State Guide · South Dakota Resident / Nebraska Employer
Living in South Dakota,
Working for a Nebraska Company
Your tax situation changes significantly depending on whether you work from home or commute to Nebraska. Here's exactly what applies to you.
🏠 If You Work From Home in South Dakota (Fully Remote)
Withholding
Your employer should NOT withhold Nebraska taxes. Since you work remotely from South Dakota which has no income tax, you owe $0 in state income tax. Verify Nebraska taxes are not being withheld.
Filing
No state income tax returns required in either state.
🏢 If You Commute to Nebraska (In-Office)
Withholding
Your employer will typically withhold Nebraska state taxes for days you physically work there.
Filing
File a Nonresident Return with Nebraska to report income earned there. Then file a Resident Return in South Dakota and claim a credit for taxes paid to Nebraska — so you are not double-taxed.
Because tax situations — especially surrounding remote work — can be complex, verify your specific W-2 reporting by consulting a tax professional or your employer's HR payroll system.
Ready to file?
Multi-state returns can be complex. TurboTax handles both states in one workflow, or connect with a CPA who specializes in remote workers.
File Accurately — Recommended Tools
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