How to determine the tax withhold for remote work?

Question

I am a student of state A (resident) and my apartment lease in state A ended at the end of May. Then I went to my wife’s state B during the summer. Also, I worked remotely for a company located in state C when I physically in the state B. In this case, which state should I tell the company to withhold the state tax at first? State B or State A? I think the company will automatically withhold state C(company address), But I don’t know I need to add another state for this.

Thank you

state income tax tax deduction taxes united states

Thank you

V-Red · Answer

Different states have different withholding rules. Some states such as California do not withhold tax from remote workers. Other states such as NJ do. If your company does indeed withhold taxes for remote workers (depends on state C), then you need to get a credit (that is equivalent to the taxes that were withheld by state C) on your tax return from your resident state (in 2021). This will prevent you from paying taxes to more than two states.

Answered by V-Red on January 25, 2021

How to determine the tax withhold for remote work?

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