# Remote Coding and Out of State Taxes



## Belinda Frisch (Jan 21, 2011)

For all the remote coders out there that work for an out of state company: Do you pay state income taxes to both states (yours and the company's)?


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## bstephen (Jan 21, 2011)

*taxes*

I work for clients out of state as a consultant.  I pay taxes only where I reside- in Texas.


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## z3djinn (Jan 23, 2011)

You only pay taxes in the state where you're physically located and reside.


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## okiesawyers (Jan 23, 2011)

Hi Belinda,

I only pay taxes in the state that I reside.

Amy


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## Sigers (Jan 25, 2011)

It depends on the states that you are working in.  For example, bad luck if you live in South Carolina because they require you to pay taxes to the state no matter where you made the money.  So if you live in South Carolina and work in North Carolina you pay taxes in both states.   You need to check the tax laws in all states that you work in.  If you get a W2 or 1099 from a company in a state, you usually owe taxes in that state.  Some states require that you pay state taxes in the state you live, like South Carolina, and some don't.  But the most important thing is to check each state you work in and the state you live in.   And be very careful when using tax software to do your taxes, because most do not have information on multi state filing.  And if you file wrong it may be 5 years before you are contacted by the state and the state will have tacted on very high interest.

Rita Sigers CPC,CCP
Consultant


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