Phil's right. The bottom line of all that is you will typically pay the higher of the tax in your home state or the tax in the non-resident state. You won't save any state taxes by having some income in a different state, but you could pay more if the non-resident state has higher taxes. Why is this happening? This really isn't anything new. This is how states have taxed income earned in their state for many years (decades, even). It's just that with tight state budgets and better technology for enforcement, it's become worthwhile for states to go after smaller and smaller cases. Twenty years ago, it was pretty much just professional athletes (and the especially honest) who got caught up in this. --Peter
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