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April 6, 2023
Question

Should I be paying a Colorado income tax if I live in Tennessee, but work for a Colorado company?

  • April 6, 2023
  • 1 reply
  • 0 views

Hi there,

 

I am a Tennessee resident but work remotely for a company in Colorado.

 

Should I be paying a Colorado income tax?

    1 reply

    April 6, 2023

    No, you don't have to file a CO state income tax return. You are a remote worker.  Remote workers do not have to file nonresident state tax returns unless they physically travel to another state and perform work while they are there. Please see the additional information below.

     

    Generally, you’ll need to file a nonresident state return if you made money from sources in a state you don’t live in.

     

    Some examples are:

    • Wages or income you earned while working in that state
    • Out-of-state rental income, gambling winnings, or profits from property sales
    • S Corporation or partnership income
    • Beneficiary income from a trust or estate
    • For active duty military: non-military income earned outside your state of legal residence
    • If your employer withheld taxes for the wrong state

    Your won't need to file a nonresident return if:

    • You only have interest income from an out-of-state bank account
    • The other state doesn't collect income tax (Alaska, Florida, Nevada, South Dakota, Texas, Tennessee, Washington, or Wyoming)
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    csullyAuthor
    April 7, 2023

    Hi Helen,

     

    Thank you very much for the detailed response! You have saved me so much time and worry. 🙂

     

    I worked 100% remotely from Tennessee, so I will not be filing a CO state income tax return.