What states typically require you to file nonresident tax returns? Criteria explained
So I'm a remote worker who's dealing with this multi-state tax situation for the first time. My company is based in California, but I've been living and working remotely from Colorado for the past year. I recently talked to a friend who told me I might need to file a nonresident tax return in California even though I never physically worked there. I'm really confused about which states can require me to file nonresident returns. Is it just having income sourced from that state? Or do you need to physically work there for a certain number of days? I know some states have those "convenience of employer" rules but I don't fully understand them. Does anyone have experience with this or know what the typical requirements are for states to make you file as a nonresident? I'd really appreciate any advice because I don't want to get in trouble for not filing if I'm supposed to!
19 comments

Paolo Longo
The requirement to file nonresident tax returns varies by state, but there are some common triggers to be aware of: 1. Income sourced from the state (like having an employer based there) 2. Physical presence in the state for work (even temporarily) 3. Property ownership or business interests in the state 4. "Convenience of employer" rules in certain states For your specific situation, California technically sources income based on where you physically perform the work. If you've been working entirely from Colorado and never in California, you might not need to file a California nonresident return - but this depends on your exact circumstances. Several states have specific income thresholds that trigger filing requirements for nonresidents. Others require filing if any income at all was earned there. The "convenience of employer" states (currently NY, CT, DE, NE, PA, and sometimes MA) are the trickiest - they can tax income earned while working remotely if you're doing so for your convenience rather than your employer's necessity.
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CosmicCowboy
Thanks for the detailed response. Two questions: 1) If I traveled to California for a company meeting for like 3 days this year, does that change things? and 2) Does it matter that my W-2 lists the California address of my employer even though I work remotely?
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Paolo Longo
Yes, traveling to California for work, even just for 3 days, can potentially trigger nonresident filing requirements. California has no minimum threshold of days - technically any work performed physically in the state creates California-source income that may need to be reported. The fact that your W-2 shows a California address for your employer doesn't automatically create California income. What matters is where you physically performed the work. However, this might flag your return for review by California tax authorities, so it's important to properly document your work location. You'll likely need to file both a Colorado resident return (reporting all income) and possibly a California nonresident return (reporting only income earned while physically in California).
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Amina Diallo
I went through a similar nightmare last year trying to figure out state taxes as a remote worker. I kept getting conflicting advice until I found this AI tax tool at https://taxr.ai that analyzed my specific situation across multiple states. It saved me so much stress because it looked at my specific travel patterns, remote work situation, and the exact states involved. The tool broke down exactly which states I needed to file in based on my travel history and income sources. It even highlighted that I didn't need to file in two states I was worried about because I fell below their nonresident income thresholds. Super helpful for complicated multi-state situations.
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Oliver Schulz
Does it actually tell you the specific thresholds for each state? I travel for work to like 5 different states and I'm never sure which ones I need to file in.
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Natasha Orlova
How accurate is this? I've been burned before by tax software that missed state-specific rules. Do they keep up with all the weird state rules like NY's convenience of employer stuff?
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Amina Diallo
Yes, it gives you the specific nonresident filing thresholds for each state - both dollar amounts and day counts where applicable. It really helped me understand which of my short business trips actually created filing requirements. The tool definitely covers the convenience of employer rules. That was actually my main issue since I work remotely for a New York company. It explained exactly how those rules applied to my situation and what documentation I needed to maintain. I found it way more specific to multi-state tax situations than general tax software.
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Natasha Orlova
Following up on my question about taxr.ai - I actually tried it and wow, it really does cover all those specific state rules! I was especially worried about the convenience of employer states since I work remotely for a company headquartered in New York. The analysis broke down exactly which states I needed to file in based on my travel patterns last year. It even explained why I didn't need to file in a couple states where I only had brief business trips (they had minimum thresholds I was under). I'm much more confident about my filing situation now - just wanted to share since this multi-state stuff is so confusing.
