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

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Jul 18, 2021
9:31:40am

Ozymandias All-American

his work location, he could file for a refund in Utah. He doesn't owe income tax in Utah if he is working in Texas.

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Ozymandias

Previous username: imanihonjin
Bio page: Ozymandias
Joined: Oct 9, 2006
Last login: Apr 17, 2024
Total posts: 28,106 (1,265 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

BeyondTheMark

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

YIsForBrigham

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.

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