How does Rhode Island tax remote workers?

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

1. I lived in Rhode Island.
• If you're considered a full-year or part-year resident of Rhode Island, 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 Rhode Island.
• Rhode Island taxes income earned for personal services performed while in Rhode Island (even if you're a nonresident). This includes remote work for an employer or clients based outside Rhode Island 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 resident return for any income required to be reported in multiple states.
3. My employer was based in Rhode Island.
• If your employer was based in Rhode Island, they may have withheld Rhode Island taxes from your Rhode Island wages as shown on your W-2. However, if you didn't live or physically work in Rhode Island, you won't owe Rhode Island taxes on those wages and can file a nonresident return to claim a refund of those withholdings.
• If your employer didn't withhold Rhode Island taxes and you were a nonresident of Rhode Island, you probably don't need to file a Rhode Island return at all unless you otherwise have a Rhode Island nonresident filing requirement.

If your wages were minimal and you didn't do any other business in Rhode Island, it's possible you'll be exempt from filing regardless of residency. See the Rhode Island RI-1040or RI-1040NR instructions for more information.