How does Wisconsin tax remote workers?
There are a few situations to consider. You may fall into more than one category.
- I lived in Wisconsin.
- If you're a full-year resident you'll be taxed on income from any source. If you're a part-year resident of Wisconsin, you'll be taxed on all income received from any source while you lived in Wisconsin.
- If you worked in Illinois, Indiana, Kentucky, or Michigan while you were a resident of Wisconsin you probably only need to file a nonresident tax return if you need to get a refund of tax that was withheld.
- I work remotely from Wisconsin.
- Wisconsin taxes all salaries and wage income of full year residents, and (unless you're from Illinois, Indiana, Kentucky, or Michigan) Wisconsin taxes all salary and wage income earned by nonresidents working in Wisconsin.
- If you're a resident of Illinois, Indiana, Kentucky, or Michigan, employed in Wisconsin and Wisconsin taxes were withheld on Wisconsin wages as shown on your W-2, you may want to file a nonresident return in Wisconsin for a refund.
- I lived in another state and worked remotely for an employer based in Wisconsin and I didn't work physically at any time in Wisconsin.
- Nonresidents are taxed only on income sourced in Wisconsin. If you did not physically work in Wisconsin and your employer withheld Wisconsin taxes, file a Wisconsin nonresident return to get a refund.
