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February 7, 2024
Question

Working remotely in a state other than where the company is based

  • February 7, 2024
  • 1 reply
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I'm about to start a new job. I live in Texas and will work there remotely. The company is based in Colorado. I have traveled to Denver for a few days of training and to pick up my equipment. I have filled out my federal W4, but have also been given a Colorado DR0004. Is there a Texas form that I should ask for instead? Do I need to have Colorado tax withheld from my check? Can I claim exempt? If I do have to have taxes withheld, do I need to file a Colorado Tax Return next year? Please help!!

1 reply

February 7, 2024

If you are a Texas resident, living and working there, you are not subject to Colorado state tax just because you are working for a Colorado company.  If your company insists that you fill out the Colorado withholding form, claim exempt if it is an option.  I recommend you contact your payroll department and make sure they understand you are a Texas resident and not subject to Colorado tax.  Texas does not have an income tax, so there is no Texas withholding form to fill out.  

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