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08-20-2009, 07:46 PM
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3 posts, read 4,506 times
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Ok, so I have no idea how to figure this out. My wife and I currently live in NH and I may get an offer to work for a company based in Raleigh. If I work remotely from NH which is income tax free, I understand I would be all set as far as not having to pay state income taxes. But It's possible I may rent an apt. in Raleigh and work at the company's offices for 1-2 weeks a month, and the remainder of the month work remotely from NH. So would I have to pay NC state income tax in this situation? And would it be on my entire salary or just the portion of it where I am physically in the state? How is that even regulated if such is the case???
 Ugh, confusing stuff. Anybody have any idea how this would be handled tax wise?
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08-21-2009, 03:46 AM
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Location: Virginia (again)
2,697 posts, read 8,405,101 times
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I'm not a professional, but I believe you would be paying non resident income tax on the portion of your income earned while you were physically working in NC. So if you're here 20% of the time, you'd owe taxes on roughly 20% of your income. We lived in NC and worked part time in NC and part time in VA. We just kept track of the days we were in VA, calculated what we owed VA for the days we were there and then netted it out of our NC taxes (which doesn't apply to you since NH has no income tax). Also, we had the person who did my husband's payroll take both NC and VA taxes out (during different pay periods), so if you're her 25% of the time you might want to have NC taxes taken out every 4th pay period.
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08-21-2009, 05:44 AM
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363 posts, read 1,175,104 times
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That's about right. I do the same with NY. I live here but work in NY on average 25% of my time so have to pay 25% to them and 75% to NC
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08-21-2009, 09:47 PM
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88 posts, read 392,236 times
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We've been in this situation in the past (tri-state taxes, ugh), and yes, if your W-2s are set up correctly, you will be paying taxes in both states and receive credits when it comes time to file taxes (and you'll have to file for both NH and NC, even though you don't own property in NC. It will be income tax, obviously). A little added hassle, but if you do it right, it's not all that complicated. I would suggest documenting dates for each stay, just for easier reference or if your CPA needs it for calculating percentages.
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08-23-2009, 11:49 AM
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3 posts, read 4,506 times
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Thanks for all your input. This has been very helpful.
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