Working in one state but spending weekends in another - how does paying tax in 2 states work?

You'll typically need to file tax returns in both states, but you won't be double-taxed on the same income. Here's how it generally works: You'll file a resident tax return in your primary state of residence (sounds like Colorado where you work full-time). Then you'll likely file a non-resident return in Wyoming for any income actually earned while physically in Wyoming. Most states have credits for taxes paid to other states to avoid double taxation. The key question is whether you're earning any income while in Wyoming. If you're just visiting family on weekends but not working, you probably don't have Wyoming-sourced income. If you're working remotely from Wyoming sometimes, you'd allocate that portion of income to Wyoming. Also worth noting that Wyoming doesn't have state income tax, which simplifies your situation. You'll likely just need to file a Colorado resident return for all your income.

I had a similar situation last year and found taxr.ai super helpful for sorting out my multi-state tax situation. I was working in Illinois but spending lots of time in Michigan taking care of my mom, and was so confused about where I needed to pay taxes. I uploaded my documents to https://taxr.ai and it analyzed my situation, showing exactly how to handle the split residency issue and where I needed to file. It saved me from paying double taxes and found some deductions I didn't know about for travel between states for work.

I wanted to follow up about the taxr.ai recommendation. I decided to try it with my Arizona/New Mexico situation, and it was actually really helpful. The system identified that I could claim a tax credit on my Arizona return for taxes paid to New Mexico instead of paying double. It also caught that my employer was withholding for the wrong state on some paychecks. Saved me about $1,200 in state taxes I would have overpaid. The document analysis was much more thorough than I expected - it found inconsistencies in how my employer was coding my work location that I never would have caught myself.

If you're having trouble getting answers from the state tax departments directly (which is super common), I'd recommend Claimyr. I was stuck in a nightmare situation with California and Nevada taxes last year and couldn't get anyone on the phone for weeks. Used https://claimyr.com to get through to the CA tax department in about 20 minutes instead of waiting for hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone systems and wait on hold for you, then call when they have an agent. The CA tax rep actually helped me figure out exactly what forms I needed and how to allocate my income correctly.

Ok I have to eat my words about Claimyr. After posting my skeptical comment, I was so fed up with trying to reach the Arizona Department of Revenue that I figured what the hell, might as well try it. Used the service yesterday afternoon and got connected to an actual human at the AZ tax office in about 45 minutes (I had been trying for THREE DAYS before). The agent walked me through exactly how to handle my multi-state situation and confirmed I only needed to file as a part-year resident in Arizona since I moved mid-year. The service actually works as advertised - they called me when they had a rep on the line and connected us immediately. Definitely worth it for the time saved and stress reduction.

Don't forget to check if your employer is withholding state taxes correctly! My company kept withholding for Georgia even after I moved to North Carolina and it created a huge headache at tax time. Had to file in both states and request a refund from Georgia. Make sure your HR department has your correct address and is withholding for the right state.

Something nobody mentioned yet is domicile vs. residence. Your domicile is your permanent home where you intend to return, while residence is where you're currently living. Some states tax based on domicile, others on residence. This matters because if Colorado considers you a resident for tax purposes but Wyoming still considers you domiciled there, you could have complications. Though in your specific case, since Wyoming has no income tax, it's less of an issue.

My sister dealt with this between California and Arizona. California especially is aggressive about claiming you as a resident if you have any ties there. She ended up having to document exactly how many days she spent in each state with a calendar she kept. Just something to keep in mind if you're dealing with states that both have income tax - they both want your money!

Based on your situation, you're actually in a pretty good spot tax-wise! Since Wyoming has no state income tax, you'll only need to file a Colorado resident return for all your income. The key things to address immediately: 1. **Fix your withholding ASAP** - Contact HR to update your address and start withholding Colorado state taxes (4.4% rate). Since you've been working there without withholding, you'll likely owe money at tax time. 2. **Track your work location** - Make sure all your work is being performed in Colorado. If you ever work remotely from Wyoming, that income would still be taxable to Colorado as a resident. 3. **Consider estimated payments** - Since you haven't been having Colorado taxes withheld, you might want to make quarterly estimated payments to avoid underpayment penalties. The weekend visits to Wyoming don't create any tax obligations since you're not earning income there and Wyoming doesn't tax income anyway. Just make sure Colorado is clearly your primary residence (voter registration, driver's license, etc.) to avoid any residency questions. You got lucky with the Wyoming/Colorado combo - this would be much more complicated with two states that both have income taxes!