How does Idaho tax remote workers?

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

1. I lived in Idaho.
• If you're considered a full-year or part-year resident of Idaho, you will 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 Idaho.
• Idaho taxes income earned for personal services or activities performed while in Idaho (even if you're a nonresident), or income earned from an Idaho property (such as a rental property located in Idaho). This includes remote work for an employer or clients based outside Idaho 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 Idaho.
• If your employer was based in Idaho, they may have withheld Idaho taxes from your Idaho wages as shown on your W-2. However, if you didn't live or work in Idaho, you won't owe Idaho taxes on those wages and can file a nonresident return to claim a refund of those withholdings.
• If your employer did not withhold Idaho taxes and you were a nonresident of Idaho, you will be required to file an Idaho return if you have income earned in Idaho that is more than $2,500. You probably don't need to file an Idaho return at all unless you otherwise have an Idaho nonresident filing requirement.

If your wages were minimal and you did not do any other business in Idaho, it is possible you will be exempt from filing regardless of residency. See the Idaho Form 40 or Form 43 instructions for more information.