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June 20, 2021
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Working remotely part of the year in AZ

  • June 20, 2021
  • 1 reply
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With WFH rules becoming more lax, I was considering doing 2-3 months a year in AZ from my home state of WA. I work for Amazon (Based in WA) and would be working remotely. WA has no state tax, AZ does

 

As far as I can tell, I'd be considered a resident of WA for tax purposes, making me a "non-resident" of AZ which makes this line apply:

 

Nonresidents are subject to Arizona tax on any income earned from Arizona sources

 

It's unclear to me if income from my job in WA would be a "Arizona source". 

    Best answer by TomD8

    Per AZ Statute 43-104, AZ-source income includes "income from any activities carried on in this state."  Therefore any income from remote work carried on from an AZ location is AZ-source income, and is taxable to you as a non-resident by AZ.

    https://law.justia.com/codes/arizona/2018/title-43/section-43-104/

     

    1 reply

    TomD8Answer
    Employee
    June 20, 2021

    Per AZ Statute 43-104, AZ-source income includes "income from any activities carried on in this state."  Therefore any income from remote work carried on from an AZ location is AZ-source income, and is taxable to you as a non-resident by AZ.

    https://law.justia.com/codes/arizona/2018/title-43/section-43-104/

     

    **Answers are correct to the best of my ability but do not constitute tax or legal advice.
    LotanAuthor
    June 20, 2021

    Well, that’s too bad. I’ll have to think about that. 

     

    It seems extra complicated since most of my pay happens via RSUs that vest on certain dates. I assume you’d just pro-rate it over the vesting time.