You Might Owe Taxes in a State You Don’t Live In

Should you have to file a tax return in a state where you babysat for one hour? In 22 states, the answer is technically yes.In this episode of The Deduction, host Kyle Hulehan and co-host Erica York sit down with Katherine Loughead, Director of State Tax Projects at the Tax Foundation, to break down the tangled mess of state nonresident income tax laws — and why they're a growing problem in the remote work era.Katherine walks us through how credits for taxes paid to other states are supposed to prevent double taxation, why "convenience rules" in 8 states can saddle remote workers with two full tax bills, how a wild patchwork of filing thresholds creates confusion for workers and employers alike, and what reforms states should adopt to simplify the system.📄 READ THE FULL PAPER:"Nonresident Income Tax Filing and Withholding Laws by State, 2026"https://taxfoundation.org/data/all/state/nonresident-income-tax-filing/📄 RELATED: "State Individual Income Taxes on Nonresidents: Remote Work & Hybrid Work"https://taxfoundation.org/research/all/state/state-income-taxes-nonresidents/📄 "How Burdensome Are Your State's Nonresident Income Tax Filing Laws?" (Interactive Map)https://taxfoundation.org/data/all/state/nonresident-income-tax-filing-laws/📄 Mobile Workforce State Income Tax Simplification Acthttps://taxfoundation.org/blog/complicated-state-taxes-business-travelers/———HOSTS & GUEST:Kyle Hulehan — Host, Senior Marketing Associate & Creative ProducerTax Foundation: https://taxfoundation.org/about-us/staff/kyle-hulehanErica York — Co-Host, Vice President of Federal Tax PolicyTax Foundation: https://taxfoundation.org/about-us/staff/erica-yorkTwitter/X: https://twitter.com/ericadyorkLinkedIn: https://linkedin.com/in/erica-york-a68ab474Substack: https://ericadyork.substack.comKatherine Loughead — Guest, Director of State Tax ProjectsTax Foundation: https://taxfoundation.org/about-us/staff/katherine-lougheadTwitter/X: https://twitter.com/KELougheadLinkedIn: https://linkedin.com/in/katherine-e-loughead-6020a568———FOLLOW THE DEDUCTION:Twitter/X: https://twitter.com/deductionpodFOLLOW TAX FOUNDATION:Website: https://taxfoundation.orgTwitter/X: https://twitter.com/TaxFoundation📬 Have a question? Email us at [email protected] or DM @DeductionPod on Twitter.#taxes #remotework #statetaxes #taxfiling #incometax #taxreform #taxfoundation #deduction #podcast #workfromhome

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