How does Iowa tax remote workers?

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

1. I lived in Iowa.
• If you're considered a full-year or part-year resident of Iowa, you'll be taxed by Iowa on all income earned from any source during your time of residency. Be sure to file the appropriate return.
2. I worked remotely from Iowa.
• Iowa taxes income earned for personal services performed while in Iowa (even if you're a nonresident). This includes remote work for an employer or clients based outside of Iowa 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 Iowa.
• If your employer was based in Iowa, they may have withheld Iowa taxes from your Iowa wages as shown on your W-2. However, if you didn't live or physically work in Iowa, you will not owe Iowa taxes on those wages and can file a nonresident return to claim a refund of those withholdings.
• If you are an Iowa nonresident, you did not physically work in Iowa, and your employer did not withhold Iowa state taxes, you probably don't need to file an Iowa return at all unless you otherwise have an Iowa nonresident filing requirement.

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