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Say you live in Connecticut, work in NJ and make trips to Washington, Oregon, Utah and Montana for business, are you obligated to file state returns in each of those states?
Say you live in Connecticut, work in NJ and make trips to Washington, Oregon, Utah and Montana for business, are you obligated to file state returns in each of those states?
In many states, the answer is yes, depending on a variety of factors that differ from state to state. Professional athletes and entertainers have been dealing with this for years, but it has spread to numerous other industries with mobile workforces in recent years, such as accounting firms. In many states, there is a minimum threshold (hours worked there or fees earned) that will trigger a tax obligation. Also, many adjacent states have reciprocity agreements.
The state would have no tax reporting to indicate you worked there. There probably are laws which technically would require you pay that portion of your income tax to that state, but unless it is being reported that way by the company you work for, it seems like it would be unnecessarily complicated to have to prorate your income amongst numerous states and file numerous returns.
how much does this end up being? for sports stars, it makes sense that a state would require filing of 6% of a multi-million dollar salary. For those making less than $2k/week, it seems there would be little gain for the state.
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