Work location: Home?

[anil_sal]

Can somebody knowledgeable answer before I knock on lawyers' doors paying consultation fee?

I live in IL. A company in TX wants to offer me a job wherein I can work from home. The company has no office in IL.

In this case:
a) Can I get my H1 done with TX as work location and I work from home?
b) What happens to the state taxes? Will I be incurring taxes in TX or IL? My official work location will be TX whereas I live in IL.

Can anybody explain if there are issues?

 

[jaxen]

Telecommuting is throwing challenges all over.There are few issues that determine which tax you have to pay-
1. Office address in paycheck
2. Home address in paycheck
3. residential address that you maintain with the post office.

If any of these addresses straddle in both states,you have to pay both state taxes. If the office contact address is made to be in IL,you dont have to pay state taxes in TX (!!)