Career Help and Advice

TacoD

(581 posts) Mon Jun 23, 2014, 11:37 AM Jun 2014

Telecommuting across state lines

Anybody here telecommute across state lines? Do you pay state income tax in both your home state and your employer's home state? I am considering a job where I would work from home in Iowa, with the employer's home office in New York, but I am wondering about the state tax implications.

2 replies

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Telecommuting across state lines (Original Post) TacoD Jun 2014 OP

While I was a W-2 employee... discntnt_irny_srcsm Jun 2014 #1

Thanks! (nt) TacoD Jun 2014 #2

discntnt_irny_srcsm

(18,565 posts)

1. While I was a W-2 employee...

Reply to TacoD (Original post)

Mon Jun 23, 2014, 02:03 PM

Jun 2014

...my pay would be subject to the withholding for the state in which the work was done. Some communities and counties have wage based taxes that include wages only on the rates are based on your gross.

Many states have reciprocal agreements where any taxes due in your home state are given preference.
If you generally work at home and almost never in the state where your employer is located, your state tax should be your home state only. Your employer would be responsible for withholding for you.

TacoD

(581 posts)

2. Thanks! (nt)

Reply to discntnt_irny_srcsm (Reply #1)

Mon Jun 23, 2014, 04:06 PM

Jun 2014

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