Where Does CT Live in Florida? Tax Rules for Remote Workers

Remote work has made it easier for people to live in one state while working for a company based in another, but it also brings tax complexities, especially in states like Connecticut with strict rules for nonresidents.

For remote workers living in Florida but employed by a Connecticut-based company, understanding residency status, tax withholding, and filing obligations is essential to avoid unexpected liabilities.

Residency Classification

Residency for tax purposes depends on where an individual maintains a permanent home and how much time they spend in a state. Connecticut considers someone a resident if they are domiciled there or if they maintain a permanent place of abode in the state and spend more than 183 days there in a tax year. Domicile is based on intent—where a person has their true, fixed, and permanent home. Even after moving to Florida, Connecticut may still consider someone a resident if they have not taken sufficient steps to establish a new domicile.

Florida does not impose a state income tax, making it an attractive option for those looking to avoid Connecticut’s tax obligations. To establish Florida residency, individuals should obtain a Florida driver’s license, register to vote, and update legal documents with their new address. Spending more time in Florida than in Connecticut further supports a claim of nonresidency.

State Withholding Requirements

Employers must withhold state income tax based on where an employee’s wages are subject to taxation. If an employee works in Florida full-time and does not meet Connecticut’s residency criteria, their wages should not be subject to Connecticut withholding. However, Connecticut has rules that may still require withholding under certain circumstances.

If an employee occasionally travels to Connecticut for work, even briefly, the state may consider a portion of their income taxable. Employers must track the number of days an employee works in Connecticut to determine if withholding is necessary. Failure to withhold when required can result in penalties and interest charges.

For employees working remotely from Florida full-time, employers should update payroll systems to reflect the new work location. This often involves submitting Form CT-W4NA, which certifies that an employee is a nonresident performing no services in Connecticut. Without this form, employers may default to withholding Connecticut taxes, leading to unnecessary deductions and requiring the employee to file for a refund.

The Connecticut Convenience Rule

Connecticut applies the “Convenience of the Employer” rule, which affects nonresidents working for in-state employers. Under this rule, if an employee works remotely outside Connecticut for personal convenience rather than employer necessity, their income is still considered Connecticut-sourced and subject to state income tax.

This rule primarily impacts employees whose companies maintain offices in Connecticut and who are working remotely by choice rather than by employer mandate. If an employer requires an employee to work out of state for business reasons—such as managing a client base in Florida—then the rule may not apply, and Connecticut may not tax those wages.

Legal challenges and legislative efforts have sought to modify or eliminate this rule, as it can create double taxation risks. If Florida had a state income tax, an individual could be taxed twice on the same income—once by Connecticut and once by Florida—without a credit mechanism in place. While Florida does not impose an income tax, residents working for Connecticut employers should understand the implications of this rule to avoid unexpected tax liabilities.

Nonresident Filings for Connecticut

Individuals living in Florida but earning income from a Connecticut employer may still be required to file a Connecticut nonresident income tax return. The state mandates filing if a nonresident has Connecticut-sourced income exceeding the minimum filing threshold, which is adjusted annually. For the 2023 tax year, nonresidents must file if their Connecticut-derived income meets or exceeds $12,000 for single filers or $24,000 for married couples filing jointly.

When filing as a nonresident, individuals must use Form CT-1040NR/PY and report only the portion of income attributable to Connecticut. This often requires calculating state-apportioned wages, which can be complex if income is earned across multiple jurisdictions. Errors in this allocation can result in underpayment penalties or unnecessary overpayments. Taxpayers should maintain detailed records of workdays spent in Connecticut, travel logs, and employer-provided payroll documentation to substantiate their filings.