I currently live in FL and work remotely for a midsize corporation that has offices in 7 or 8 states (including FL). I would like to move to the Idaho, but the company has stated that the tax implications (to them) are too high to justify having an employee there. As a workaround (not to evade taxes...I would gladly pay ID state income tax if I was able to), I have thrown around the idea of full timing to be able to spend some time in Idaho and various other places. After searching for articles/posts and reading more about tax laws than I ever wanted to, I'm very confused on whether or not this would be ethical/legal. I realize that this is probably a question for a tax attorney, but wanted to get some input here first.Would it be possible to keep my domicile as FL and travel to other states without impacting my employer negatively? Would I be a non-resident of each state I visited and have to file a tax return for each? Is there a minimum amount of time I would need to spend in a given state before being taxed?I'm just in the research phase, so any input would be appreciated. Thanks in advance!

When you live in one state and have earned income in another you pay state income tax in the state where the income was earned.......I think.

In Illinois one has to file a State income tax return IF a Federal return is filed. Don't know what the rules are for other states.

I used to live in El Paso but worked in New Mexico, just across the border. I had to file/pay NM state taxes. In Texas, there is no state income tax. They just charge a higher sales tax, which is ultimately regressive (more punitive to lower income groups). So the situation was the worst of both worlds. I think, though, that I was able to write off the tax I paid NM on the following year's federal return. Wheee, 15 cents on the dollar! Anyway the guiding principle, I assumed, was that if an employer is paying you in state X, then state X expects you to pay their income tax if such exists.

Where is the corporations office located that you work remotely for?Your 'domicile' state would be FL and you would pay taxes on monies earned based on State in which corporation you are preforming work for.That is MY tax filing OPINION.Best to ask TAX attorney/CPA....corporation payroll might even know cause they would have to withhold appropriate taxes

Live in eastern Washington state and travel to Idaho. No state income tax in Washington

State income tax for each state for full time employee?

19 Replies

joshbegin
Explorer
Nov 30, 2015
Thanks for the replies. I know I probably need to talk to a tax pro, but just wanted to get some general input before doing that. It seems like the tax laws do not account for modern technology very well yet. Using the "if you're in the state while working, you have to pay taxes to that state" logic, I should file a return for many states each year since I check my work email whenever traveling and even work for a day or two from wherever I'm vacationing. Also, that would mean my co-workers need to file for additional states when the company flies them to offices in different states. What a pain! I know that doesn't happen, so maybe they are just unaware and no one has caught them yet.

I guess no one ever said taxes or laws were easy or made sense...

Thanks for the input. I'll decide whether or not to contact a pro, but at this point it seems like it may be more trouble than it's worth.
PghBob
Explorer
Nov 30, 2015
If you earn any income in Pennsylvania, you are expected to pay income tax to Pennsylvania on that money. Just ask any professional athlete (or a tax professional).
Jim-Linda
Explorer II
Nov 30, 2015
Tax information from an internet source is at best, a **** shoot. Follow the advise already given and use a professional.

Jim
dahkota
Explorer
Nov 30, 2015
This is about work camping, but the same general rules apply: RV Dreams - Taxes

More tax information
Marine_By_Choic
Explorer
Nov 30, 2015
Live in eastern Washington state and travel to Idaho. No state income tax in Washington
Old-Biscuit
Explorer III
Nov 30, 2015
Where is the corporations office located that you work remotely for?

Your 'domicile' state would be FL and you would pay taxes on monies earned based on State in which corporation you are preforming work for.

That is MY tax filing OPINION.

Best to ask TAX attorney/CPA....corporation payroll might even know cause they would have to withhold appropriate taxes
DandD2015
Explorer
Nov 30, 2015
I used to live in El Paso but worked in New Mexico, just across the border. I had to file/pay NM state taxes. In Texas, there is no state income tax. They just charge a higher sales tax, which is ultimately regressive (more punitive to lower income groups). So the situation was the worst of both worlds. I think, though, that I was able to write off the tax I paid NM on the following year's federal return. Wheee, 15 cents on the dollar!

Anyway the guiding principle, I assumed, was that if an employer is paying you in state X, then state X expects you to pay their income tax if such exists.
Dick_B
Explorer
Nov 30, 2015
In Illinois one has to file a State income tax return IF a Federal return is filed. Don't know what the rules are for other states.
Tom_N
Explorer
Nov 30, 2015
When you live in one state and have earned income in another you pay state income tax in the state where the income was earned.......I think.

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State income tax for each state for full time employee?

19 Replies

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