WFH Question: I recently started with a new consulting firm and am assigned to Chicago, which has state income tax. Because of COVID, I currently live in Texas with no state income tax and have never lived in nor traveled to the Illinois, where my office is located. My understanding from Deloitte and another firm is that I should be taxed based on where my chair is (no-state income tax). I just had state income tax withheld. Can anyone point to the rule?

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Call HR benefit TAX Department. I’m not tax expert but from a common sense prospective, you can tell them that you live in Texas and you should be based out of Texas if they have office in Texas. Secondly, since it’s remote and covid it should be easily argued that whether or not if the company has a base location in Texas, the firm should withheld based on where you are physically located. It’s similar to when we travel to a diff state and pay tax for that state in addition to the state we live in and during the tax return one of the state tax are refunded back to you.

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