by the state your where your employer is located.  As a remote employee that spends most of your time out-of-state you would not be expected to pay taxes there.

     

    Under certain conditions you may be required to pay taxes to the state your employer is located in, if you spend a significant amount of time there.  (for example some cities levy taxes on visiting sports team players when the team 'visits' and plays a specified number of games/hours there).

     

    -follow this link for additional information-

    Multiple States—Where To File - TurboTax Tax Tips & Videos

    Employee
    May 14, 2021

    @esnturbo2020 --

    Your State of Residence can always tax ALL your income, regardless of where it was earned.

    Other states can tax you as a non-resident on income you earn by (physically) working in those states, unless there is a reciprocity agreement in place, or unless your income was below that state's filing threshold.

     

    It would help if you identified the two states involved.

     

     

     

     

    **Answers are correct to the best of my ability but do not constitute tax or legal advice.
    May 14, 2021

    Thank you! It's actually 3 states, residency NJ, 1 person works in NY and the other in CT.