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I will be completing a project in another state, and I will be paid as an independent contractor (and issued a 1099). I will be working in my own state and submitting my work when done with the project. As far as I understand, I am only required to pay federal income tax and self employment tax on this. Because I will not perform the work in the other state, I won't have to pay that state's income tax. (My state of residence does not have an income tax, so that isn't a factor.)

Will I ever need to prove to this other state that I performed the work at home? If so, what kind of documentation would suffice?

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Will I ever need to prove to this other state that I performed the work at home?

They may demand you to file a non-resident return and report/pay taxes on the income unless you can show it wasn't taxable by them, yes.

If so, what kind of documentation would suffice?

Whatever proves where you were physically located at the time the job was done.

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It is highly unlikely that you would be required to prove anything.

If you are not having tax withheld in that state and you did no work in that state, you have no reason to file a tax return for that state. The state would have no way of knowing anything about you.

If somehow you did get on their radar, the burden of proof would be on them to show that you did indeed work in their state.

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  • The last sentence is incorrect. This is not a criminal case, they have no "burden of proof". They can assess based on the information at hand (which they may get from returns or audits of others), and it is the taxpayer who has to prove them wrong.
    – littleadv
    Mar 6, 2023 at 0:24

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