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Javier Cruz
If you're dealing with multiple states and having trouble reaching state tax departments for answers (which is basically ALWAYS), I recommend using https://claimyr.com to get through to a real human. I spent weeks trying to get clarification from California's tax department about their nonresident requirements and kept hitting automated systems. Used this service and got connected to a CA tax rep in about 10 minutes when I had been trying for days on my own. They have a demo video at https://youtu.be/_kiP6q8DX5c showing how it works. Super helpful when you need state-specific answers that you can actually rely on rather than general advice.
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Emma Wilson
How does this actually work? Does it just call the tax department for you? I'm confused why I would need a service for that.
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Malik Thomas
Sounds like a scam to me. Why would I pay someone else to call the tax department when I can just do it myself for free? Tax departments have to answer their phones eventually.
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Javier Cruz
It doesn't just call for you - it navigates the entire phone tree and waits on hold so you don't have to. When a real person finally answers, it calls your phone and connects you directly to the agent. You don't waste hours listening to hold music. Have you tried calling state tax departments lately? I spent 3+ hours on hold with California multiple times and got disconnected each time. Some state tax departments are literally unreachable right now with hold times exceeding 4-5 hours, and they often disconnect calls after 2 hours. This service basically waits in the phone queue for you. If you've had success getting through on your own, you're extremely lucky!
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Malik Thomas
Alright I need to apologize about my comment on Claimyr. I was super skeptical about paying for a service to call tax departments, but after trying for TWO WEEKS to reach someone at New York's tax department about nonresident filing requirements, I gave in and tried it. Got connected to an actual human at the NY tax department in 45 minutes when I'd been trying unsuccessfully for days. The tax rep answered my specific questions about their convenience of employer rules and saved me from potentially filing incorrectly. Sometimes you really can't get through to these departments without help, especially during tax season. Lesson learned!
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NeonNebula
It's important to know that each state is totally different. I learned the hard way when Massachusetts tried to claim I owed taxes because I worked for a Boston company, even though I never set foot in the state. The most aggressive states for nonresident taxation are: - New York (notorious for their convenience rule) - California (will try to tax you if you even think about the state) - Massachusetts (similar convenience rules) - Pennsylvania (also has convenience rules) A lot depends on if your employer is withholding state taxes and for which states. Check your paystubs - that might give you a clue about which states you need to worry about.
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Isabella Costa
What happened with your Massachusetts situation? Did you end up having to pay taxes there even though you never went there?
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NeonNebula
I ended up not having to pay Massachusetts taxes, but it required some work. I had to provide documentation showing that I was required to work remotely (not doing it for my convenience) because my position was permanently remote. I also got lucky because during the pandemic, Massachusetts temporarily suspended some of their convenience rules, and my situation fell within that timeframe. Had it been a different year, I might have had a bigger fight on my hands. The key was proving that working remotely was a requirement of the position, not just my personal preference.
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Ravi Malhotra
One thing nobody mentioned yet is reciprocity agreements between states. Some neighboring states have agreements that allow residents to only pay tax to their home state even if they work in the neighboring state. For example, I live in Maryland but work in DC, and thanks to reciprocity, I only need to file a Maryland return. No DC nonresident return needed. Common reciprocity agreements: - DC has agreements with MD and VA - PA has agreements with IN, MD, NJ, OH, VA, and WV - IL has agreements with IA, KY, MI, and WI Worth checking if your states have reciprocity before going through the hassle of multiple returns!
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Freya Christensen
This is super helpful! Do you know where to find an official list of all these reciprocity agreements? Is there some IRS page that lists them all?
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TechNinja
The IRS doesn't actually maintain a list of reciprocity agreements since these are state-level agreements, not federal. Each state's department of revenue website usually has information about their specific reciprocity agreements. You can also check the Federation of Tax Administrators website (taxadmin.org) which has some good resources on interstate tax issues. But honestly, the most reliable way is to check both states' tax department websites directly since these agreements can change and you want the most current information. For anyone dealing with multi-state issues, it's also worth noting that reciprocity agreements typically only apply to wage income - if you have other types of income like rental property or business income in a state, you might still need to file there even with reciprocity.
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