If I work remote from NC but the company I work for is in Nebraska am I gonna be subject to tax withholdings in Nebraska or NC?

[smahala1991]

This work-from-home stuff is quite new to me. I know the state you work your job in is subject to that states tax rules. But, what if you're a remote worker in one state for a company located in another? Anyone know the rules there?

[WindAtMyBack]

The short version is that you will probably end up paying the higher tax of the two states. The tax might be split, with one state getting the bulk of the tax.

Each state is different. Check the tax rules in your state. There should be special tax forms for this. In your state there will probably be a difference between "multi-state" and "out of state" jobs.

Remote work might be a special case that I'm not familiar with. Mutli-state is basically when you move from one state to another in the middle of a tax year. Out of state is when you live in one state and work in another. Your state will have different tax forms and instructions for any of these cases. So read the descriptions for each form and decide which one you need.

For out of state work where you physically work in another state, the state where you work *generally* has first dibs on the taxes. So you would pay the tax in the state where you work. Then *IF* your state has a higher tax, they will get anything above that amount. If the state where you work has a higher tax, then the state where you live will get none. That is when you physically work in another state. Remote work might be different.

Living in one state and working in another can be pretty tricky to do taxes. The income itself might be split. The tax withholding might be different. The standard deduction and tax rate will almost certainly be different.

Bottom line is that you need to check both states. Find the correct tax forms and follow the instructions. I've done it multiple times. It's more difficult than just doing your own state taxes, but you should be able to figure it out by getting the right tax form and reading the instructions.

Also watch for city taxes. I have a mailing address that is different than where I actually live. I've had companies try to withhold city tax based on my mailing address, not where I lived.

[TomMarks]

They will most likely tax you Nebraska state taxes that should be refunded at 100 % since you don’t live there, but you would have to pay NC taxes.

[lolligaggin]

I wish I could wish tax code into being like you

[Slut97]

If it sales tax then no if you live NC and buy something online from Nebraska then by law you cannot be charged Nebraska sales unless the merchant you are buying from has a business in NC, or NC agree to let Nebraska charge that sales tax, otherwise you don't have to pay it. Now on regular tax I am not sure of.

[GoodGuyBreakingBad]

It could be split between Nebraska and North Carolina

[lolligaggin]

These people are idiots. It all depends on the two states involved.

[LiamJHayden]

Should be where the work is performed.

[smahala1991]

so, in this case NC taxes

[LiamJHayden]

Yes. Double check Nebraska law just to be sure, but I have never heard of being taxed in another state when you do not work there at all.

[lolligaggin]

Should have looked it up if you don't know instead of guessing

[Anonymous]

NC it’s your address