Question

Income allocation for remote employment

Forum|Forum|6 years ago
March 10, 2020
1 reply
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This year, I moved from Maine to Arizona, but I am still working remotely for a company in Maine. I am filing returns for both states. In my Maine filing, I am asked how much of my "nonresident period" income (e.g. income earned while living in AZ) was from Maine sources. Since I work for, and am paid by, a company based in Maine, should I say that 100% of my "nonresident period" income was from Maine sources? This drastically changes the taxes that I would be paying in Maine.

Not A Product Question

K

KatrinaB48

Yes, you should answer that you earned 100% of your income from Maine.

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H

hmccainAuthor

Thanks, Katrina. But what will I do next year, when I am living in AZ but earning all of my income in Maine? My understanding with remote work was that (with a few exceptions, like CA and NY), you only pay taxes in you state of residence (e.g. AZ, in my case), not in the state where your company is based.