[geeksweep]

Originally Posted by LAX2MIA5

Yes, you are not required to pay state income tax.

Couple fun facts, you don't even need to live in Florida to take advantage of this, just to have your 'primary residence' here. How you achieve this by owning, living the first 2 years primarily in this residence (which doesn't even mean the majority, just more than any other residence). After that 2 year block, you just need to adhere to the 2 parts per 5 block. Meaning in a 5 year span, you need to spend most of your time for 2 years. This can mean being completely absent 3 years, and in the other 2 years just spending more time versus your other residences.

Another fun fact, if you make you money overseas, and were there for more than 90days, you withhold up to 100k of income from FEDERAL INCOME tax.

So take advantage of your WFH, also write off your house as an expense for your business. Remember your income is not what it shows on your W2 or 1099 but what it shows on your W2/1099 minues your expenses which in your case would be your house (mortgage if you have it) etc.

Yeah for now I am renting but have lived in Florida since the summer of 2014 with no span on being absent at that same address.

So why did the companys rep at Intuit(turbo-tax) say that I would owe Indiana state income tax based on the fact that Florida doesn't have a reciprocal arrangement with Indiana?

[geeksweep]

State Tax Consequences of Telecommuting - Kessler Orlean Silver, KOS | Chicago, IL | Deerfield, IL | North Shore | Accounting Firm Kessler Orlean Silver CPAs | Chicago Illinois

I found that while looking. Fortunately Indiana isn't part of that list:

..."Those states are New York, Pennsylvania, Delaware, New Jersey and Nebraska. In those states all wages earned from an employer in any of those states are allocated to those states unless by necessity the nonresident’s work must be performed from his or her out-of-state location. Basically, these states will tax a nonresident telecommuter’s wages if the work is performed out-of-state for the convenience of the employee..."

[geeksweep]

this is also something i found out @Vacoder:

https://www.cpa2biz.com/Content/medi..._Workforce.jsp

"... In Huckaby, an employee worked for a New York employer from his home in Tennessee with occasional trips to the employer's office in New York. Huckaby split his income between these states based on the number of days worked in each. The court ruled for the state in finding that because working in Tennessee was for the employee's convenience rather than for the employer's necessity, all the income was taxable in New York...."

[vacoder]

Originally Posted by geeksweep

State Tax Consequences of Telecommuting - Kessler Orlean Silver, KOS | Chicago, IL | Deerfield, IL | North Shore | Accounting Firm Kessler Orlean Silver CPAs | Chicago Illinois

I found that while looking. Fortunately Indiana isn't part of that list:

..."Those states are New York, Pennsylvania, Delaware, New Jersey and Nebraska. In those states all wages earned from an employer in any of those states are allocated to those states unless by necessity the nonresident’s work must be performed from his or her out-of-state location. Basically, these states will tax a nonresident telecommuter’s wages if the work is performed out-of-state for the convenience of the employee..."

A little distinction here. Yes NY state and NYC city taxed me on a full time basis when I worked there but lived in NJ. However, when I filed my NY state returns I could itemize days not spent in NY and receive a refund from NY state. Those same days I would report to NJ and would pay NJ. Since NJ had a lower tax percentage it would save me money.

[vacoder]

Originally Posted by geeksweep

this is also something i found out @Vacoder:

https://www.cpa2biz.com/Content/medi..._Workforce.jsp

"... In Huckaby, an employee worked for a New York employer from his home in Tennessee with occasional trips to the employer's office in New York. Huckaby split his income between these states based on the number of days worked in each. The court ruled for the state in finding that because working in Tennessee was for the employee's convenience rather than for the employer's necessity, all the income was taxable in New York...."

Interesting. Which state sued? And which court ruled on this?

[HWTechGuy]

I've lived here since late 2012 and am also a remote employee. My employer based out of state. I have not paid a cent of state income tax.

[vacoder]

Originally Posted by geeksweep

this is also something i found out @Vacoder:

https://www.cpa2biz.com/Content/medi..._Workforce.jsp

"... In Huckaby, an employee worked for a New York employer from his home in Tennessee with occasional trips to the employer's office in New York. Huckaby split his income between these states based on the number of days worked in each. The court ruled for the state in finding that because working in Tennessee was for the employee's convenience rather than for the employer's necessity, all the income was taxable in New York...."

Interesting article. That NY law opens up a can of worms. What if the NY firms opens an office in TN with one employee. The business tax in TN would still be far lower than the personal income tax in TN. What would NY say about that? And which state courts would rule on it? And that is beside the notion of what is "employee convenience". For instance, if you had been working for a firm in Indiana and then moved to Florida one could argue that your continued employment did indeed benefit the employer since replacing you would have cost the employer x amount of training dollars.

[geeksweep]

Originally Posted by vacoder

Interesting article. That NY law opens up a can of worms. What if the NY firms opens an office in TN with one employee. The business tax in TN would still be far lower than the personal income tax in TN. What would NY say about that? And which state courts would rule on it? And that is beside the notion of what is "employee convenience". For instance, if you had been working for a firm in Indiana and then moved to Florida one could argue that your continued employment did indeed benefit the employer since replacing you would have cost the employer x amount of training dollars.

Yeah in my case I am not sure how my employers TurboTax rep told her I would owe Indiana state income tax. I don't get it. Maybe its a possibility that the rep is just plain wrong?

[The Villages Guy]

We live in FL and my wife's employer is in NC. When we moved from NC to FL, they stopped taking out state income tax the day that we moved to FL. She travels the country for her work and stops back in NC to visit the office a couple times a year, just for a day.

[Soup Not See]

Originally Posted by geeksweep

So currently I am working for a company in Indiana but working remotely (telecommuting) 100% of the time from my home. The only time I might step foot in Indiana would be a week or at the annual Christmas party. For some reason, the payroll company that my employer uses started taking out Indiana state income tax and even county taxes where the employer is located.

Previously, i worked 100% remote for a company in Illinois and never had this problem and never paid any Illinois state income tax. Now for some reason I am having this problem.

To my knowledge if i reside and physically work in Florida 99.9999% of the time(with the few exceptions that I mentioned) then i should not be held liable for any income state tax. I know that New York and a few others apply the 'convenience rule' but Indiana is not one of them as far as I can tell.

I am currently waiting to hear back from someone from H&R Block to verify but can anyone else confirm(especially if you work remote) that I should not have to pay any state income tax? Again I don't know why i didn't have this issue with my previous employer in Illinois but now i am with Indiana.

Thanks..

Not sure about Illinois, but how would the payroll company know you're telecommuting ? I'd speak to your employer or the payroll company itself and explain the situation. Most likely, you'll have to file an Indiana non-resident return to get the money back already paid in. On that return, you'd put down 0% as time actually spent in Indiana.