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February 17, 2024
Question

Left Idaho - working remotely

  • February 17, 2024
  • 1 reply
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Relocated from Idaho to Alabama and my boss says I'm to valuable to let go! So I have worked remotely from Alabama for all of 2023. The small business I work for is located in Idaho.

 

So when TurboTax® asks how much did I make in Idaho do I enter 0? Or the amount on my W-2? I did all the work remotely in Alabama but my employer put in Idaho state withholding. Do I even have to file with Idaho state?

 

To further muddle the waters, I do remote into a workstation in Idaho and use the software on the remote computer to perform my tasks. So essentially I am not physically there, but is as if I am...

 

Thanks!

 

    1 reply

    AmyC
    Employee
    February 17, 2024

    You must file an Idaho return when your income is sourced there. See Idaho source income which states:

    Idaho source income is income from either of these:

    • Transactions or activities that take place in Idaho
    • Property in Idaho

    If you work purely from AL, you will have no activities in Idaho and do no need to file a return except for a refund.

    If you have activities in Idaho, you will will have taxable income and need to file like this:

    You will file AL since you are a resident. You don't say if you are part year or full year resident. Either way, AL will give you a credit due to the ID tax paid. 

     

    Your resident state taxes all income but gives a credit for income taxed by another state.  Please carefully follow these directions to prepare the states in a special order. You may need to delete both states and begin again.

     

    1. First, prepare your non-resident  ID return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
    2. Then prepare your resident state AL return and it will generate a credit for your income already being taxed in the non-resident state. 
    3. The credit will be the lower of the state tax liabilities on the same taxable income. You may owe your resident state,  if they have a higher tax rate along with differences in how the taxable income is calculated.

     

    It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.

     

    [Edited 2/19/2023 | 8:56 am PST] @mebeme_1963 

     

     

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    February 19, 2024

    I am a full year resident of Alabama, non-resident of Idaho.

     

    I think, unfortunately, you gave me the correct answer...

     

    Thanks... I guess...