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February 24, 2024
Question

If i live in texas worked from home do i have to file in the state i work for.

  • February 24, 2024
  • 1 reply
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I worked online for a business in Philadelphia, PA but live in Texas. Do I file my taxes in Philadelphia, PA?

1 reply

LenaH
February 24, 2024

It depends on your employment agreement. 

 

Per the Pennsylvania Department of Revenue, if the agreement provides the employee with a physical workspace at the employer’s PA location and the employee elects to perform their work outside of PA, then the income for that employee is allocated to PA. If the employer does not have a physical work space in PA available for the employee to perform their duties and the work is performed outside of PA strictly for the benefit of the employer, the income for that employee is then allocated to the state in which those duties were performed.

 

Therefore, if your agreement with your employer was to telecommute from Texas for their convenience rather than yours, then you do not have to file a nonresident Pennsylvania return. In this scenario, however, if your employer mistakenly withheld Pennsylvania tax, then you should file to get a refund of taxes withheld. 

 

If you do have to file, please see instructions on the page How do I file a nonresident state tax return? 

 

For more information, please see How are telecommuter's wages taxed in Pennsylvania? and What is the convenience of the employer rule? 

 

 

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