What are my state tax obligations?

What are my state tax obligations if I work remotely?

If you work remotely, your state tax obligations depend on your residency and where your employer is located. Generally, you may owe taxes in your home state and possibly in the state where your employer is based.

Do I need to file taxes in both states?

Yes, you may need to file tax returns in both states. However, many states offer credits for taxes paid to another state to avoid double taxation.

What if I moved to a new state during the year?

If you moved to a new state during the year, you'll likely need to file part-year resident returns in both states, reporting income earned while living in each.

Are there any penalties for not filing?

Yes, failing to file your state taxes can result in penalties, interest on unpaid taxes, and potential legal action. It's important to file on time.

How can I find out more about my specific situation?

You can consult a tax professional or visit your state's tax authority website for detailed information tailored to your situation.