Does anyone know the answer to how to report the following to the IRS:
Live in State A and am hired by a company in State A to do a couple of weeks work in State B (W-2 work, although only for a couple of weeks). W-2 is from a payroll company that is also located in State A (per the W-2 address).
Do I have to file state taxes for this in State A or State B?
I am assuming only State A but wanted to ask those who know more.
Thanks!
Not an accountant but my understanding is that generally you are correct. BUT New York, California, and Illinois (maybe others) feel differently. However, because your address won’t change on your W2, you are probably fine.
Well, State A IS California 
That’s ok, the problem would be if State B was California.
Thanks! 
The federal IRS is not gonna care. Some states like CA and NY certainly care.
Since CA is ‘state A’, income earned elsewhere is taxable in CA. But you would receive an offset against any taxes paid to State B. But if State B is one of those with no state income tax, then no need to file in State B.
But would I even need to file in state B if all the addresses on paper are State A?
Ie—current residence, employer, and payroll company are all state A
My kid works part time in a state in which she doesn’t reside anymore. She files taxes in her home state as a resident, and in the other state as a non-resident.
But she had different employers in each state.
No. My husband works in different states regularly. The only ones he’s ever had to deal with are NY, CA, and IL
I don’t believe so but you can double check with your HR.
Depends on State B’s laws. If it was NY, yeah, they’d want their cash, and legally it would be due to them. That said, the chances of them finding out are slim and none if your employer puts all of the income on one W2 with CA residency and does not report it to NYS. Moreover, after any pro-rated deductions, not sure how much net $$ woudl be due to NYS for two weeks of wages.
Thanks!
I am employed by a 100% remote company and travel for work extensively to multiple states, and sometimes to different countries. But I am paid by my company as a salaried worker receiving a W2, and I pay state taxes where I am a legal resident.
That’s what the vast majority of folks do, but that doesn’t necessarily make it legal.
For example, professional ball players may have permanent residences in Florida or Arizona but they pay state income taxes into every state in which they have a game (or to Canada when they play a game north of the border). Taylor Swift does the same even if she is in a state for less than 4 hours in the year performing at a concert.
It depends on what state you are talking about and how long you will be there. Some states started cracking down on this during Covid with so many people working from vacation homes.
But I’m not personally being paid by the entity where I traveled - they purchased those goods and services from our company. I am just assigned as an employee of our company to deliver them.
It may depend whether your W2 is issued with multiple states on it. If they allocate income to state B then they may withhold tax there in which case you need to file to get credit for having paid it.
yes, I understand all of that. The work is being done/earned in a local city/state and it many cases, is legally taxable in that state. (Some states do have reciprocity agreements.)
I can assure you that if you do not live in California, but come to CA to perform work, that work is subject to CA income tax. No question. Now, does everyone that comes to CA to perform work complete a non-resident tax form? Of course not, but that just means that they are ignoring the law.
It is my understanding that Big Four consultants, who live/work on the road, complete time reports for work done in other states and then Payroll sends them separate W4’s to account for hours/salary for work performed in the respective states.
OTOH, independent contractors paid on a 1099, are responsible for taking care of any required state/local taxes for work performed inside teh state borders.
NY seems to be a particular problem. D18 did some remote work for an entity in NY during college. She never went near NY, but still had to file a state return there (in her case because the entity she worked for was required to withhold NY taxes).
My husband worked for years shooting on location in NY and CA and had to track every day that he was there and pay taxes. No other states (at the time) cared.