You Might Owe Taxes in a State You Don’t Live In

You Might Owe Taxes in a State You Don’t Live In

From The Deduction by Tax Foundation

April 8, 2026 · 41 min

About this episode

The episode discusses the complexities of state nonresident income tax laws and their implications in the remote work era.

Should you have to file a tax return in a state where you babysat for one hour? In 22 states, the answer is technically yes. In this episode of The Deduction, host Kyle Hulehan and co-host Erica York sit down with Katherine Loughead, Director of State Tax Projects at the Tax Foundation, to break down the tangled mess of state nonresident income tax laws — and why they're a growing problem in the remote work era. Katherine walks us through how credits for taxes paid to other states are suppo...

People in this episode

Hosts: Kyle Hulehan, Erica York

Guest: Katherine Loughead

Topics covered

  • state taxes
  • nonresident income tax
  • remote work
  • tax laws
  • tax credits

Keywords

  • tax return
  • babysitting taxes
  • state tax laws
  • remote work taxes
  • tax credits

Mentioned in this episode

Organizations: Tax Foundation

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