How does Connecticut tax remote workers?

There are a few situations to consider. You may fall into more than one category.

1. I lived in Connecticut.
• If you're considered a full-year or part-year resident of Connecticut, you'll be taxed on all income earned from any source during your time of residency. Be sure to file the appropriate return.
2. I worked remotely from Connecticut.
• Connecticut taxes income earned for personal services performed while in Connecticut (even if you're a nonresident). This includes remote work for an employer or clients based outside Connecticut if you were physically in the state while doing the work.
• You may be able to claim a credit for taxes paid to another state on your Connecticut resident return for any income required to be reported in multiple states.
3. My employer was based in Connecticut.
• If your employer was based in Connecticut, they may have withheld Connecticut taxes from your wages as shown on your W-2. However, if you don't meet the non-resident filing requirements, you generally will not owe Connecticut taxes on those wages and can file a nonresident return to claim a refund of those withholdings.
• If your employer didn't withhold Connecticut taxes and you were a nonresident of Connecticut, you probably don't need to file a Connecticut return at all unless you otherwise have a Connecticut nonresident filing requirement.
4. My resident state uses the Convenience of Employer rule (AR, DE, NE, NY, PA).
• If your resident state uses the Convenience of Employer rule and you worked remotely for a Connecticut employer, the source of your income depends on whether you worked remotely out of necessity or convenience. If you worked remotely from one of the 5 states out of convenience, your income is considered Connecticut-sourced and you will need to file a Connecticut return. If you worked remotely from one of the 5 states out of necessity, then your resident state is considered the source of your income and you won't need to file a Connecticut return.

If your wages were minimal and you didn't do any other business in Connecticut, it's possible you will be exempt from filing regardless of residency. See the Connecticut 1040 instructions for more information.