If you live in Texas you won’t pay income tax even if your employer is in Utah

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Jul 18, 2021
8:50:18am

USMCdad Intervention Needed

If you live in Texas you won’t pay income tax even if your employer is in Utah

Your income tax is based on where you work from, not where your employer is based.

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USMCdad

Previous username: mosterlow
Bio page: USMCdad
Joined: Jun 23, 2009
Last login: Jan 4, 2023
Total posts: 30,839 (8,222 FO)

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Messages

Author

Time

Anyone live and work remotely from Texas? Income tax question:

Moops

7/18/21 8:44am

Yes

Supercoug

7/18/21 8:46am

If you live in Texas you won’t pay income tax even if your employer is in Utah

USMCdad

7/18/21 8:50am

Same for a pension? Live in TX but employer in other state where retiree worked?

ExitStageLeft

7/18/21 9:48am

Thanks

Moops

7/18/21 11:19am

That’s exactly how it works. High property tax in Texas and income tax in Utah.

WDaddy

7/18/21 8:54am

That's only because you would actually be working in Oklahoma. He would still be working in TX, so no income tax

jaromp

7/18/21 9:08am

Oh yeah. I wasn’t thinking about the work from home part. Just thinking that his

WDaddy

7/18/21 9:13am

Tennessee is a better option for no state income tax

donnerstag

7/18/21 9:50am

If it wasn’t Texas, then it’d be TN or NC for me.

WDaddy

7/18/21 9:51am

But very high sales taxes

7/18/21 10:52am

No, he would be state taxes in Texas - so none. It’s where you do the work not the HQ

molodyets

7/18/21 10:14am

You wont pay income tax in Utah. Property tax is indeed much higher in Texas but cost of living is likely

7/18/21 8:54am

This depends upon your employer.

Future_Tacos

7/18/21 9:18am

Even if they withheld his income tax in Utah because his employer didn't change

Ozymandias

7/18/21 9:31am

If you move to Texas your work is in Texas

molodyets

7/18/21 10:16am

Everyone is a CPA it seems. I’d love to hear an actual CPA opine. I was in a situation that doesn’t jive with some of

Supercoug

7/18/21 10:31am

States have a say, but if you don't live or work in a State they can't tax you

Ozymandias

7/18/21 10:38am

There is a test. I do believe it’s possible to tax a remote worker.

Supercoug

7/18/21 10:44am

Some states allow for a minimum number of days that you must hit before the

Ozymandias

7/18/21 11:04am

It doesn’t jive because advice can’t dance. However it does jibe - I’m in OPs exact situation

molodyets

7/18/21 3:20pm

are you an employee or contractor?

Supercoug

7/18/21 3:25pm

Shouldn't matter.

Ozymandias

7/18/21 3:30pm

it's often dispositive. It absolutely matters.

Supercoug

7/18/21 3:31pm

No, it shouldn't matter in terms of where you income is taxed.

Ozymandias

7/18/21 3:35pm

Ok. I employ remote workers who are both employees and contractors. Our accountants seem to think it matters.

Supercoug

7/18/21 3:41pm

It matters for many reasons, just not where income tax is owed.

Ozymandias

7/18/21 3:44pm

Additionally, your accountants are going to be concerned with whether you need

Ozymandias

7/18/21 3:46pm

Nah man, that's within my wheelhouse. I know that stuff.

Supercoug

7/18/21 3:53pm

Apparently not.

Ozymandias

7/18/21 3:57pm

RE: Apparently not.

Supercoug

7/18/21 4:03pm

That article says exactly what we're all saying here, right? Employee pays income tax to the state where the work is

jaromp

7/18/21 4:12pm

Or where they live.

Ozymandias

7/18/21 4:15pm

Seemed to suggest there are multiple considerations.

Supercoug

7/18/21 4:17pm

For the employer, yes, but not to the employee/independent contractor.

Ozymandias

7/18/21 4:20pm

Cool. You found an article that confirms what I was telling you.

Ozymandias

7/18/21 4:14pm

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