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For instance, if you are employed within NYS but telecommute from another state, your income is still subject to NY taxation

I believe that's the situation with most states. Living in income-tax-free WA doesn't exempt you from OR tax on your earnings if you commute to OR for work.

No. If you read my sentence sentence carefully, I said telecommute, ie., work from home. Most states only tax you on the nonresident income earned while you are physically in the state.

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