Skip to main content
March 6, 2024
Question

Live in TX, Work Remote for Company in PA - Do I pay PA state tax?

  • March 6, 2024
  • 1 reply
  • 0 views

I live in Texas and work remote (1099-NEC) for a Pennsylvania based company. Do I have to file Pennsylvania state income tax?

1 reply

DawnC
Employee
March 6, 2024

Maybe.   Did your employer withhold PA taxes?  The convenience of the employer rule applies to certain taxpayers who work from home.  It means you're taxed as if you work in your employer's state, even if you don't.  The convenience of the employer rule may apply to you if you live or work in:

 

  • Delaware
  • Nebraska
  • New York
  • Pennsylvania

To be exempt from the convenience of the employer rule and instead qualify as a remote, out-of-state employee, you'd need to be working away from your employer's location for their convenience rather than yours.   This could happen for several reasons, including the employer needing employees that they can't attract in their home state or needing employees in multiple locations to serve clients around the country.

 

Other factors that might designate an employee as a remote worker for their employer's convenience include:

 

  1. A home office is a requirement or condition of employment.
  2. The employer doesn't provide the employee with an office or regular workspace.
  3. The employer reimburses the employee for substantially all home office expenses.
  4. The employee has a bona fide business purpose for working at home (for example, to meet multiple project deadlines in the home state).
  5. The employee performs some core duties at home (for example, a stockbroker trades securities from home).
  6. The employer or worker regularly meets or deals with clients, patients or customers at home.
**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
Mary133Author
March 6, 2024

Thank you for your quick reply! No, my employer did not withhold any PA tax and the situation would definitely fit the "employer needing employees that they can't attract in their home state," so my understanding is that no PA tax is due. Is that correct?

DawnC
Employee
March 6, 2024

Correct. And you are welcome. 

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"