Company location based state tax?
Glenn Frank, III CPA
Senior Tax Manager specializing in proactive tax strategies at JS Miller Group
Remote workers whose companies are based in in seven states will incur a?tax liability?in their state of residence as well as in the state in which their company is located due to convenience rules. These include Arkansas, Connecticut, Delaware, Massachusetts, Nebraska, New York, and Pennsylvania.
In these states, the worker need not ever step foot in the state where their company office is located to generate this tax liability.?Usually, your home state would give you a credit for any taxes you paid to that other state, but we've been seeing states become more and more aggressive.?A credit may not be offered, and?credit amounts?that are offered vary by state.